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Austar Lifesciences Ltd. (HK:6118)
:6118
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Austar Lifesciences Ltd. (6118) AI Stock Analysis

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HK:6118

Austar Lifesciences Ltd.

(6118)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
HK$1.00
▼(-1.96% Downside)
Austar Lifesciences Ltd. receives a score of 52, driven primarily by its mixed financial performance and moderate valuation. While there are positive signs in profitability and cash flow, challenges in revenue growth and operational efficiency weigh on the score. Technical indicators suggest a neutral to slightly bearish outlook, further influencing the overall assessment.

Austar Lifesciences Ltd. (6118) vs. iShares MSCI Hong Kong ETF (EWH)

Austar Lifesciences Ltd. Business Overview & Revenue Model

Company DescriptionAustar Lifesciences Limited, an investment holding company, provides integrated engineering solutions to pharmaceutical manufacturers and research institutes in Mainland China and internationally. It operates through six segments: Liquid and Bioprocess System; Clean Room and Automation Control and Monitoring System; Powder and Solid System; GMP Compliance Service; Life Science Consumables; and Distribution and Agency of Pharmaceutical Equipment. The company offers liquid and bioprocess systems, including pharmaceutical water, and liquid preparation and bioprocess systems; powder and solid systems; clean utility equipment and systems; clean room, automation control, and monitor systems; and freeze-dryer, sterile filling, and visual inspection equipment. It also provides pharmaceutical process contamination control products; packaging and aseptic containment products; biosafety and lab animal equipment and consumables; laboratory one-stop solutions; and single-use bioprocess equipment and consumables. In addition, the company offers design, quality risk control, consulting, research and development support, process engineering, digitalization construction, after-sale, on-site, upgrading, relocation, and asset management services. Further, it is involved in the agency and distribution of pharmaceutical equipment, as well as provides assembly and pre-assembly services. The company was founded in 1991 and is headquartered in Shanghai, China.
How the Company Makes MoneyAustar 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 revenue growth and operational efficiency remain challenging. The balance sheet shows moderate leverage with stable equity levels, indicating a recovery trajectory but with a need for continued focus on cost management and revenue growth.
Income Statement
45
Neutral
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
52
Neutral
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.50B1.76B2.23B2.02B1.30B
Gross Profit301.22M336.05M462.67M479.01M323.53M
EBITDA70.71M25.15M166.13M130.62M39.83M
Net Income16.08M-113.47M87.46M277.30M33.10M
Balance Sheet
Total Assets2.08B2.16B2.39B2.04B1.38B
Cash, Cash Equivalents and Short-Term Investments167.81M173.76M148.13M219.74M178.11M
Total Debt401.95M496.20M336.55M155.22M76.47M
Total Liabilities1.29B1.38B1.51B1.26B854.27M
Stockholders Equity791.41M773.01M896.94M786.58M517.90M
Cash Flow
Free Cash Flow75.72M-133.59M-155.25M-204.02M25.68M
Operating Cash Flow98.81M-62.65M-37.93M-103.45M52.22M
Investing Cash Flow4.43M-54.47M-153.14M65.02M-59.81M
Financing Cash Flow-101.32M147.12M125.30M59.35M-5.51M

Austar Lifesciences Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.02
Price Trends
50DMA
1.31
Negative
100DMA
1.01
Positive
200DMA
0.86
Positive
Market Momentum
MACD
-0.05
Positive
RSI
30.33
Neutral
STOCH
11.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6118, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.31, and above the 200-day MA of 0.86, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 11.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6118.

Austar Lifesciences Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$623.49M6.9911.96%4.32%17.93%36.82%
57
Neutral
HK$1.48B-11.51-9.03%-30.60%28.61%
52
Neutral
HK$527.96M13.924.40%-2.77%
50
Neutral
HK$1.42B-2.02-32.31%-8.56%-14.84%
47
Neutral
HK$836.99M-3.25-20.74%11.43%4.88%
41
Neutral
HK$298.19M-1.70199.66%6.10%-115.12%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6118
Austar Lifesciences Ltd.
1.02
0.30
41.67%
HK:1612
Vincent Medical Holdings Limited
0.95
0.58
156.76%
HK:2170
Suzhou Basecare Medical Corp. Ltd. Class H
3.06
0.92
42.99%
HK:2216
Broncus Holding Corp.
2.84
2.30
425.93%
HK:2393
Yestar Healthcare Holdings Co Ltd
0.13
0.08
160.00%
HK:2500
Venus Medtech (Hangzhou), Inc. Class H
3.30
-2.32
-41.28%

Austar Lifesciences Ltd. Corporate Events

Austar Lifesciences Reports Increased Profits Despite Revenue Dip
Aug 26, 2025

Austar Lifesciences Ltd. announced its interim results for the six months ended June 30, 2025, showing a decrease in revenue from RMB 700,919,000 in 2024 to RMB 661,905,000 in 2025. Despite the revenue decline, the company reported a significant increase in profit before income tax, rising from RMB 9,186,000 in 2024 to RMB 30,303,000 in 2025, indicating improved operational efficiency. The profit attributable to the owners of the company also saw a substantial rise, reflecting a positive impact on the company’s financial health and potential benefits for stakeholders.

The most recent analyst rating on (HK:6118) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Austar Lifesciences Ltd. stock, see the HK:6118 Stock Forecast page.

Austar Lifesciences Updates Board of Directors and Committee Roles
Aug 26, 2025

Austar Lifesciences Limited, a company incorporated in the Cayman Islands, has announced an update to its board of directors and their roles, effective from August 26, 2025. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Ho Kwok Keung, Mars serving as the Chairman and CEO. The announcement also details the membership of five board committees, highlighting the leadership and participation of each director in these committees.

The most recent analyst rating on (HK:6118) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Austar Lifesciences Ltd. stock, see the HK:6118 Stock Forecast page.

Austar Lifesciences Ltd. Announces Executive Leadership Changes
Aug 26, 2025

Austar Lifesciences Ltd. announced a change in its executive leadership with the resignation of Mr. Chen Yuewu as an executive director and his replacement by Mr. Bian Ce. Mr. Bian, who has extensive experience in the pharmaceutical equipment industry, has been with the company since 2022 and has held senior roles, contributing significantly to the company’s growth. Despite a past legal issue regarding trade secrets, the company is confident in Mr. Bian’s leadership abilities and ethical standards, viewing his appointment as a positive step for the company’s future operations and market positioning.

The most recent analyst rating on (HK:6118) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Austar Lifesciences Ltd. stock, see the HK:6118 Stock Forecast page.

Austar Lifesciences Ltd. Schedules Board Meeting to Review Interim Results
Aug 14, 2025

Austar Lifesciences Ltd. has announced a board meeting scheduled for August 26, 2025, to review and approve the unaudited interim results for the first half of the year and consider the declaration of an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns, potentially influencing its market position and investor confidence.

Austar Lifesciences Ltd. Reports Significant Profit Growth in 2025
Jul 31, 2025

Austar Lifesciences Ltd. has announced a significant increase in profits for the first half of 2025, expecting a profit of RMB23-25 million compared to RMB5.88 million in the same period of 2024. This growth is attributed to strategic efficiency improvements and exchange gains, highlighting the company’s focus on sustainable long-term value creation.

Austar Lifesciences Updates Risk Management Committee Terms
Jun 19, 2025

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
Jun 19, 2025

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
Jun 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 17, 2025