CITIC Securities: Recommends incorporating exchange rate analysis into profit forecasts, focusing on performance expectations of companies with high outbound investment and high exchange rate sensitivity.
A recent report from CITIC Securities suggests that currency exchange rates should be incorporated into profit analysis for companies with significant international operations. The report highlights that rapid growth in overseas revenue for A-share companies does not automatically guarantee stable profits in RMB due to the impact of exchange rate fluctuations on income, costs, and financial instruments. Investors are advised to identify companies with high exposure to international markets but low sensitivity to exchange rate changes for stable profit assets, while being cautious of those with high foreign currency debt or insufficient hedging. AI