New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Channel Infrastructure NZ Ltd / Equity Bottom-Up

<ul><li>Channel Infrastructure (CHI) revenue and earnings are closely linked to producer price index (PPI) movements, which is a negative when the PPI increase is lower than expected.</li><li>The PPI increase for the year to June 2023 was +3.0%, down from +5.2% in the March 2023 quarter and +7.7% in the December 2022 quarter.</li><li>We have lowered our September 2023 forecast -1.5pp to 2.0%, pulling back FY24 and beyond forecasts -NZ$2.1m and our target price -3cps to NZ$1.64. PPI, whilst on average higher than CPI, is more volatile. </li></ul>

Channel Infrastructure (CHI) revenue and earnings are closely linked to producer price index (PPI) movements, which is a negative when the PPI increase is lower than expected.The PPI increase for the year to June 2023 was +3.0%, down from +5.2% in the March 2023 quarter and +7.7% in the December 2022 quarter.We have lowered our September 2023 forecast -1.5pp to 2.0%, pulling back FY24 and beyond forecasts -NZ$2.1m and our target price -3cps to NZ$1.64. PPI, whilst on average higher than CPI, is more volatile. 

Channel Infrastructure - Plummeting Producers Price Index