Securities Times reporter Li Manning, Kang Yin, Zhao Liyun
Since April, the RMB exchange rate has depreciated rapidly.
The onshore and offshore RMB exchange rates against the US dollar both depreciated by more than 2% last week, and this trend continued this week. On April 29, the offshore RMB experienced severe fluctuations again.
The sharp fluctuations in the exchange rate of the RMB have caused the market to worry about the performance of import and export A-share companies. Many A-share companies were eroded by exchange rate fluctuations last year.
Wind data shows that in 2021, more than 2,600 A-share companies will generate exchange losses of nearly 35.8 billion yuan, 818 A-share companies will generate exchange gains of about 20.5 billion yuan, and the overall total net exchange loss will be about 15.3 billion yuan.
However, unlike the trend of RMB appreciation in 2021, in the context of the recent RMB depreciation, export-oriented A-share companies generally expressed positive effects.
Whether related companies are expected to achieve performance reversals of different magnitudes by virtue of exchange gains and losses is worthy of follow-up attention.
export-oriented enterprise
Foreign exchange gains increased
"The decline in the exchange rate of RMB against the U.S. dollar is good for exporting companies, and it will definitely have a positive impact on our company." The relevant person in charge of Rebecca has been paying attention to exchange rate fluctuations in recent days.
The above-mentioned person in charge said that there will be a cycle for the company to send the goods to the customer and collect the payment, and generally it will take one or two months according to the cycle of the letter of credit.
Under the same price of wig products abroad, the decline of the RMB exchange rate will increase the company's immediate income, which will also drive profits accordingly.
In addition, the company has some foreign currency claims.
When the accounts receivable denominated in USD are settled at the current exchange rate, the income will also increase relatively, resulting in exchange gains.
As the largest professional hair products company in China, Rebecca products are sold to overseas markets such as North America, Western Europe, Asia, Africa and many domestic cities, and the proportion of exported products is more than 80%.
According to reports, most of the products Rebecca produces for American customers are produced in China, and only a few are produced in Cambodia and other countries outside the country. At the same time, the company's imported products account for a small proportion.
"In the past two years, the company has a certain reserve of raw materials, and will make reasonable adjustments based on the inventory situation, so imports will not increase in the short term." said the person in charge.
Kinglight, an exporter of small household appliances and mobile lighting, is continuing to deploy overseas markets. At present, the company's electrical appliances segment accounts for about 70% of its export business, which is settled in US dollars and has no import business.
"The recent depreciation of the RMB against the US dollar has a positive impact on the company's performance. We believe that the recent depreciation of the RMB will benefit the company's home appliance business in terms of revenue gains and losses, exchange gains and losses, and long-term national competitiveness." The relevant person in charge of Kinglight also told the Securities Times · e company reporter said.
With the recent sharp decline of the RMB against the US dollar, a number of A-share companies with a large proportion of export business have also bluntly stated that they will increase foreign exchange earnings.
"The export sales of the company's products account for more than 85%, and the export sales are mainly settled in US dollars. Due to the recent depreciation of the RMB against the US dollar, it will bring a certain amount of exchange income to the company, and will bring about the company's operating performance. A certain positive impact." Leybold Hi-Tech said.
Xinlong Health believes that the recent depreciation of the RMB has brought great benefits to the company's export business.
"It can reduce the procurement cost of foreign customers, help the company to win more orders from foreign customers, increase the market share, and at the same time help increase the company's exchange income." Xinlong Health said.
Winbond Health's overseas sales revenue in 2021 will be 4.66 billion yuan, accounting for 37.7% of total revenue.
The company's related products are widely exported to European and American countries, covering a total of 58 countries and regions around the world.
The company believes that in the short term, the devaluation of the RMB can bring certain exchange benefits to exporters; in the long run, the devaluation of the RMB means that the export prices of exporters will decrease, increasing their price advantage in the international market. It is good for the company to operate.
Kaiyuan Securities research report shows that it has reviewed the correlation between three rounds of RMB depreciation and exchange gains and losses in the same period and found that the correlation coefficients between exchange gains and losses and exchange rate changes in the same period of companies with a large proportion of export sales are positive, indicating that when the US dollar is converted to RMB exchange rate When it rises, companies have a greater probability of benefiting from the depreciation of the RMB, resulting in exchange gains.
However, the exact extent of the impact has yet to be verified.
Zhejiang Yongqiang said at the recent performance briefing that the devaluation of the renminbi has a positive impact on the company, and the specific impact on profits is related to the time of foreign exchange collection, sales confirmation time, and the company's lock-up.
Over 2,600 A-share companies
There was an exchange loss in the last year
Foreign currency assets and liabilities created by enterprises in financing and operating activities will generate exchange gains and losses due to exchange rate changes during the process of converting RMB.
This is also the most direct reason that exchange rate fluctuations affect the performance of listed companies.
"The foreign exchange gains and losses arising from exchange rate fluctuations are mainly reflected in the exchange gains and losses under financial expenses." The relevant person in charge of the aforementioned Kinglight told reporters.
According to Wind data, as of the press release on the evening of April 29, in 2021, 2,601 A-share companies will generate exchange losses of nearly 35.8 billion yuan, 818 A-share companies will generate exchange gains of about 20.5 billion yuan, and the overall total net exchange loss will be about 15.3 billion yuan. Yuan.
Judging from the exchange rate trend, in 2021, the RMB will appreciate by about 2.5% against the U.S. dollar. Looking back at the annual report data, companies with large exchange losses are mainly concentrated in export-oriented companies.
