CITIC Securities: The summer of 2025 may be the hottest summer in the past decade, pay attention to sectors that will benefit.

CITIC Securities research report stated that the summer of 2025 may be the hottest in nearly a decade in China and even globally. In June 2025, the temperature in China broke historical records for that time period, with the first high temperature day occurring about two weeks earlier than last year. With the combined effect of the "heat dome" and global warming, abnormal high temperatures have been observed in the Northern Hemisphere. On one hand, the continued high temperatures may trigger investors' muscle memory to price prematurely, while on the other hand, typhoons and rainfall in mid-July may also bring temporary buying opportunities. CITIC Securities identified sectors that are currently benefiting: 1) Power chain: The demand for electricity increases in the summer high temperatures, along with coal costs decreasing significantly year-over-year in the second quarter. The thermal power sector is worth continuing to focus on, as the increased electricity load drives scheduling demands, benefiting smart grids as well; 2) Food and beverage: High temperatures have a certain promoting effect on the peak consumption of beer and tea beverages, while excessive rainfall has negative effects. In addition, the upgrade of Internet instant retail subsidies will benefit ready-to-drink tea brands; 3) Sunscreen and cooling products: Sunscreen products and cooling medicines directly benefit from the hot weather; 4) Air conditioning chain: It is important to prioritize refrigerants which have a logic of price increase due to limited supply, and air conditioning and refrigeration component companies should also be monitored.