With rising temperatures and increasingly hot summers, demand for air conditioning systems is growing worldwide. Particularly striking: in Germany, production rose by 92% in 2024, while imports reached a record level with a value of almost €1 billion. In growth markets such as India, the boom is only just beginning.
Exciting players in this trend are Carrier Global, Midea Group, $BEAN (-0.22%) - and above all $6367 (-0.58%).
Why Daikin is my favorite:
- Global market leader in air conditioning systems, strong presence in Asia, Europe and North America.
- Solid growth: Sales have increased steadily over the last three years - most recently around 4.75 trillion. JPY (+8 % YoY).
- Profit development also positive: operating profit +2.4 %, net profit +1.7 %. -> Growth potential!
- Dividend of JPY 330 (~2% yield) with stable payout history.
- Origin from Japan brings geographical diversification to the portfolio, away from classic US and European stocks.
- Valuation in the context of the megatrend: A P/E ratio of 18 seems moderate in view of the expected long-term growth in demand for air conditioning systems - the market is thus pricing in stability, but not yet the full potential of the "cooling boom".
My conclusion: Daikin combines market leadership, stable growth and international diversification - making it the most exciting stock for me to profit from the cooling boom in the long term.
The chart also shows an exciting development and so I will probably build up the first position.
