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.

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Raubex- FY21 Interim Results

SANRAL Returns Key message: Comfortably surviving the Covid-19 lockdowns, increased SANRAL activity bodes well for Raubex. A large building order book shows the growing diversity of the group. Raubex reported 1H FY21 results, with revenue and operating profit...

Sasol: Spotlight on earnings – latest profit drivers

Spot earnings are increased to R5.51/share as there was a slight recovery in oil prices while refining margins increased by $2.40/bbl.  Both petrol and diesel cracks are above $3/bbl.  Crack remain well below our estimates for the year, however.While plastic...

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New Vehicle Sales – October 2020 Key message: New vehicle sales through dealers back to 95% of prior year levels. However, sales to rental fleets are down 75.4%. NAAMSA released October 2020 new vehicle sales. Total vehicles sales declined by 25.4%, with passenger...

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Open Table Bookings Key message: We highlight restaurant booking data from Open Table. Second wave impacts are evident, with looming lockdowns (UK and Europe) likely to cause a significant fall in restaurant bookings. Open Table publishes daily restaurant stats in its...

Afrimat – FY21 Interim Results

Key message: Two new acquisitions – and the cashflow from Demaneng will likely cover the acquisition costs within 2 years. Afrimat announced FY21 interim results, with HEPS up 1.1% to 183.9c off a 9.4% decrease in revenue and 11.0% increase in operating profit.Bulk...

Sasol: Spotlight on earnings – latest profit drivers

Spot earnings are currently at R2.80/share for FY21 and have declined significantly on the lower oil price as well as significantly lower refining margins.  Diesel cracks remain negative and petrol crack spreads have also turned negative in the week.  We...

Sasol: More downgrades but also an upgrade

Earnings downgrades:  We have reviewed our earnings estimates for Sasol to reflect the most recent product prices, the recently published first quarter production numbers and updated guidance as well as the impact of the disposal of 50% of the Base Chemicals...

Forestry & Paper: Recovered Paper Outlook

We recently attended a RISI Asian Conference to try help understand how China will fill its fibre gap following the RCP ban and to what extent this will impact global containerboard trade flows. In this note, we provided insights gained into Global Recovered Paper.YTD...

WBHO – Further Trading Statement

Key message: Losses increase in Australia by an extra R200m to R1.2bn, but at least through a settlement that caps project costs. WBHO released a further Trading Statement covering the Covid-19 impact and completion of the Western Roads Upgrade in Australia.Further...

Forestry & Paper Weekly Industry Insights

Good news for Sappi, Verso halts efforts to find buyer for its idled Wisconsin Rapids mill: We have previously flagged this as a catalyst for SAP’s North American segment. If the mill closes, this would leave Sappi as the only domestic CFS sheets producer, potentially...