Should I buy Channel Infrastructure NZ stock in 2025?

What is Channel Infrastructure NZ?

How much is the Channel Infrastructure NZ stock?

The price of Channel Infrastructure NZ stock is rising this week. As of now, CHI.NZ trades at NZD 2.13, gaining 2.90% over the past 24 hours and showing an impressive 12.11% increase for the week. The company holds a market capitalisation of NZD 873.3 million with an average three-month trading volume of 1.36 million shares.

Its price-to-earnings (P/E) ratio stands at 30.43, offering a dividend yield of 5.30%, while the stock’s beta is low at 0.10, reflecting minimal volatility. This stability, coupled with strong recent momentum and a steady yield, may appeal to NZ investors seeking defensive growth opportunities.

Our full analysis on the Channel Infrastructure NZ stock

Having carefully reviewed Channel Infrastructure NZ's latest annual financial results alongside its impressive stock price momentum over the past three years, we undertook a comprehensive analysis powered by our proprietary screening algorithms—synthesizing key financial ratios, technical trends, and competitive benchmarking across the infrastructure and energy sector. This thorough approach highlights a unique asymmetry in Channel Infrastructure NZ's risk-reward profile, spotlighting significant institutional confidence and robust structural advantages. So, why might Channel Infrastructure NZ Limited (CHI.NZ) yet again be positioned as a strategic entry point into New Zealand’s essential infrastructure segment as we look toward 2025?

Recent Performance and Market Context

Channel Infrastructure NZ has demonstrated exemplary stock price strength, advancing 35.67% over the last twelve months (NZD 2.13 as of 30 May 2025), significantly outperforming both local indices and global infrastructure peers. Noteworthy is the stock’s +19.66% gain over the past six months and a sharp 12.11% appreciation within just one week—fuelled by supportive macroeconomic signals and a sector-wide re-rating of critical infrastructure assets.

Positive tailwinds include:

• Government Support: In February 2025, the government provided explicit backing for the Marsden Point Energy Precinct project and is considering special economic zone status, substantially enhancing the company’s long-term growth tableau.
• Aviation Recovery and Fuel Demand: Channel Infrastructure is directly exposed to the recovery in volume-driven end markets. Notably, aviation fuel throughput expanded by 12% in 2024, reflective of a broader resurgence in travel and logistics.
• Resilient Demand Despite Energy Transition: While New Zealand advances its energy transition, the secular need for robust fuel import and storage infrastructure remains non-cyclical—ensuring demand stability for Channel Infrastructure’s core services.

This context underscores the market’s renewed appreciation for “hard assets” with recurring revenues, and Channel Infrastructure’s sector dominance places it at the centre of capital flows seeking defensive, yield-oriented exposure in a low-volatility framework.

Technical Analysis

Technically, Channel Infrastructure NZ’s share price is currently challenging 52-week highs (NZD 2.13), mere cents below the fresh resistance at NZD 2.14. The transition of NZD 2.07 from resistance into a new support zone represents a pivotal structural development, suggesting buyers are increasingly willing to defend elevated price levels.

• RSI: The 14-day Relative Strength Index stands at 70.01, officially in overbought territory—a testament to strong upward momentum, albeit signaling the potential for a short-term consolidation or technical pause. Importantly, prior episodes of overbought RSI in this name have historically preceded only minor retracements before continuation of the uptrend.
• Volume Trends: Sustained volumes averaging 1.36 million shares underline broad participation and robust investor appetite, typically a prerequisite for enduring price appreciation.
• Moving Averages & Market Structure: With price action consistently above key moving averages and a bullish trend intact, Channel Infrastructure appears primed for a structural breakout should near-term resistance be surpassed.

While short-term traders may exercise caution given the overbought signal, medium-term momentum remains distinctly positive, and any modest consolidation may act as a platform for renewed buying pressure.

Fundamental Analysis

Fundamentally, Channel Infrastructure NZ occupies a unique space within New Zealand's corporate landscape—combining monopoly-like positioning, visible revenue streams, and an attractive dividend yield.

Key Highlights:

• Revenue and Growth: 2024 revenues reached NZD 139.8 million, up 7% year-on-year. This top-line expansion was achieved despite a challenging macroeconomic background, underscoring strong contract execution and secular demand for storage and import infrastructure.
• Profitability Dynamics: Net profit was NZD 13.89 million, reflecting a 42.29% decline, influenced primarily by increased depreciation and financing costs associated with recent growth investments—temporary factors widely anticipated by the market.
• Valuation: Trading at a P/E of 30.43, the market is pricing in both the company’s near-term defensive attributes and its longer-term optionality. The dividend yield stands at an attractive 5.30%, and the stock offers a rare combination of growth, income, and safety (with a beta of just 0.10).
• Structural Strengths: Channel Infrastructure’s effective monopoly on New Zealand fuel imports is supported by multi-decade, inflation-linked contracts with BP, Z Energy, and Mobil—establishing high barriers to entry and granting extraordinary earnings visibility. Furthermore, recent long-term storage contracts worth NZD 120 million in 2024 bolster both cash flow predictability and expansion potential.
• Strategic Vision: The company’s Marsden Point development strategy is aligned with New Zealand’s ongoing energy security and resilience efforts. As the country’s principal import terminal, Channel Infrastructure is uniquely placed to benefit from both traditional fuel demand and emerging green fuel opportunities as part of a well-managed energy transition.

