A leader in the plumbing field

Reliance Worldwide (RWC) designs, manufactures and supplies premium branded water flow and control products for the plumbing industry. RWC has established operations in the US, Australia, UK, Canada and New Zealand, and is building a presence in Europe. RWC's products are used in residential (houses and apartments) and commercial applications (including retail and office buildings, hotels and healthcare facilities). In our view, one of RWC's key competitive advantages lies in its strong market positions, with an estimated 80% share of the brass push-to-connect (PTC) plumbing fittings category in the residential market in the US under the well-known "Sharkbite" brand. Growth opportunities include further penetration of brass PTC plumbing fittings products in the US, expansion into new markets (US construction) and global expansion. We forecast EBITDA growth of 23% in FY16 and 20% in FY17 (in line with the prospectus). We remain positive on RWC in the long term and would look to reconsider our view on share price weakness. (VIEW LINK)