AUSTAR H1 2026: Revenue Rises 12.5% to RMB 744.48 Million, Net Profit Slumps 66% on Margin Compression

Bulletin Express08-25

Austar Lifesciences Limited (AUSTAR, 06118) reported mixed interim results for the six months ended 30 June 2026.

1. Core Financials • Revenue grew 12.5% year-on-year (YoY) to RMB 744.48 million, supported by stronger project execution and higher opening backlog. • Gross profit slipped 0.7% to RMB 138.15 million as the consolidated gross margin narrowed to 18.6% (H1 2025: 21.0%) amid intensified pricing pressure and higher costs. • Profit before tax fell 41.7% to RMB 17.66 million; profit attributable to shareholders declined 66.1% to RMB 8.46 million. Basic and diluted EPS decreased to RMB 0.02 (H1 2025: RMB 0.05).

2. Segment Performance • Integrated Process & Packaging Equipment & Systems (IPS) – Revenue up 20.6% to RMB 383.76 million; margin down to 10.5%. • Consulting, Digitalization & Construction (CDC) – Revenue up 6.0% to RMB 201.50 million; margin dropped to 16.9% amid fierce domestic competition. • Life Science Equipment & Consumables (SIC) – Revenue up 3.6% to RMB 159.22 million; margin eased to 40.1% due to higher import costs following US-China tariff adjustments.

3. Order Flow and Backlog • Order-in-take contracted 19.9% to RMB 834.42 million as management turned more selective, focusing on higher-margin projects amid a sluggish domestic market. • Backlog stood at RMB 1.16 billion (VAT excluded) across 1,623 contracts, led by IPS (RMB 615.49 million) and CDC (RMB 514.63 million).

4. Cash Flow and Balance Sheet • Operating cash inflow surged 126.6% to RMB 88.31 million, driven by improved working-capital management. • Cash and cash equivalents totalled RMB 209.69 million; net current assets edged up to RMB 427.60 million. • Total borrowings declined, cutting the gearing ratio to 24.4% (31 Dec 2025: 29.4%).

5. Cost Structure and Expenses • Selling & marketing expenses rose 6.5% to RMB 77.42 million, reflecting higher promotional and travel costs. • Administrative expenses decreased 3.6% to RMB 39.89 million on tighter cost control. • R&D investment increased 5.4% to RMB 17.36 million, bringing the Group’s patent portfolio to 419 items.

6. Operational Highlights • AUSTAR expanded overseas, winning cleanroom and engineering contracts in Southeast Asia and North Africa and signing nine new agency agreements across Asia, Europe, and the US. • Launched the ATEC Blue Line Component Processing System and secured its first commercial oral-solid-dosage continuous manufacturing line in China. • Staff headcount rose slightly to 1,490; total staff costs grew 11.3% to RMB 198.1 million.

7. Dividend No interim dividend was declared for the period (H1 2025: nil).

8. Outlook Stated by Management Management intends to focus on higher-margin projects, accelerate global expansion, increase the share of own-brand and in-house-manufactured products, and pursue opportunities in innovative drug modalities, medical devices, medical aesthetics, and other life-science segments.

The interim report will be available on the websites of the Stock Exchange and the company in due course.

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