New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

Channel Infrastructure NZ Ltd / Equity Bottom-Up

<ul><li>Channel Infrastructure has lifted its dividend free cash flow payout ratio, delivering a 12.0cps–12.5cps FY25 dividend, coinciding with a strong PPI print for March 2025.</li><li>The target price has increased by 8% to NZ$2.32, with an OUTPERFORM rating maintained, due to strong earnings and higher dividends.</li><li>The company is viewed as a low-risk investment with a large portion of revenue fixed, and future leverage increases are being considered.</li></ul>

Channel Infrastructure has lifted its dividend free cash flow payout ratio, delivering a 12.0cps–12.5cps FY25 dividend, coinciding with a strong PPI print for March 2025.The target price has increased by 8% to NZ$2.32, with an OUTPERFORM rating maintained, due to strong earnings and higher dividends.The company is viewed as a low-risk investment with a large portion of revenue fixed, and future leverage increases are being considered.

Channel Infrastructure - Leverage Pays Dividends

<ul><li>Channel Infrastructure reported flat 1Q25 throughput volumes, slightly below last year due to 2024 being a leap year.</li><li>The Government confirmed an increase in diesel stock-holding requirements, positioning CHI to supply much of the additional storage needed.</li><li>CHI's earnings remain attractive due to defensive earnings, cash dividend yield, and potential from repurposing ex-refinery land.</li></ul>

Channel Infrastructure reported flat 1Q25 throughput volumes, slightly below last year due to 2024 being a leap year.The Government confirmed an increase in diesel stock-holding requirements, positioning CHI to supply much of the additional storage needed.CHI's earnings remain attractive due to defensive earnings, cash dividend yield, and potential from repurposing ex-refinery land.

Channel Infrastructure - 1Q25 Op Stats—Diesel Interest Piqued

<ul><li>Channel Infrastructure (CHI) achieved what all low risk businesses should—a no-surprise result.</li><li>Earnings, dividend and guidance were all consistent with our expectations heading into the result.</li><li>Updates on the development potential at the site were encouraging, and the investment thesis remains unchanged. </li></ul>

Channel Infrastructure (CHI) achieved what all low risk businesses should—a no-surprise result.Earnings, dividend and guidance were all consistent with our expectations heading into the result.Updates on the development potential at the site were encouraging, and the investment thesis remains unchanged. 

Channel Infrastructure - Pipes Flowing Well—FY24 Result

<ul><li>We reinstate our coverage of Channel Infrastructure (CHI) with an OUTPERFORM rating and a target price of NZ$2.13, both are upgrades from pre-equity raise.</li><li>CHI is uniquely placed to be the site for the development of sustainable aviation fuel (SAF) or other future fuels.</li><li>In our view, it is a matter of when, not if, a future fuels project chooses Marsden Point, given its natural advantages over greenfield alternatives. </li></ul>

We reinstate our coverage of Channel Infrastructure (CHI) with an OUTPERFORM rating and a target price of NZ$2.13, both are upgrades from pre-equity raise.CHI is uniquely placed to be the site for the development of sustainable aviation fuel (SAF) or other future fuels.In our view, it is a matter of when, not if, a future fuels project chooses Marsden Point, given its natural advantages over greenfield alternatives. 

Channel Infrastructure - It's a Matter of When, Not If

<ul><li>Channel Infrastructure (CHI) is raising ~NZ$50m through a 1 for 12.12 underwritten pro-rata accelerated renounceable entitlement offer.</li><li>The offer price is NZ$1.60, which is a -10.1% discount to the Friday, 22 November 2024 closing price, and -9.4% discount to the theoretical ex-rights price of NZ$1.77.</li><li>There are institutional and retail components to the capital raise. </li></ul>

Channel Infrastructure (CHI) is raising ~NZ$50m through a 1 for 12.12 underwritten pro-rata accelerated renounceable entitlement offer.The offer price is NZ$1.60, which is a -10.1% discount to the Friday, 22 November 2024 closing price, and -9.4% discount to the theoretical ex-rights price of NZ$1.77.There are institutional and retail components to the capital raise. 

Channel Infrastructure - Capitalising on Opportunity

New Zealand

Channel Infrastructure NZ Limited operates a fuel infrastructure company. The Company owns and operates a petroleum pipeline from the refinery to a terminal at Marsden Point, in Northland. Channel Infrastructure produces motor gasoline, automotive and diesel fuels, aviation jet fuel, light and heavy fuel oils, and bitumen.

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Channel Infrastructure NZ Ltd (CHI NZ)

Channel Infrastructure - Leverage Pays Dividends

Channel Infrastructure has lifted its dividend free cash flow payout ratio, delivering a 12.0cps–12.5cps FY25 dividend, coinciding with a strong...

Forsyth Barr

Channel Infrastructure - 1Q25 Op Stats—Diesel Interest Piqued

Channel Infrastructure reported flat 1Q25 throughput volumes, slightly below last year due to 2024 being a leap year. The Government confirmed an...

Forsyth Barr

Channel Infrastructure - Pipes Flowing Well—FY24 Result

Channel Infrastructure (CHI) achieved what all low risk businesses should—a no-surprise result. Earnings, dividend and guidance were all consistent...

Forsyth Barr

Channel Infrastructure - It's a Matter of When, Not If

We reinstate our coverage of Channel Infrastructure (CHI) with an OUTPERFORM rating and a target price of NZ$2.13, both are upgrades from pre...

Forsyth Barr

Channel Infrastructure - Capitalising on Opportunity

Channel Infrastructure (CHI) is raising ~NZ$50m through a 1 for 12.12 underwritten pro-rata accelerated renounceable entitlement offer.

Forsyth Barr

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