Chronux Research

The leading independent research firm in South Africa

Chronux Research, founded in 2020, is an independent equity research provider focused on the South African market, with coverage spanning over ten sectors and approximately 30 companies. Within the domestic market, Chronux is particularly well recognised for its Industrials, Construction, Mid-Cap and Forestry & Paper research, where the firm combines deep sector knowledge with disciplined financial modelling and a clear, conviction-led investment framework. The team provides a global perspective on key structural and cyclical themes across the sectors covered. Chronux delivers fundamental equity research incorporating both long and short ideas with analysis driven by in-house financial models, ongoing dialogue with industry decision-makers and regular engagement with management teams. In addition to company-level research, Chronux facilitates high-level interaction with senior executives and provides access to relevant industry experts, supporting clients in forming differentiated investment views. Chronux has also been committed to developing the next generation of analysts and advancing careers within the investment industry, supported by a strong and engaged institutional client base.

Our Corporate Sponsored Coverage

Making It Possible

Restricted content

Trading Update Key message: Strong demand across the Integrated Timber, Integrated Bedding and Polymer divisions has meant little lingering impact from the Covid-lockdowns. Polymer margins are also increasing. KAP released an operational update for the five months...

Forestry & Paper: DS Smith European Packaging Insights

H1 21A snapshot (y/y % chg.): Revenue -9%, EBIT -34% with margin compression of 300bps to 8.0%. ROCE down 310bps to 8.7%. EBITDA was adversely impacted by sales price/mix, specifically for Packaging. Encouragingly, organic FCF generation was up 16%. Dividends resumed...

Sasol: Spotlight on earnings – latest profit drivers

Sasol’s spot earnings continue to increase and are 14% for FY21 and are at R9.15/share.  Oil prices were 1.2% higher and while refining margins dropped back 14% and remain at very low levels.  Petrol cracks remain below R2.00/bbl.Asian polymer prices have...

PPC – Stuff You Should Know

Peer Group Analysis and Replacement Cost – EV/tonne Key message: On a peer group or replacement cost comparison, PPC is very cheap. PPC is trading on an EV/tonne of USD51/tonne, with replacement costs over USD200/tonne. Global peers trade currently at USD85-260/tonne....

PPC – 1H FY21 Results

Rights Offer Avoidance Key message: Apparent progress in the DRC debt restructuring and a boost to earnings from strong cement markets is reducing the probability of PPC having to raise cash to meet lender de-gearing requirements. PPC released 1H FY21 results. Revenue...

Restricted content

The Right Kind of Dealer Key message: The results do highlight the resilience of an equipment dealership (as opposed to a motor dealership). The equipment division stability through the cycle and in Covid-like times remains underappreciated, in our opinion. Barloworld...

Sasol: Mozambican gas – talking to an expert

LNG in Maputo:   Gigajoule in partnership with Total and MGC looking to build an LNG import terminal in the Matola harbour in Mozambique.  The project is far advanced and engineering design is underway.  A final investment decision will be made in...

Restricted content

Key message: A strong performance through the Covid-related lockdown period – Invicta’s margins were relatively strong and look to recover further. The balance sheet has recovered strongly. Invicta reported 1H FY21 results. Revenue and operating profit from continuing...

Sasol: Spotlight on earnings – latest profit drivers

Spot earning continue to increase and are at R8.05/share for FY21.  Oil prices were and the rand were flat and refining margins were slightly higher but remain weak and petrol cracks in particular have declined below $1.00 during the week.Asian Chemical prices...

Auto Anemometer

New Vehicle Sales – November 2020 Key message: NAAMSA has changed the way they report new vehicle sales by brand. Passenger and Light Commercial Vehicles are now grouped together. We have adjusted our tables and charts accordingly. NAAMSA released November 2020 new...