Fine dust pollution business.
Korea’s worsening fine dust pollution has created unwitting beneficiaries across various industries, prompting more companies to produce goods and services that help people deal with the deteriorating air quality.
Shinyoung Securities named 21 companies in 10 industries as beneficiaries from the fine dust air pollution in South Korea.
On the list, IT firms such as LG Electronics, Coway, Winix, Dayou Winia were cited as beneficiaries on the back of the growing popularity of air purifiers.
In the automobile industry, automotive components company Motonic was a beneficiary as the government has recently decided to allow any citizen to buy LPG cars. Motonic produces LPG injectors.
Previously, only a limited number of people, including taxi drivers or the disabled, were allowed to drive LPG cars here.
In the oil industry, SK Gas was a beneficiary, given that the firm, established in 1985, has provided a stable supply of LPG, maintaining the leadership in the nation’s energy industry.
Shinyoung Securities said NeoPharm, specializing in skin care products, is also expected to benefit from the fine dust crisis as an increasing number of consumers are showing interest in skin protection.
The firm’s products include ATOPALM specialized in sensitive skin care.
In the shipbuilding industry, Sejin Heavy Industries enjoys benefits as it operates ships to transport LPG.
“The fine dust crisis has become an issue that requires prolonged discussion,” Shinyoung Securities said in a report. “Given that the government’s policy to tackle fine dust issues is still in the beginning stages, it is also necessary to pay attention to agriculture in the long term.”
Meanwhile, Hana Financial Investment expected Shinil Industrial, Kyung Dong Navien and Clean & Science to become the biggest beneficiaries amid fine dust challenges.
Shinil Industrial, an appliance manufacturer, has redoubled its efforts to supply air purifiers to schools and public offices in accordance with the government policy. The company also plans to launch large-sized air purifiers in the third quarter.
Kyung Dong Navien, which makes water heaters and gas boilers, is expected to ride high on its high-efficiency, eco-friendly condensing gas boilers as a law was passed earlier this month to make it mandatory to install eco-friendly boilers when replacing old ones and constructing new buildings. The new law takes effect in March next year.
Clean & Science produces filters for air purifiers, taking a 70 percent share in the domestic market.
“Clean & Science will be a direct beneficiary as it maintains the top position in the market of filters for air purifiers,” said Lee Jeong-ki, an analyst from Hana Financial Investment.