Austar Lifesciences Ltd. (6118) AI Stock Analysis

• Market Cap: HK$922.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 52.9
• Beta (1Y): 0.36
• Revenue Growth: -16.75%
• EPS Growth: N/A
• Country: HK
• Employees: 1,445
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): 0.02
• Shares Outstanding: 512,582,030
• 10 Day Avg. Volume: 2,929,800
• 30 Day Avg. Volume: 1,197,500
• PEG Ratio: 0.13
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.17
• 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: HK$0.50
• Price Target Upside: -67.32% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$2.00 ▲(30.72%Upside)

The stock score of Austar Lifesciences Ltd. is influenced primarily by its mixed financial performance, with particular concerns regarding its high P/E ratio and overbought technical indicators. While there are positive signs in profitability and cash flow, the current stock valuation and technical overbought signals suggest caution.

Austar Lifesciences Ltd. Business Overview & Revenue Model

Company Description

Austar Lifesciences Ltd. (6118) is a company involved in the life sciences sector, providing a broad range of solutions and services designed to enhance the efficiency and quality of pharmaceutical and biological production. The company offers products and services such as cleanroom and containment solutions, process and laboratory equipment, and end-to-end system solutions, catering primarily to pharmaceutical manufacturers.

How the Company Makes Money

Austar Lifesciences Ltd. generates revenue through the sale of its products and services to pharmaceutical and biotechnology companies. The company's key revenue streams include the sale of cleanroom and containment solutions, laboratory and process equipment, and comprehensive system solutions that integrate into the production processes of its clients. Significant partnerships with pharmaceutical manufacturers bolster its sales, as they provide tailored solutions that are integral to the efficient production of pharmaceuticals. The company's expertise in regulatory compliance and quality assurance further increases its value proposition to customers, helping to drive sustained revenue growth.

Austar Lifesciences Ltd. Financial Statement Overview

Summary

Austar Lifesciences Ltd. demonstrates a mixed financial performance. Improvements in net profitability and cash flow generation are positive, but challenges remain in revenue growth and operational efficiency. The balance sheet shows moderate leverage with stable equity levels, signaling a recovery trajectory that requires continued focus on cost management and revenue growth.

Income Statement

Austar Lifesciences Ltd. has shown inconsistent revenue trends, with a decline from 2022 to 2023, followed by a slight recovery in 2024. The gross profit margin for 2024 stands at 20.08%, a decrease from previous years, indicating pressure on cost management. The net profit margin improved significantly to 1.07% in 2024 from negative in 2023, suggesting cost control improvements. However, EBIT and EBITDA margins remain low, reflecting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.51 in 2024, showing a moderate leverage level. Return on Equity (ROE) improved to 2.03% in 2024 from negative in 2023, highlighting some recovery in profitability. However, the equity ratio has slightly declined to 37.97%, suggesting potential risks in financial stability.

Cash Flow

Free cash flow turned positive in 2024, a notable improvement from negative flows in previous years. The operating cash flow to net income ratio is 6.14, indicating strong cash conversion efficiency. The free cash flow to net income ratio is 6.14, showing robust cash generation relative to reported earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	1.76B	2.23B	2.02B	1.30B
Gross Profit	301.22M	336.05M	462.67M	479.01M	323.53M
EBITDA	70.71M	25.15M	166.13M	130.62M	39.83M
Net Income	16.08M	-113.47M	87.46M	277.30M	33.10M
Balance Sheet
Total Assets	2.08B	2.16B	2.39B	2.04B	1.38B
Cash, Cash Equivalents and Short-Term Investments	167.81M	173.76M	148.13M	219.74M	178.11M
Total Debt	401.95M	496.20M	336.55M	155.22M	76.47M
Total Liabilities	1.29B	1.38B	1.51B	1.26B	854.27M
Stockholders Equity	791.41M	773.01M	896.94M	786.58M	517.90M
Cash Flow
Free Cash Flow	75.72M	-133.59M	-155.25M	-204.02M	25.68M
Operating Cash Flow	98.81M	-62.65M	-37.93M	-103.45M	52.22M
Investing Cash Flow	4.43M	-54.47M	-153.14M	65.02M	-59.81M
Financing Cash Flow	-101.32M	147.12M	125.30M	59.35M	-5.51M

Austar Lifesciences Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.53
• 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 HK:6118, the sentiment is Positive. The current price of 1.53 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.73, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 92.49 is Negative, neither overbought nor oversold. The STOCH value of 87.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6118.

Austar Lifesciences Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1612	68 Neutral	HK$431.20M	6.14	12.35%	5.00%	11.56%	21.20%
Sector *	60 Neutral	HK$17.07B	6.10	-7.44%	2.88%	11.55%	-28.15%
2216	54 Neutral	HK$1.45B	―	-8.64%	―	-20.99%	45.74%
2393	51 Neutral	HK$323.82M	0.32	1417.08%	―	-20.01%	―
2170	49 Neutral	HK$768.61M	―	-18.64%	―	41.62%	-22.27%
2500	46 Neutral	HK$1.27B	―	-27.82%	―	-6.12%	0.43%
6118	46 Neutral	HK$922.65M	52.94	2.06%	―	-16.75%	―

Austar Lifesciences Ltd. Corporate Events

Austar Lifesciences Updates Risk Management Committee Terms

Austar Lifesciences Limited has announced updates to the terms of reference for its Risk Management Committee (RMC), which is a part of the company’s Board of Directors. The RMC is responsible for overseeing risk management practices and will consist of at least three members appointed by the Board. The chairman of the RMC is also appointed by the Board, and the committee has the authority to invite other directors or executives to attend meetings if their presence is deemed beneficial for fulfilling the committee’s duties. This update reflects the company’s ongoing commitment to robust governance and risk management practices, which are crucial for maintaining its operational integrity and stakeholder confidence.

Austar Lifesciences Updates Audit Committee Terms

Austar Lifesciences Limited, incorporated in the Cayman Islands, has announced an update to the terms of reference for its Audit Committee, effective from June 19, 2025. The Audit Committee will consist of at least three non-executive directors, with a majority being independent non-executive directors possessing appropriate professional qualifications or financial expertise. This update aims to enhance the governance and oversight functions of the committee, potentially strengthening the company’s compliance and financial management practices.

Austar Lifesciences Ltd. Updates Nomination Committee Terms

Austar Lifesciences Ltd. has announced the terms of reference for its Nomination Committee, which is responsible for overseeing the selection and appointment of directors. The committee will consist of at least three members, with a majority being independent non-executive directors, and will include at least one member of a different gender. This move is aimed at ensuring diversity and independence in the company’s governance structure, potentially enhancing its industry positioning and stakeholder confidence.

Austar Lifesciences Secures Unanimous Approval at AGM

Austar Lifesciences Limited, a company incorporated in the Cayman Islands, held its Annual General Meeting on May 23, 2025, where all proposed resolutions were passed by shareholders through a poll. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of the auditor, and granting of general mandates to issue and repurchase shares. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued governance and operational stability.