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>The Producer Price Index (PPI) for the 12 months to September 2023 was 2.1%, modestly above expectations and locks in a price increase of +2.1% from 1 January 2024, for ~92% of CHI's revenue.</li><li>We upgrade our earnings forecast slightly and lift our target price +2cps (+1.3%) to NZ$1.60.</li><li>We like CHI's defensive characteristics, but whilst we see good upside potential, a negative PPI adjustment for FY25 is possible based on historic trends. NEUTRAL.</li></ul>

The Producer Price Index (PPI) for the 12 months to September 2023 was 2.1%, modestly above expectations and locks in a price increase of +2.1% from 1 January 2024, for ~92% of CHI's revenue.We upgrade our earnings forecast slightly and lift our target price +2cps (+1.3%) to NZ$1.60.We like CHI's defensive characteristics, but whilst we see good upside potential, a negative PPI adjustment for FY25 is possible based on historic trends. NEUTRAL.

Channel Infrastructure - PPI Positive but Slide Yet to Bottom Out