SEHK:6118

Stock Analysis Report

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Market Cap

HK$6.4b

Last Updated

2021/06/13 10:24 UTC

Data Sources

Company Financials

Executive Summary

Austar Lifesciences Limited, an investment holding company, provides integrated engineering solutions to pharmaceutical manufacturers and research institutes in Mainland China and internationally. More Details

Rewards

Earnings grew by 306.7% over the past year

Risk Analysis

No risks detected for 6118 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Austar Lifesciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6118 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6118's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

7.6%

6118

2.9%

HK Life Sciences

0.04%

HK Market


1 Year Return

173.6%

6118

162.8%

HK Life Sciences

25.7%

HK Market

Return vs Industry: 6118 exceeded the Hong Kong Life Sciences industry which returned 162.8% over the past year.

Return vs Market: 6118 exceeded the Hong Kong Market which returned 25.7% over the past year.


Shareholder returns

6118IndustryMarket
7 Day7.6%2.9%0.04%
30 Day33.1%25.3%4.2%
90 Day149.4%45.0%0.3%
1 Year173.6%173.6%162.9%162.8%30.5%25.7%
3 Year277.5%277.5%189.9%187.8%6.7%-4.6%
5 Year901.6%901.6%244.8%236.0%62.6%34.6%

Long-Term Price Volatility Vs. Market

How volatile is Austar Lifesciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Austar Lifesciences undervalued compared to its fair value and its price relative to the market?

158.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6118 (HK$12.42) is trading above our estimate of fair value (HK$0.89)

Significantly Below Fair Value: 6118 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6118 is poor value based on its PE Ratio (158.6x) compared to the Asian Life Sciences industry average (47.1x).

PE vs Market: 6118 is poor value based on its PE Ratio (158.6x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6118's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6118 is overvalued based on its PB Ratio (10.1x) compared to the HK Life Sciences industry average (9.1x).


Future Growth

How is Austar Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.6%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Austar Lifesciences has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Austar Lifesciences performed over the past 5 years?

45.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6118 has high quality earnings.

Growing Profit Margin: 6118's current net profit margins (2.6%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 6118's earnings have grown significantly by 45.3% per year over the past 5 years.

Accelerating Growth: 6118's earnings growth over the past year (306.7%) exceeds its 5-year average (45.3% per year).

Earnings vs Industry: 6118 earnings growth over the past year (306.7%) exceeded the Life Sciences industry 59.6%.


Return on Equity

High ROE: 6118's Return on Equity (6%) is considered low.


Financial Health

How is Austar Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: 6118's short term assets (CN¥1.1B) exceed its short term liabilities (CN¥805.7M).

Long Term Liabilities: 6118's short term assets (CN¥1.1B) exceed its long term liabilities (CN¥48.6M).


Debt to Equity History and Analysis

Debt Level: 6118's debt to equity ratio (6%) is considered satisfactory.

Reducing Debt: 6118's debt to equity ratio has reduced from 6.3% to 6% over the past 5 years.

Debt Coverage: 6118's debt is well covered by operating cash flow (166.3%).

Interest Coverage: 6118 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Austar Lifesciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6118's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6118's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6118's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6118's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6118 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6118's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Mars Ho (58 yo)

no data

Tenure

CN¥918,000

Compensation

Mr. Kwok Keung Ho, also known as Mars, is the Founder of Austar Lifesciences Limited and serves as its Chairman of the Board and Chief Executive Officer. Mr. Ho is responsible for overseeing the business, ...


CEO Compensation Analysis

Compensation vs Market: Mars 's total compensation ($USD143.47K) is below average for companies of similar size in the Hong Kong market ($USD422.59K).

Compensation vs Earnings: Mars 's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 6118's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: 6118's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Austar Lifesciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Austar Lifesciences Limited
  • Ticker: 6118
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$6.366b
  • Shares outstanding: 512.58m
  • Website: https://www.austar.com.hk

Number of Employees


Location

  • Austar Lifesciences Limited
  • Chaowai Men Office Building
  • Building B, Room 1801
  • Beijing
  • China

Listings


Biography

Austar Lifesciences Limited, an investment holding company, provides integrated engineering solutions to pharmaceutical manufacturers and research institutes in Mainland China and internationally. It opera...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 10:24
End of Day Share Price2021/06/11 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.