{"id":331311,"date":"2025-01-28T00:12:30","date_gmt":"2025-01-27T16:12:30","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331311"},"modified":"2025-01-28T00:12:34","modified_gmt":"2025-01-27T16:12:34","slug":"stock-in-focus-alternergy-holdings-corp-alter-28-jan-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-alternergy-holdings-corp-alter-28-jan-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Alternergy Holdings Corp. (ALTER) – 28 Jan 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ALTER<\/td><\/tr>
Company Name<\/strong><\/td>Alternergy Holdings Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>28 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1.93<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Overall, Alternergy is well-positioned to benefit from the Philippines’ renewable energy transition. With a robust pipeline, strategic partnerships, and a supportive policy environment, the company\u2019s growth trajectory looks promising.We have a Buy rating on ALTER with Target Price of PHP 1.93 per share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

For the 1st quarter (1Q) 2025, Alternergy Holdings Corporation (ALTER) reported P97.68 million in revenue, a +125% year-on-year (y\/y) increase, driven by its diversified portfolio of 11 operating assets, which include wind, solar, and run-of-river hydro facilities, with a total capacity of 86 MW. However, net income dropped to P17.45 million, reflecting heightened financing costs and capital investments.<\/p>\n\n\n\n

Gross profit margins improved to 59%, underscoring operational efficiencies as ALTER scales up its capacity. The company remains bullish on offshore wind, with the Tablas projects forming a critical part of its post-2026E pipeline, aimed at surpassing its 500 MW capacity target.<\/p>\n\n\n\n

The Philippine energy sector offers substantial growth potential as demand is expected to grow at a 6% CAGR over the next decade. Favorable programs like the GEAP provide long-term off-take agreements, which stabilize revenues for companies like ALTER. However, challenges such as regulatory hurdles, grid limitations, and competition from major players such as ACEN, FGEN, and AP remain key risks.<\/p>\n\n\n\n

ALTER boasts a strong project pipeline of over 1 GW, covering wind, solar, and hydro projects. Its strategic partnerships, including collaborations with global players like Shell, add technical expertise and financial muscle to its initiatives. Proceeds from its 2023 IPO are being deployed to fund project development and manage debt. As of 1Q25, ALTER reported total assets of P8.70bn and equity of P4.29bn, with a manageable debt-to-equity ratio of 1.03.<\/p>\n\n\n\n

Despite operating cash flow challenges due to heavy investments, the company remains focused on scaling its operations, backed by long-term debt facilities from institutions like BDO and RCBC.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>