Jan. 2 at 3:55 PM
$CREG Chinese Yuan to Dollar rate continued uptrend into 2026 and for the whole year:
- Consensus among major financial institutions suggests that Dollar will face continued downward pressure;
- The outlook for Yuan is notably stronger. After a period of stability, Yuan has begun to appreciate more rapidly against Dollar.
This is a strong tailwind for Yuan-based, cash loaded bal sheets like what CREG has. In Q4 alone, Yuan appreciated against $ by 1.88%, giving CREG extra
$2.46 M for the quarter, before that
$22 M more cash from PP was added on top. Annualized gain from this could exceed
$10 M this year, more than enough to offset small losses based on avg burn rate from past few years and continue boosting equity value for this reason alone.
Will this be a big enough catalyst to "send this stock"? No, but it's a nice tailwind strengthening its bull case: current mcap is absurdly undervalued to audited cash; credible new biz launch will likely cause market to re-rate it to fair value.
