North American Condensing Water Heater Market Share No.1
Stable Growth Continues in Line with Decarbonization Policy
Expansion of New Growth Engines with Full-Scale Sales of New Products Next Year
Kyungdong Navien has reached an all-time high stock price. Heating products, including condensing water heaters, are steadily growing in the North American market. While sales are increasing steadily, expectations from new product launches are driving up the company's value.
According to the financial investment industry on the 16th, Kyungdong Navien's stock price has risen 81% this year. Considering that the KOSPI fell about 1% during the same period, the market-relative return is 82 percentage points (P). During the previous day's trading, the stock price rose to 87,100 KRW at one point, setting a new all-time high. The market capitalization exceeded 1.2 trillion KRW.
Kyungdong Navien is a company that manufactures home boilers and water heaters. As of the first half of this year, sales are divided into 41% boilers, 49% water heaters, and 11% other products and goods. The company has also expanded into China, the United States, and Russia. It is increasing sales in the North American market by focusing on high-efficiency boilers and water heaters. In addition to existing condensing boilers, it is expanding its business area into the heating, ventilation, and air conditioning (HVAC) market. In the first half of this year, it recorded sales of 631 billion KRW and operating profit of 62 billion KRW, up 15.4% and 26.5%, respectively, compared to the same period last year.
Kyungdong Navien is the number one company with a 30-40% market share in the North American condensing water heater market. Condensing water heaters have higher thermal efficiency than conventional water heaters, resulting in significant energy savings. The company secures price competitiveness compared to competitors by sourcing key components through subsidiaries. Kim Suhyun, a researcher at DS Investment & Securities, analyzed, "The average selling price of local U.S. companies is $4,000 to $5,000," and "Kyungdong Navien's selling price is about 60% of the local companies' average."
While sales of condensing water heaters are steadily increasing, Kyungdong Navien is preparing to launch new products. Starting next year, it will officially sell the 'Condensing Hydro Furnace.' The condensing hydro furnace is a home heating device that heats water and supplies warm air. Researcher Kim explained, "Existing heating systems in the U.S. dry out the air and pose risks of gas leaks such as carbon monoxide poisoning," adding, "The condensing hydro furnace provides warm, moist air." The condensing hydro furnace is expected to become a new growth engine for Kyungdong Navien as it overcomes the shortcomings of U.S. heating systems and aligns with decarbonization policy directions.
Entry into the HVAC market is also an expected growth factor. The company has secured a portfolio related to ventilation through its entry into the air conditioner business, heat pump launches, and ventilation purifiers. It is expanding its comprehensive indoor air quality business by integrating ventilation purifier technology with kitchen appliances.
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