Windmill Group Ltd. (1850) AI Stock Analysis

• Market Cap: HK$31.28M
• Dividend Yield: N/A
• Average Volume (3M): 370.15K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.09
• Revenue Growth: 11.90%
• EPS Growth: -66.08%
• Country: HK
• Employees: 61
• Sector: Industrials
• Sector Strength: 89
• Industry: Security & Protection Services
• EPS (TTM): 0.01
• Shares Outstanding: 172,800,000
• 10 Day Avg. Volume: 328,300
• 30 Day Avg. Volume: 370,150
• PEG Ratio: -0.45
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.53
• 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: 1

• Rating: 63 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Windmill Group Ltd.'s overall score is influenced primarily by its strong revenue growth and stable balance sheet, despite profitability and cash flow challenges. Technical indicators suggest a neutral market stance with potential overbought conditions, while valuation metrics indicate moderate pricing. The lack of earnings call data and corporate events means these factors were not considered.

Windmill Group Ltd. Business Overview & Revenue Model

Company Description

Windmill Group Ltd. (1850) is a diversified conglomerate that operates in various sectors, including renewable energy, real estate development, and financial services. The company is known for its innovative solutions in wind energy production and management, as well as its strategic investments in real estate projects and financial products. Windmill Group Ltd. aims to lead in sustainable development and provide value through its wide range of services and solutions.

How the Company Makes Money

Windmill Group Ltd. generates revenue primarily through its wind energy operations, where it develops, constructs, and manages wind farms that produce electricity. The company sells this electricity to utility companies and other large energy consumers under long-term power purchase agreements. Additionally, Windmill Group Ltd. earns income from its real estate development projects by selling residential and commercial properties and leasing office spaces. The financial services arm of the company provides investment and asset management services to individual and institutional clients, generating fees and commissions. Key partnerships with energy utilities and real estate developers further enhance its revenue streams, along with government incentives for renewable energy projects.

Windmill Group Ltd. Financial Statement Overview

Summary

Windmill Group Ltd. demonstrates strong revenue growth and a stable balance sheet, but faces challenges with profitability and cash flow management. While the debt-to-equity ratio is low and equity ratio is strong, the low net profit margin and negative cash flow signal potential financial instability.

Income Statement

Windmill Group Ltd. has shown a significant revenue growth of 42% year-over-year, indicating a strong top-line expansion. However, the net profit margin is relatively low at 0.74%, and the gross profit margin has decreased compared to the previous year. EBIT and EBITDA margins also suggest moderate operating efficiency, but profitability remains a concern due to low net income.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.21, reflecting a conservative approach to leverage. The equity ratio is strong at 69.3%, indicating a healthy balance sheet with substantial equity backing. Return on equity is modest at 1.1%, suggesting limited returns for shareholders at present.

Cash Flow

Windmill Group Ltd. faces significant challenges with negative free cash flow and operating cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting profits into cash. This situation poses a risk to the company's financial flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	439.66M	394.54M	277.68M	231.26M	197.60M	152.85M
Gross Profit	33.06M	29.00M	30.45M	24.23M	27.45M	9.75M
EBITDA	8.64M	10.39M	14.56M	-3.91M	9.35M	-20.91M
Net Income	2.86M	2.93M	7.80M	-6.99M	4.89M	-20.65M
Balance Sheet
Total Assets	426.40M	397.06M	258.82M	194.63M	180.81M	195.81M
Cash, Cash Equivalents and Short-Term Investments	101.61M	16.89M	25.53M	63.31M	51.44M	59.47M
Total Debt	52.72M	56.60M	59.66M	18.26M	32.36M	51.41M
Total Liabilities	131.96M	123.16M	115.37M	57.57M	66.02M	85.91M
Stockholders Equity	295.93M	275.28M	144.11M	137.06M	114.79M	109.91M
Cash Flow
Free Cash Flow	-20.38M	-132.57M	-71.21M	-3.06M	26.60M	-940.00K
Operating Cash Flow	-20.44M	-131.69M	-70.99M	-2.02M	27.11M	-543.00K
Investing Cash Flow	-699.00K	6.37M	-2.67M	-4.73M	-1.16M	-12.66M
Financing Cash Flow	10.35M	121.17M	35.03M	14.64M	-19.61M	32.31M

Windmill Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 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:1850, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1850.

Windmill Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8480	72 Outperform	HK$185.59M	7.85	6.39%	4.98%	-12.11%	-26.86%
6078	70 Outperform	HK$9.31B	14.84	9.30%	―	7.28%	-13.77%
1850	63 Neutral	HK$31.28M	10.40	1.00%	―	11.90%	-66.08%
Sector *	58 Neutral	HK$13.95B	4.43	-3.01%	7.31%	3.67%	-54.16%
8161	47 Neutral	HK$15.81M	1.96	105.83%	―	5.73%	75.18%
8229	41 Neutral	HK$191.34M	―	-11.66%	―	-9.21%	-4.52%
8193	41 Neutral	HK$78.35M	―	-34.21%	―	-1.68%	49.77%

Windmill Group Ltd. Corporate Events

HSC Resources Group Delays Rights Issue Amid Capital Reorganisation

HSC Resources Group Limited has announced an update regarding its capital reorganisation and a delay in the dispatch of prospectus documents related to a proposed rights issue. The rights issue, which offers four rights shares for every one adjusted share, is contingent upon the capital reorganisation becoming effective. However, the reorganisation is pending court approval for the capital reduction, leading to a postponement in the prospectus dispatch and a revision of the rights issue timetable.

HSC Resources Group Secures Shareholder Approval for Key Resolutions

HSC Resources Group Limited announced the successful approval of all resolutions at its Extraordinary General Meeting held on April 7, 2025. The key resolutions included a Capital Reorganisation and a Rights Issue, both of which received overwhelming support from shareholders. The Capital Reorganisation was approved with 99.94% of votes in favor, while the Rights Issue, which will significantly increase the company’s issued shares, was approved with 99.61% of votes in favor. These developments are expected to impact the company’s capital structure and shareholder base.

HSC Resources Group Announces Capital Reorganisation and Rights Issue

HSC Resources Group Limited has announced a proposed capital reorganisation and rights issue, offering four rights shares for every one adjusted share held. The company clarified that new share certificates will be issued in red to distinguish them from existing green certificates, with no other changes to the previously issued circular.

HSC Resources Group Plans Capital Reorganization

HSC Resources Group Limited, formerly known as Windmill Group Limited, has announced an extraordinary general meeting to discuss and potentially approve a significant capital reorganization. This reorganization involves a share consolidation, capital reduction, and share subdivision, aimed at restructuring the company’s share capital. The proposed changes are conditional upon court approval and compliance with Cayman Islands laws and the Stock Exchange’s listing rules. If approved, these measures could impact the company’s financial structure and shareholder value.