Alpha HPA Limited (A4N) AI Stock Analysis

• Market Cap: AU$1.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 173.87%
• EPS Growth: -27.93%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 1,137,002,300
• 10 Day Avg. Volume: 2,565,042
• 30 Day Avg. Volume: 1,891,324
• PEG Ratio: 1.59
• Price to Book (P/B): 4.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.00
• Price Target Upside: 112.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: AU$1.00 ▲(6.38%Upside)

Alpha HPA Limited's overall stock score is primarily impacted by its financial performance and valuation. The company faces ongoing losses and cash flow challenges, which are significant risks. Technical analysis provides a neutral outlook, and the lack of profitability is a concern from a valuation standpoint.

Alpha HPA Limited Business Overview & Revenue Model

Company Description

Alpha HPA Limited engages in the evaluation, exploration, and development of mineral properties. It primarily explores for high purity alumina (HPA) deposits. The company holds interest in the HPA First project located in Gladstone, Queensland. It also offers HPA and related products for use in the lithium-ion battery and light emitting diode lighting markets. The company was formerly known as Collerina Cobalt Limited and changed its name to Alpha HPA Limited in November 2018. Alpha HPA Limited was incorporated in 2003 and is headquartered in Sydney, Australia.

How the Company Makes Money

Alpha HPA Limited generates revenue primarily through the production and sale of high-purity alumina products. The company's revenue model is centered around the commercial supply of HPA to industries that require high-quality alumina for manufacturing processes. Key revenue streams include sales contracts with manufacturers in the LED lighting, electronics, and electric vehicle sectors. Additionally, the company may engage in strategic partnerships and collaborations with other firms or research institutions to enhance its product offerings and expand its market reach. Factors contributing to its earnings include advancements in production technology, increasing demand for HPA in various applications, and the company's ability to scale its operations efficiently.

Alpha HPA Limited Financial Statement Overview

Summary

Alpha HPA Limited is experiencing growth in revenue but faces significant operational and cash flow challenges, leading to consistent losses. The company does have a strong balance sheet with substantial cash reserves, which provides some financial stability.

Income Statement

Alpha HPA Limited has consistently shown negative net income over the years, with a net loss that has been increasing, from -$9.35M in 2020 to -$24.98M in 2024. Despite an increase in total revenue from $16.15k in 2023 to $44.05k in 2024, the gross profit remains negative, leading to negative gross profit margins. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.

Balance Sheet

The company maintains a strong cash position, with $189.6M in cash and equivalents as of 2024, significantly higher than its total liabilities of $20.12M. The debt-to-equity ratio remains low, and the equity ratio is relatively high, suggesting a solid financial structure. However, the persistent negative net income affects the return on equity, which remains negative.

Cash Flow

Alpha HPA Limited has negative free cash flow, which worsened from -$35.5M in 2023 to -$47.75M in 2024. The operating cash flow is also negative, although the company raised a substantial amount of cash through financing activities. The free cash flow to net income ratio is negative, reflecting cash flow challenges despite the capital raised.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	44.05K	16.15K	38.74K	0.00	0.00
Gross Profit	-8.98M	-983.56K	-141.27K	-47.19K	-1.15K
EBITDA	-21.59M	-16.26M	-14.23M	-17.12M	-9.54M
Net Income	-24.98M	-15.68M	-7.36M	-16.27M	-9.35M
Balance Sheet
Total Assets	267.30M	67.11M	54.56M	51.97M	11.02M
Cash, Cash Equivalents and Short-Term Investments	189.62M	20.59M	16.83M	50.34M	7.98M
Total Debt	3.69M	338.81K	537.59K	56.61K	0.00
Total Liabilities	20.12M	11.10M	7.69M	1.69M	586.07K
Stockholders Equity	247.17M	56.02M	46.87M	50.28M	10.98M
Cash Flow
Free Cash Flow	-47.75M	-35.50M	-34.95M	-8.36M	-5.77M
Operating Cash Flow	-22.42M	-11.29M	-3.76M	-1.63M	-399.31K
Investing Cash Flow	-25.13M	-8.00M	-31.14M	-6.71M	-5.29M
Financing Cash Flow	216.58M	23.07M	1.39M	50.80M	12.97M

Alpha HPA Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:A4N, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.90, above the 50-day MA of 0.88, and above the 200-day MA of 0.90, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 81.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:A4N.

