Austar Lifesciences Ltd. (6118) AI Stock Analysis

• Market Cap: HK$553.59M
• Dividend Yield: N/A
• Average Volume (3M): 695.30K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.71
• Revenue Growth: -2.77%
• EPS Growth: N/A
• Country: HK
• Employees: 1,445
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.05
• Shares Outstanding: 512,582,030
• 10 Day Avg. Volume: 1,360,300
• 30 Day Avg. Volume: 695,300
• PEG Ratio: -0.15
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 3.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$1.00 ▲(3.09% Upside)

Austar Lifesciences Ltd. receives an overall score of 52, driven primarily by its mixed financial performance and reasonable valuation. The stock's technical indicators suggest weak momentum, which impacts its attractiveness. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Improvement

Positive free cash flow indicates improved financial health, allowing Austar Lifesciences to reinvest in growth opportunities and reduce debt.

Profitability Recovery

Improved net profit margin highlights better cost control and operational efficiency, enhancing long-term profitability prospects.

Strong Cash Conversion

High cash conversion efficiency suggests Austar Lifesciences effectively turns earnings into cash, supporting sustainable operations and growth.

Negative Factors

Revenue Decline

Declining revenue growth signals potential challenges in market demand or competitive positioning, which could hinder long-term expansion.

Operational Efficiency Challenges

Low EBIT and EBITDA margins suggest inefficiencies in operations, potentially limiting profitability and competitiveness in the market.

Equity Ratio Decline

A declining equity ratio may indicate increased financial risk, potentially affecting Austar Lifesciences' ability to finance future growth.

Austar Lifesciences Ltd. Business Overview & Revenue Model

Company Description

Austar Lifesciences Ltd. (6118) is a biotechnology company based in Australia, specializing in the development and commercialization of innovative therapeutic solutions for various medical conditions. The company operates primarily in the life sciences sector, focusing on drug discovery and development, with a strong emphasis on biologics and novel drug delivery systems. Its core products include proprietary pharmaceutical formulations and technologies aimed at enhancing treatment efficacy and patient outcomes.

How the Company Makes Money

Austar Lifesciences Ltd. generates revenue through multiple streams, primarily from the sale of its developed pharmaceutical products and licensing agreements with other biotech firms and pharmaceutical companies. The company invests significantly in research and development to create innovative therapies, which are then patented and licensed out, providing a continuous revenue flow. Additionally, strategic partnerships with research institutions and industry leaders enhance its product pipeline and market reach, further contributing to its earnings. The company may also explore government grants and funding for specific projects, bolstering its financial resources.

Austar Lifesciences Ltd. Financial Statement Overview

Summary

Austar Lifesciences Ltd. shows mixed financial performance with improvements in net profitability and cash flow generation. However, challenges in revenue growth and operational efficiency persist. The balance sheet indicates moderate leverage with stable equity levels, suggesting a recovery trajectory but a need for 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.50B	1.76B	2.16B	2.02B	1.30B
Gross Profit	294.94M	301.22M	336.05M	488.80M	479.01M	323.53M
EBITDA	72.28M	70.71M	25.15M	159.79M	130.62M	39.83M
Net Income	35.20M	16.08M	-113.47M	87.46M	277.30M	33.10M
Balance Sheet
Total Assets	2.03B	2.08B	2.16B	2.39B	2.04B	1.38B
Cash, Cash Equivalents and Short-Term Investments	165.66M	167.81M	173.76M	148.13M	219.74M	178.11M
Total Debt	357.16M	401.95M	496.20M	336.55M	155.22M	76.47M
Total Liabilities	1.22B	1.29B	1.38B	1.51B	1.26B	854.27M
Stockholders Equity	809.35M	791.41M	773.01M	896.94M	786.58M	517.90M
Cash Flow
Free Cash Flow	112.53M	78.31M	-133.59M	-155.25M	-204.02M	25.68M
Operating Cash Flow	118.23M	98.81M	-62.65M	-37.93M	-103.45M	52.22M
Investing Cash Flow	-10.68M	4.43M	-54.47M	-153.14M	65.02M	-59.81M
Financing Cash Flow	-83.52M	-101.32M	147.12M	125.30M	59.35M	-5.51M

Austar Lifesciences Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6118, the sentiment is Neutral. The current price of 0.97 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.11, and above the 200-day MA of 0.96, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	67 Neutral	HK$540.42M	6.03	14.73%	5.06%	17.93%	36.82%
6118	52 Neutral	HK$553.59M	14.59	4.40%	―	-2.77%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2170	44 Neutral	HK$588.08M	―	-20.60%	―	11.43%	4.88%
2500	41 Neutral	HK$1.13B	-1.62	-26.80%	―	-8.56%	-14.84%
2216	40 Neutral	HK$1.31B	-10.19	-8.93%	―	-30.60%	28.61%
2393	40 Underperform	HK$298.19M	-1.73	-29.79%	―	6.10%	-115.12%

Austar Lifesciences Ltd. Corporate Events

Austar Lifesciences Reports Increased Profits Despite Revenue Dip

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

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

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

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.