Austar Lifesciences Ltd. (6118) AI Stock Analysis

• Market Cap: HK$527.96M
• Dividend Yield: N/A
• Average Volume (3M): 381.70K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.68
• 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: 285,500
• 30 Day Avg. Volume: 381,700
• PEG Ratio: -0.15
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 3.62
• 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$1.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• 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. Business Overview & Revenue Model

Company Description

Austar 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 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 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

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: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1612	74 Outperform	HK$623.49M	6.99	11.96%	4.32%	17.93%	36.82%
2216	57 Neutral	HK$1.48B	-11.51	-9.03%	―	-30.60%	28.61%
6118	52 Neutral	HK$527.96M	13.92	4.40%	―	-2.77%	―
2500	50 Neutral	HK$1.42B	-2.02	-32.31%	―	-8.56%	-14.84%
2170	47 Neutral	HK$836.99M	-3.25	-20.74%	―	11.43%	4.88%
2393	41 Neutral	HK$298.19M	-1.70	199.66%	―	6.10%	-115.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.

Austar Lifesciences Ltd. Reports Significant Profit Growth in 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

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.