Alpha HPA Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIS	58 Neutral	AU$203.34M	8.43	8.30%	―	-7.16%	―
MMI	53 Neutral	AU$420.77M	―	-87.03%	―	30.32%	-22.58%
LOT	48 Neutral	AU$462.51M	―	-15.51%	―	―	-129.85%
A4N	45 Neutral	AU$1.07B	―	-20.07%	―	173.87%	-27.93%
Sector *	44 Neutral	C$979.11M	-6.82	-13.73%	1.75%	17.37%	-32.84%
IPX	38 Underperform	AU$2.03B	―	-38.95%	―	―	-16.77%
CAY	26 Underperform	AU$437.27M	―	-33.55%	―	―	-175.00%

Alpha HPA Limited Corporate Events

Alpha HPA Limited Issues Performance Rights to Employees

Alpha HPA Limited announced the issuance of 1,080,000 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to align employee performance with shareholder interests, potentially enhancing operational efficiency and market competitiveness.

The most recent analyst rating on (AU:A4N) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Alpha HPA Limited stock, see the AU:A4N Stock Forecast page.

Alpha HPA Advances HPA First Project Amid Rising Semiconductor Demand

Alpha HPA Limited announced significant progress in its HPA First Project Stage 2, with major civil works contracts issued and construction underway. The company is experiencing strong demand from the semiconductor sector, driven by AI and data center growth, with over 360 orders since May 2024. The company is also expanding its Letters of Intent, covering 63% of Stage 2 production, and has recorded its first sapphire wafer sales as part of semiconductor qualification. These developments position Alpha HPA as a key player in the high purity aluminium materials market, with potential implications for increased market share and stakeholder engagement.

The most recent analyst rating on (AU:A4N) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Alpha HPA Limited stock, see the AU:A4N Stock Forecast page.

Alpha HPA Limited Issues New Shares to Strengthen Capital Base

Alpha HPA Limited has issued 626,604 fully paid ordinary shares, with a portion resulting from the cashless conversion of options and the remainder issued to employees for services rendered. This issuance was conducted without disclosure under the Corporations Act, and the company confirms compliance with relevant legal provisions, indicating a strategic move to strengthen its capital base and reward its employees, potentially enhancing its market position.

Alpha HPA Limited Announces Director’s Interest Changes

Alpha HPA Limited has announced a change in the director’s interest notice for Norman Seckold, Rob Williamson, and Rimas Kairaitis, as per the ASX listing rule 3.19A. This update reflects changes in the securities held by the directors, which may influence the company’s governance and shareholder dynamics.

Alpha HPA Limited Announces Quotation of New Securities on ASX

Alpha HPA Limited has announced the quotation of 626,604 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code A4N. This move signifies the company’s ongoing efforts to enhance its financial flexibility and market presence, potentially impacting its operational capabilities and stakeholder interests positively.

Alpha HPA Advances HPA First Project and Expands Market Reach

Alpha HPA Limited announced significant progress in the development of its HPA First Project Stage 2, which aims to become the world’s largest single site for high purity aluminium materials production. The company has completed key infrastructure developments, including a 66KVa powerline, and is advancing engineering and fabrication efforts. The semiconductor sector’s demand is driving product marketing, with letters of intent covering over 60% of Stage 2 production. Additionally, Alpha HPA is expanding its sapphire wafering capabilities and has initiated a concept study for product mix optimization with Orica in Canada. Leadership changes have been made to support the company’s growth ambitions.