Otec, known for its Carrier air conditioning brand, saw its Korean stocks rise 19.95% over the past three months as the company expanded into heat pump and data center liquid cooling technologies. The stock performance contrasted sharply with competitors Paseco and Winix, whose Korean stocks fell 18.61% and 37.12% respectively during the same period. Otec Carrier, the company's subsidiary, launched an integrated heat pump boiler last month on the 16th, aligning with government policies promoting electrified heating. Securities analysts attribute the divergence to Otec's business diversification strategy, which positions heat pumps as a mid-to-long-term growth driver and targets next-generation AI data center cooling systems. The company operates a holding structure centered on Otec Carrier and Otec Otis Parking System since acquiring Carrier Air Conditioner in 2011.
Otec Korean Stocks Outperform Competitors Over Three Months
According to the Korea Exchange, Otec's stock price increased 19.95% over the past three months. During the same period, Paseco's stock declined 18.61%, Winix dropped 37.12%, and fan manufacturer Shinil Electronics fell 23.04%. Securities industry analysts identified Otec's business diversification efforts as the key factor differentiating its stock performance from air conditioning and dehumidifier sector peers ahead of the heatwave and rainy season.
Otec Carrier Expands Heat Pump Product Lineup
Otec Carrier designated heat pumps as a mid-to-long-term growth driver alongside air conditioning and HVAC systems, expanding its lineup to include heat pump boilers and chillers. Advanced economies including the United States position heat pumps as core technology for building and industrial decarbonization. The Korea Institute of Machinery projects the global heat pump market will grow from $75.8 billion (approximately 114.47 trillion won) in 2024 to $162.6 billion by 2030.
Otec Carrier Develops Liquid Cooling System for NVIDIA Data Centers
The shift in next-generation AI data center cooling methods from building-scale chiller plants to liquid cooling systems represents a positive factor for Otec. NVIDIA recently formalized the application of 45℃ supply water-based direct liquid cooling (DLC) to its next-generation data center graphics processing unit (GPU) 'Vera Rubin.' Otec Carrier's CDU (Coolant Distribution Unit) 655LL system is expected to enter NVIDIA's 'MP (Marketplace) Ready' stage as early as next month, raising commercialization expectations.
Analyst Highlights Data Center Cooling as Structural Growth Factor
Lee Jun-seok, a researcher at Hanyang Securities, stated, "If heatwaves and heat pumps have highlighted Otec's performance, data center liquid cooling will become a structural variable that changes Otec's valuation." The analyst noted that the CDU 655LL system's potential entry into NVIDIA's marketplace preparation stage could elevate the company's enterprise value beyond its traditional air conditioning business.
FAQ
What caused Otec Korean stocks to rise 19.95% over three months?
Otec's stock increase resulted from the company's business diversification into heat pump technology and data center liquid cooling systems. The performance contrasted with competitors Paseco and Winix, whose stocks fell 18.61% and 37.12% respectively during the same period, according to the Korea Exchange.
What is Otec Carrier's CDU 655LL system?
The CDU 655LL is a coolant distribution unit developed by Otec Carrier for data center liquid cooling applications. The system is expected to enter NVIDIA's 'MP Ready' stage as early as next month, positioning it for use with NVIDIA's next-generation 'Vera Rubin' GPU that uses 45℃ direct liquid cooling technology.
How large is the global heat pump market projected to become?
According to the Korea Institute of Machinery, the global heat pump market is projected to grow from $75.8 billion (approximately 114.47 trillion won) in 2024 to $162.6 billion by 2030. Advanced economies including the United States view heat pumps as core technology for building and industrial decarbonization.