With its powerful blend of growth levers, entrenched strategic position, and disciplined capital allocation, the underlying fundamentals fully justify renewed interest at current price levels.

Volume and Liquidity

One of the notable signals of investor confidence is the sustained liquidity profile of Channel Infrastructure NZ:

• Trading Volumes: The daily average volume (1.36 million shares) is well in excess of peer benchmarks on the NZX, facilitating efficient entry and exit for both retail and institutional participants.
• Stable Ownership Structure: The free float (83% of shares in public hands) is split between ~48% individual investors and ~35% institutions, ensuring a healthy mix of stable long-term holders and price-responsive participants.
• Liquidity and Valuation Dynamics: Such active trading not only minimises volatility (supported by the remarkably low beta of 0.10) but historically correlates with periods of dynamic valuation re-rating—especially ahead of major corporate or macro catalysts.

High and sustained volumes often precede durable price appreciation, and Channel Infrastructure’s robust liquidity profile appears well-suited for the needs of sophisticated market participants.

Catalysts and Positive Outlook

A raft of structural and event-driven catalysts underscore the positive outlook for Channel Infrastructure NZ heading into H2 2025 and beyond:

• Marsden Point Energy Precinct: Development of 120 hectares at Marsden Point, with governmental backing, could unlock new revenue streams from energy storage, alternative fuels, and “future-proofed” logistics facilities—potentially re-rating earnings and asset values.
• Demand Growth: National forecasts project an incremental 2.3 billion litres in fuel demand over the next 26 years, directly underpinning Channel’s storage and handling revenues.
• Aviation Recovery: The ongoing uptick in aviation activity—already manifest in a 12% y-o-y surge in aviation fuel throughput—positions Channel as a prime beneficiary of both cyclical travel recovery and long-term population growth.
• Contract Wins and Financial Flexibility: The 2024 execution of NZD 120 million in storage contracts, successful debt refinancing, and a recent NZD 50 million equity raise have materially de-risked the company’s balance sheet and enabled investment in high-return projects.
• Government Alignment: Explicit government recognition of Channel’s role in national energy security augurs well for future regulatory and capital support—an element notably absent from many other listed infrastructure names.
• ESG and Energy Transition: Although long-term risk remains from electrification of transport and renewables, Channel’s proactive positioning as a national logistics and energy hub provides a credible pathway to evolve with the country’s changing energy mix.

These themes place Channel Infrastructure at the crossroads of structural growth and defensive utility, further augmented by actively managed capital and regulatory tailwinds.

Investment Strategies

Given the convergence of technical, fundamental, and macroeconomic positives, Channel Infrastructure NZ appears attractively positioned across multiple time horizons.

Short-Term:

• The recent rally brings the share price to a minor technical overextension; however, historical buy zones have materialised on modest pullbacks to support (currently NZD 2.07).
• Short-term oriented investors may view periods of consolidation as optimal windows to initiate or augment positions, particularly ahead of major results (next due in late August 2025).

Medium-Term:

• Strong medium-term structure is underpinned by expanding volume, robust dividend support, and visible contract-driven revenue.
• Approaching the next phase of Marsden Point development or additional contract announcements could represent significant price inflection points—suggesting that positioning ahead of such catalysts is prudent.

Long-Term:

• The stock’s defensive characteristics, combined with growth projects and high barriers to entry, lend themselves to a “buy and hold” strategy.
• Yield-seeking investors benefit from an above-market 5.30% dividend, while growth investors enjoy exposure to secular infrastructure expansion and the optionality provided by energy market evolution.

Collectively, the technical low established above NZD 2.07 and proximity to critical strategic catalysts suggest an ideal entry point for a broad range of investment mandates.

Is it the Right Time to Buy Channel Infrastructure NZ?

In summary, Channel Infrastructure NZ combines an exceptional set of strengths rarely seen in a single NZX-listed company: essential “national infrastructure” status, durable and growing cash flows, government and market validation, and a disciplined growth strategy targeting both classic and future-facing sectors. Its defensive profile—bolstered by a steady yield, impressive liquidity, and monopolisitic contract structure—renders it a compelling option at current prices, particularly for those seeking a blend of resilience and upside in a low-volatility market segment.

