[Click eStock] "Food and Beverage Sector Faces High Exchange Rate Burden... Defensive Selective Investment"

Hana Securities advised on the 18th that for the food and beverage sector, it is effective to selectively invest in stocks with limited exchange rate impact in a short-term high exchange rate environment.

Sim Eun-joo, a researcher at Hana Securities, stated, "CJ CheilJedang, which has significant grain exposure, is expected to show profit improvement compared to the previous year," adding, "It will deliver strong earnings exceeding market expectations by about 10%, and as cost burdens ease, the annual operating profit improvement will be meaningful."

Researcher Sim explained, "Despite expectations for earnings improvement, a high exchange rate can dampen short-term investment sentiment," and added, "Selective investment in stocks with limited exchange rate impact will be effective."

He continued, "KT&G benefits when the exchange rate rises," noting, "Although first-quarter earnings are expected to be weak, steady tobacco exports are anticipated throughout the year. If the stock price falls due to first-quarter earnings weakness, it could be a buying opportunity."

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