'Hydrogen Week' Packed with Major Events, Will Hydrogen Stocks Gain More Momentum?

Continued Benefits Expected for Related Thematic Stocks Following Corporate Investment and Infrastructure Expansion Announcement

[Asia Economy Reporter Minji Lee] As major events related to the hydrogen industry continue this week, attention is focused on whether related stocks can gain upward momentum. Securities experts emphasize that benefits are expected to continue as private companies increase investments and the government is anticipated to announce policies to expand hydrogen infrastructure within the year.

According to the Korea Exchange on the 7th, Sanga Frontech showed a rise of 24% from the 1st of last month to the day before. Hydrogen fuel cell manufacturers Doosan Fuel Cell (8%), S Fuel Cell (4%), fuel cell parts maker Kolon Industries (6%), and power equipment company LS Electric (5%) also showed upward trends. This is analyzed as a notable rise in related stocks ahead of the 'Hydrogen Super Week' aimed at achieving carbon neutrality. On this day, Hyundai Motor Group opened the hydrogen industry event with the unveiling of its hydrogen vision at the 'Hydrogen Wave' event. On the following day, the 8th, a hydrogen business council involving 10 companies including SK Group and Hyosung Group is scheduled to be launched. The Hydrogen Mobility Show, held over four days until the 11th, plans to showcase hydrogen technology from 154 companies across 12 countries.

Until now, the hydrogen-related industry has received relatively less attention compared to the secondary battery sector, which has emerged as a leading theme within the same eco-friendly category. This is due to a lack of profitability; the secondary battery industry secured policy momentum early and attracted private investments, entering the monetization stage, whereas the hydrogen industry did not, thus missing out on the benefits of the eco-friendly theme.

However, with the hydrogen industry promotion policies becoming more visible in the second half of the year, it is analyzed that upward potential has been secured. In fact, the KODEX Secondary Battery Industry ETF, which tracks the secondary battery industry index presented by FnGuide, rose about 2% since last month, while the KBSTAR FN Hydrogen Environment Theme ETF, which uses the hydrogen economy theme index, also increased by approximately 2.8%.

Researcher Dami Kim of Shinhan Financial Investment said, "With the mid- to long-term growth potential of the eco-friendly theme secured, it is time to pay attention to hydrogen-related stocks, which have been neglected among related industries. The infrastructure shortage issue that has hindered hydrogen growth will be addressed through the government's momentum enhancement plans centered on the revision of the Hydrogen Act and the announcement of the Hydrogen Economy Roadmap 2.0 within the year."

Generally, hydrogen-related stocks are divided into themes such as hydrogen vehicles, hydrogen fuel cells, hydrogen storage, and hydrogen charging. Major stocks related to hydrogen vehicles include Hyundai Motor, Hyundai Mobis, and Iljin Hysolus; hydrogen fuel cell-related companies include Doosan Fuel Cell, Sanga Frontech, and Kolon Industries; and hydrogen charging station-related stocks include Hyosung Heavy Industries. Recently, interest has also expanded to power equipment companies capable of converting and storing energy, such as LS Electric and Hyundai Electric. Researcher Dongheon Lee of Daishin Securities said, "As renewable energy power sources expand, demand for power equipment increases. Since renewable energy has high variability, securing safety through power equipment is important, so benefits are expected from the expansion of the hydrogen fuel market."