While the ongoing energy transition presents a long-term challenge, Channel Infrastructure’s adaptability, visible project pipeline, and alignment with New Zealand’s security priorities all point to further outperformance ahead. With attractive technical setup, a pipeline of growth catalysts, and a powerful long-term narrative, the stock seems poised to enter a new bullish phase—making it a name serious NZ investors will want to consider closely as part of a diversified infrastructure allocation.

As 2025 approaches, Channel Infrastructure NZ’s blend of yield, growth, and scarcity value stands out—with all the hallmarks of a resilient opportunity for those looking to align their portfolios with the foundational assets shaping New Zealand’s economic future.

How to buy Channel Infrastructure NZ stock in New Zealand?

Here’s a clear and practical guide for New Zealand retail investors on how to buy Channel Infrastructure NZ (CHI.NZ) stock online:

Buying Channel Infrastructure NZ shares online is both straightforward and secure when you use a regulated broker approved for New Zealand investors. You have two main options: spot (cash) buying, where you actually own the shares, and CFD trading, which allows speculation on price movements without direct ownership. Each method suits different investment goals, risk levels, and trading styles. To help you choose the best broker for your needs, you’ll find a detailed brokerage comparison further down this page.

Cash buying

A cash purchase means you buy Channel Infrastructure NZ shares outright and become a part-owner of the company. Your shares are held in your name, and you’re entitled to dividends and voting rights. Most NZ brokers charge a fixed commission per transaction—commonly around NZD 5 to NZD 15 per order.

Important information

Example: With a current price of NZD 2.13 per share, if you invest NZD 1,000 (minus an estimated NZD 5 brokerage fee), you can buy approximately 466 shares (NZD 995/2.13 ≈ 466).

Important information

✔️ Gain scenario: If the share price rises by 10%, your shares would now be worth about NZD 1,100.
Result: +NZD 100 gross gain, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on the price movement of Channel Infrastructure NZ shares without owning them. You can use leverage to increase your market exposure with a smaller initial capital. Fees generally include a spread (the difference between buy and sell price) and overnight financing charges if you hold positions for more than a day.

Important information

Example: Suppose you open a CFD position on CHI.NZ with NZD 1,000 and 5x leverage. This means you have exposure worth NZD 5,000.

Important information

✔️ Gain scenario: If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: +NZD 400 gain, on a €1,000 outlay (excluding spread and overnight fees).

Final advice

Before you invest, always compare brokers’ fees, trading conditions, safety of funds, and available features. Which approach is best—spot buying or CFD trading—depends on your investment goals, risk tolerance, and trading style. For more details and to find the best fit for you, check out our broker comparison table below. Investing can be rewarding and accessible when you understand your options and choose wisely.

Our 7 tips for buying Channel Infrastructure NZ stock

The latest news about Channel Infrastructure NZ

Channel Infrastructure NZ stock surged 12.1% this week, nearing its 52-week high and registering strong investor demand. This significant rally has propelled the share price to NZD 2.13, almost reaching the resistance of NZD 2.14, and reflects robust market sentiment backed by recent business developments and broader investor confidence. The average daily trading volume remains healthy at 1.36 million shares, and technical indicators such as an RSI of 70.01 confirm that the stock is currently in an overbought zone, suggesting strong short-term momentum and renewed local investor interest.

Channel Infrastructure NZ confirmed stable revenue growth of 7% for 2024, matching financial expectations despite a decline in net profit. The company reported NZD 139.8 million in revenue (+7% year-on-year), with a net profit of NZD 13.89 million, reflecting the impact of higher depreciation and financing costs but still aligning with market forecasts. This consistency strengthens the company’s standing among conservative investors looking for stable utility-like returns within the New Zealand market, especially given its critical infrastructure status and reliable long-term contracts with major fuel companies.

The company’s dividend yield is attractive at 5.3%, supported by a confirmed payment of NZD 0.11 per share. With a beta of 0.10, Channel Infrastructure NZ demonstrates very low volatility, enhancing its appeal as a defensive income stock. The stock is also eligible for New Zealand imputation credits, making it especially attractive for resident investors seeking both yield and tax efficiency in their portfolios.

Channel Infrastructure NZ secured NZD 120 million in long-term fuel storage contracts and completed a successful NZD 50 million refinancing round. These recent strategic achievements bolster the company’s balance sheet, ensure steady recurring cash flows, and provide financial flexibility for future growth initiatives, notably the planned expansion at Marsden Point. The strength of these new contracts with key industry players underscores Channel Infrastructure’s de facto monopoly and its critical service for New Zealand’s energy supply chain.

Recent accelerated progress at Marsden Point, with government support for the Energy Precinct project, positions Channel Infrastructure for future growth. Government backing to develop Marsden Point as a national energy hub and the opportunity to create a dedicated economic zone further entrench the company’s strategic relevance. Notably, this initiative is tailored to address New Zealand’s long-term energy security and transition needs, while immediate sectoral tailwinds such as a 12% increase in local aviation fuel demand in 2024 also point towards continued revenue expansion.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.