Specific to individual stocks, the infrastructure, equipment and other industries with large overseas income frequently see companies with large exchange losses.
Wind data shows that the top five companies with the largest exchange losses are Power China, China Communications Construction, ZTE, LONGi and ADAMA A, which incurred exchange losses of RMB 1.513 billion, RMB 1.101 billion, RMB 848 million, RMB 832 million and RMB 832 million respectively last year. 813 million yuan.
Among them, China Power Construction will be the company with the highest exchange loss of A-shares for two consecutive years in 2020 and 2021.
However, the company's net foreign exchange loss last year has narrowed from the 2020 level (2.3 billion yuan).
In terms of the degree of impact, Adama A's exchange loss last year seriously eroded the company's profitability.
ADAMA A's net profit in 2021 will be 157 million yuan, and the company's foreign exchange losses account for 518% of its net profit.
Hytera, known as the "Little Huawei" of private network communications, has business all over the world, overseas sales account for more than half of its revenue, and it is mainly settled in US dollars, euros, pounds and local currencies. On the table date, it is converted into the base currency according to the exchange rate, resulting in exchange gains and losses, and has a certain impact on the company's RMB accounting income.
"In 2021, the company's foreign exchange loss will reach 149 million yuan, mainly due to the large exchange loss of assets such as accounts receivable and other receivables settled in euros and U.S. dollars due to exchange rate fluctuations. It dropped to 7.22 at the end of the year, a relative decline of nearly 10%, which has a greater impact on the company's assets settled in euro." Hytera introduced.
There are also industries that obviously benefited from the strengthening of the RMB exchange rate last year, such as the air transport sector. The "three major airlines" China Eastern Airlines, China Southern Airlines, and Air China achieved exchange gains of 1.619 billion yuan, 1.575 billion yuan and 1.235 billion yuan respectively last year.
For the air transport industry, the purchase of aircraft and jet fuel by airlines is mostly settled in US dollars. The appreciation of RMB is strongly related to the cost of airlines. The appreciation of the exchange rate will reduce the company's operating costs. At the same time, higher foreign currency liabilities will bring exchange gains. .
However, due to multiple factors such as the new crown epidemic and rising international oil prices, the "three major airlines" all suffered huge losses of over 10 billion yuan.
It should be pointed out that the impact of exchange rate fluctuations actually does not stop at the currency settlement side.
A recent research report by Guosheng Securities pointed out that the indirect impact is mainly caused by operating activities. During the process of product export, the appreciation (depreciation) of the RMB may weaken (increase) corporate profits from the dimension of product sales or the profitability of a single product; , the appreciation (depreciation) of the RMB corresponds to the reduction (increase) in the cost of raw materials.
Talking about the impact of exchange rate fluctuations on the company's sales side, the relevant person in charge of Kinglight stated that my country's home appliance supply chain has the world's leading advantages in R&D design, manufacturing cost and response speed.
In the long run, if the RMB exchange rate continues to decline, it will help improve the price competitiveness of my country's home appliance export products, drive the steady growth of export orders from home appliance companies, and the company's small home appliance business is also expected to benefit.
Actively hedge risk
Changhai Co., Ltd. recently indicated that the main settlement currency for the company's export business is the US dollar.
Adhering to the neutral attitude of exchange rate risk, the company will flexibly use financial market tools and make appropriate use of hedging products such as forward foreign exchange settlement and forward foreign exchange trading in the foreign exchange market to lock in exchange rate fluctuation risks.
In the future, the company will pay close attention to changes in the international market environment and exchange rate changes, and try to minimize the adverse impact of exchange rate fluctuations on the company's operations.
In the face of exchange rate shocks, many listed companies have adopted forward foreign exchange transactions, hedging and other means to hedge their risks.
Relevant persons of Hytera told the reporter of Securities Times · e company that the forward foreign exchange transaction business can hedge and reduce some foreign exchange impacts. At the same time, this business requires strong professionalism, and the company will ensure safety and liquidity. Proceed with caution.
Australis, a Chilean subsidiary of Joyvio Foods, mainly purchases and sells in Chilean pesos and U.S. dollars, while its subsidiary Qingdao Guoxing involves settlement in U.S. dollars and euros.
In order to deal with exchange rate risks, Joyvio reduced its exposure to USD, and reduced the impact of future exchange rate fluctuations through spot foreign exchange purchases, advance foreign exchange collection, forward foreign exchange settlement and sales, and the use of RMB-denominated settlement.
At the same time, adjust the sales price or purchase price appropriately.
In terms of exports, exchange rate losses are amortized into export commodities to transfer exchange rate risks.
On the import side, the possible losses caused by exchange rate changes are excluded from the price of imported goods to pass on exchange rate risks.
Ying Fun Technology's experience in foreign exchange management is to actively carry out forward foreign exchange settlement in 2021 to reduce the risk exposure of exchange rate fluctuations.
The company said that it has achieved remarkable results. The gross profit margin in the past four quarters, including the first quarter of 2022, has been stable at around 28%, and the exchange loss after deducting the forward exchange settlement income has dropped from 86.4 million in 2021 to 6.32 million.
In its annual report, POWERCHINA stated that in order to mitigate the impact of exchange rate fluctuations, the company continued to assess exchange rate risks and used derivative financial instruments to hedge some risks.
In 2021, certain subsidiaries of the company will use forward foreign exchange contracts to conduct transactions with banks to hedge the exchange rate risks related to foreign currencies such as the US dollar and the euro in their individual transactions.