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2025 Heatwave Themed Stocks: 10 Korean Stocks to Watch and In-depth Analysis

AI Prompt 2025. 6. 8. 09:35
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2025 Heatwave Themed Stocks: 10 Korean Stocks to Watch and In-depth Analysis

In recent years, the intensity of heatwaves has continued to increase due to abnormal weather patterns, drawing attention to energy, cooling appliances, daily necessities, food & beverage, and healthcare sectors. In particular, the Korean stock market, with its pronounced seasonal fluctuations, presents both sharp short-term rallies and long-term growth potential for heatwave-themed stocks. This post selects and analyzes 10 representative Korean listed companies expected to benefit in 2024, examining both bullish and bearish factors, technical perspectives, and investment outlooks in detail. 😅

 

Overview

Heatwave-related stocks enjoy seasonal benefits such as surges in power consumption, expanded use of cooling devices, increased consumption of beverages, water, and ice cream, effects on the agriculture and fisheries industry, and rising demand for healthcare products and services. Korea’s distinct four seasons and humid summers result in high price volatility for specific sectors and stocks. Accordingly, timing is a crucial strategy for investors when incorporating these seasonal themes into their portfolio. Below are the top 10 representative heatwave beneficiaries among Korean companies in 2024.

Recommended Stocks (Ticker)

  1. Samsung Electronics (005930)
  2. LG Electronics (066570)
  3. Winia Aid (377460)
  4. Autec (067170)
  5. Lotte Chilsung Beverage (005300)
  6. Nongshim (004370)
  7. HiteJinro (000080)
  8. Hyundai Energy Solutions (322000)
  9. POSCO Future M (003670)
  10. Chong Kun Dang (185750)

Factors Driving Stock Price Upside

  • Surge in Energy Demand

    In summer, electrical usage soars, and sales of cooling appliances (air conditioners, refrigerators, etc.) increase. Samsung Electronics, LG Electronics, Winia Aid, and Autec are representative beneficiaries.
  • Expansion of F&B and Daily Necessities Consumption

    Due to heatwaves, demand for beverages, water, and ice cream grows, leading to revenue increases for Lotte Chilsung Beverage, Nongshim, and HiteJinro.
  • Growth in Renewable Energy and Green Infrastructure

    Companies such as Hyundai Energy Solutions and POSCO Future M benefit from long-term momentum as energy efficiency and renewable infrastructure expand.
  • Rising Demand in Health and Pharmaceutical Sectors

    As health issues rise during heatwaves, demand for Chong Kun Dang’s products, and other health and elderly care items, increases.

Factors Contributing to Stock Price Downside

  • Seasonal Demand Limitations

    Once the peak season ends (typically after Q3), both results and stock prices may adjust downward.
  • Economic Downturn and Weakening Consumption Sentiment

    High inflation, rising interest rates, and economic slowdown may result in weaker demand for non-essential goods.
  • Risks of Rising Raw Material and Logistics Costs

    Increases in oil prices, raw materials, and logistics can negatively impact manufacturer and distributor margins.
  • Policy and Exchange Rate Volatility

    Potential changes in government energy policy and export sector conditions due to exchange rate fluctuations can also exert downward pressure on stock prices.
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Technical Analysis & Future Trading Value

  • Samsung Electronics, LG Electronics

    Benefiting from strong sales in cooling appliances and annual performance improvement, but there is some burden due to market valuation. Recently, both broke above their 60-day moving averages with increased short-term trading volumes.
  • Winia Aid, Autec

    As specialized brands for air conditioner and cooling systems, they exhibit strong momentum before and after heatwave seasons—a 25–40% stock price increase was noted in H1 2024. RSI levels are above 70, signaling short-term overheating.
  • Lotte Chilsung Beverage, Nongshim, HiteJinro

    Q2 earnings forecasts have been revised upward; MACD crossovers and upticks in 120/200-day moving averages serve as positive signals. Food & beverage stocks have the advantage of lower volatility (β < 1).
  • Hyundai Energy Solutions, POSCO Future M

    Highlighted as mid- to long-term growth drivers due to expanded renewable energy and ESG policies. Stock price volatility is currently high; nevertheless, trade volumes and market inflows are improving.
  • Chong Kun Dang

    Stable growth is expected thanks to increased demand for seasonal disease-related and health supplement products. PER and PBR indicators indicate valuation advantages versus regulatory risks.

Typically, stocks in the heatwave theme experience surges in trading volume and volatility from April to August. Key technical indicators (20, 60, 200-day moving averages, RSI, MACD) and sector PER, PBR should be taken into account for investment decisions.

Investment Outlook & Considerations

  • Diversified Investment and Mid- to Long-Term Growth

    Rather than chasing quick, short-term rallies, investors are recommended to use a diversified approach considering seasonality, valuation, and sector growth prospects.
  • Monitoring Performance Momentum and Policy Changes

    Check for seasonal performance, industry policy support, and forays into new businesses.
  • Macroeconomic Variables: Exchange Rate, Interest Rate, Raw Materials

    Be prepared to rebalance swiftly in response to unexpected external variable shifts.
  • Risk Management

    With the volatility particular to theme stocks, be prepared to take profits when entering overheated zones.

Conclusion

Even in 2024, Korean heatwave-related stocks are expected to expand thematically across consumer goods, energy infrastructure, and healthcare. However, rather than pursuing short-term seasonal rallies, a strategy that incorporates thorough risk management, diversification, and future growth potential is recommended. Investors should anticipate structural shifts, policy support, and changes in future industry trends to properly adjust their portfolios.

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