Plenty of opportunities for Reliance

With 77% of sales outside Australia, Melbourne-founded Reliance Worldwide (ASX:RWC) is a leader in design and manufacture of water flow and control products for “behind the wall” plumbing. One of its key products is “Sharkbite”, which utilises ‘Push To Connect’ brass fittings to provide more efficient plumbing solutions for plumbers and DIY trades. The current product suite has demonstrated tremendous growth in the repair and renovate market and with a strong structural growth story behind it, we continue to see double-digit CAGR for this business. We also see additional opportunities in adjacent products. The pending launch of its patent-protected ‘EvoPEX’ later this year introduces an entirely new market opportunity for Reliance. EvoPEX is tailored for the new home build market and provides contractors with a more time efficient product that doesn’t require skilled labour for installation. EvoPex is being trialled by a number of new homebuilders in the U.S. and if successful will materially grow Reliance’s already strong market opportunities. (Matt Haupt, Portfolio Manager)