Austar Lifesciences Ltd. (6118) AI Stock Analysis

• Market Cap: HK$451.07M
• Dividend Yield: N/A
• Average Volume (3M): 695.30K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.89 ▼(-0.11% Downside)

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

Positive free cash flow conversion

Turning free cash flow positive and an operating cash flow to net income ratio of 6.14 indicate the company is converting earnings into cash efficiently. Durable cash generation reduces reliance on external funding, supports sustained R&D and commercialization spending, and improves financial flexibility over the medium term.

Diversified revenue streams

Austar’s mix of product sales, licensing deals and strategic partnerships creates multiple durable revenue channels. Licensing income and collaborations can provide recurring, less cyclical cash flows while partnerships broaden market access and de-risk single-product dependence over the coming months to years.

Improving return on equity

The shift from negative ROE to a positive 2.03% signals improving profitability and more efficient use of equity capital. While modest, this recovery suggests management actions are beginning to stabilize returns, supporting reinvestment capacity and lending credibility to a gradual operational turnaround.

Negative Factors

Inconsistent revenue trajectory

Fluctuating top-line performance undermines predictability of future cash flows and makes long-term planning for R&D and commercialization harder. Inconsistent revenue growth suggests demand or execution issues that could limit scale benefits and revenue visibility over the next several quarters.

Margin pressure and low operating margins

Declining gross margin and persistently low EBIT/EBITDA margins indicate structural cost pressures or pricing limits. Margin compression reduces retained earnings for reinvestment, increases sensitivity to cost inflation, and weakens the firm’s ability to sustainably fund pipeline advancement and commercialization.

Moderate leverage and weakening equity ratio

Moderate debt combined with a falling equity ratio signals rising balance-sheet risk. For a biotech reliant on ongoing R&D spending, this limits financial flexibility to absorb setbacks or fund new programs and could necessitate dilutive financing or costly borrowing if cash generation weakens.

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 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: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.89 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.94, and below the 200-day MA of 1.00, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 29.77 is Positive, neither overbought nor oversold. The STOCH value of 18.46 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	71 Outperform	HK$639.28M	7.13	14.73%	4.94%	17.93%	36.82%
2500	53 Neutral	HK$1.33B	-1.91	-26.80%	―	-8.56%	-14.84%
6118	52 Neutral	HK$451.07M	11.62	4.40%	―	-2.77%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2170	44 Neutral	HK$541.58M	-2.07	-20.60%	―	11.43%	4.88%
2216	40 Neutral	HK$1.13B	-8.59	-8.93%	―	-30.60%	28.61%
2393	40 Underperform	HK$237.62M	-1.37	-29.79%	―	6.10%	-115.12%