Sika Poised for Long-Term Structural Growth; Initiating Coverage at CHF 230

Sika is the market leader in a highly fragmented construction chemicals sector. Its one-stop shop strategy and brand reputation have helped establish close customer relationships within the construction sector, supporting its pricing power and keeping profitability relatively stable through the cycle. Established in 1910 following the invention of a waterproofing admixture for mortar, regular product innovations through formulation inventions and adaptations for local markets have been a constant theme for the business, justifying annual price increases. Approximately 25% of Sika’s sales are generated from products released during the previous five years.