Tuesday, 22 February 2022 Reading time : 3 minutes

When the global economy is humming, particularly those shares that are strongly dependent on macroeconomic changes benefit; this also includes shares from the chemical sector. Whether it is cars, food or building materials, chemicals have become indispensable in almost all products of daily life. Switzerland is home to three leading chemical companies: Sika, Clariant and Givaudan.

Sika: Sales above CHF 10 billion for the first time and improved margins
The construction and industrial chemicals group presented impressive growth figures at the beginning of the year (+17.5% sales) and, in addition to an increased EBIT margin, also presented a dividend increase from CHF 2.50 to CHF 2.90 per share. With a broad-based product portfolio and strong regional distribution systems, Sika generates above-average organic growth, while its active acquisition strategy allows the company to position itself in strategic markets. This strategy seems to be paying off; earnings estimates are being raised.

Clariant's sector focus allows strong sales growth
The specialty chemicals company is laying the foundation for sustainable sales growth by focusing on the Care Chemicals, Catalysis and Natural Resources sectors. The global economic recovery is boosting demand, and Clariant is ideally positioned in the relevant markets, even holding market leadership in some cases. The company's own sustainability program deserves special mention; the "EcoTain" label is awarded to products that demonstrate very good sustainability properties according to above-average strict criteria. In this way, Clariant contributes to the sustainability efforts of its customers.

Givaudan leads the way in flavors and fragrances
Givaudan continues to build on its existing global leadership in the flavor and fragrance industry. Especially in emerging markets with rising purchasing power, Givaudan's strong market position will enable it to exploit potential with food companies and manufacturers of personal care products. Givaudan is leveraging global trends in the food industry (such as meat substitutes) to broaden its already well-diversified business model.

ZKB Equity Research rates the shares of these companies as "overweight".

Barrier Reverse Convertible on Sika, Clariant and Givaudan (CHF)

• 9% coupon p.a.
• Defensive barrier at 60%
• 12 months
• Subscription period until March 1, 2022
• Termsheet

Callable Barrier Reverse Convertible on Sika, Clariant and Givaudan (CHF)