Windmill Group Ltd. (1850) AI Stock Analysis

• Market Cap: HK$162.43M
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -5.12%
• EPS Growth: -85.86%
• Country: HK
• Employees: 61
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 172,800,000
• 10 Day Avg. Volume: 1,005,000
• 30 Day Avg. Volume: 2,075,636
• PEG Ratio: -0.61
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.31
• 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: 49 Neutral
• Price Target: HK$0.92 ▲(47.58% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held back primarily by weak financial performance (declining revenue, very low margins, and negative operating/free cash flow). Technicals provide some support due to price strength above moving averages and a positive MACD, but overbought signals temper that. Valuation remains unattractive/uncertain given the negative P/E and no dividend yield data.

Positive Factors

Conservative capital structure

Low leverage and a high equity ratio provide durable financial flexibility: reduced interest burdens and greater capacity to absorb shocks or fund strategic investments without stressing liquidity. This structural balance-sheet strength supports long-term stability and access to capital.

Improving free cash flow trend

Although overall cash flow remains negative, a 20.7% improvement in free cash flow growth and FCF/net income >1 indicate progress in cash conversion. If sustained, this trend can underpin investments and reduce reliance on external funding, improving longer-term viability.

Lean operating scale

A small headcount implies a lean cost base and operational flexibility. That structure can allow faster break-even and easier margin recovery when revenues stabilize, enabling management to adjust capacity or redeploy resources with lower structural fixed-cost burden.

Negative Factors

Declining revenue trend

Persistent revenue decline erodes scale, weakens pricing power, and makes fixed-cost absorption harder. Over several quarters this reduces margin resiliency, constrains reinvestment capacity, and undermines long-term growth prospects absent a sustainable top-line recovery.

Very thin profitability margins

Extremely low gross and net margins limit ability to fund operations, capex, or strategic initiatives. Structural margin compression increases vulnerability to cost shocks and means small revenue shortfalls can quickly eliminate profits, pressuring returns and internal funding sources.

Negative operating cash flow

Negative operating cash flow is a durable red flag: it forces dependence on financing, reduces room for capital expenditure, and can deplete liquidity over time. Even with low leverage, persistent negative cash generation threatens sustainable operations and growth funding.

Windmill Group Ltd. Business Overview & Revenue Model

Company Description

WINDMILL Group Limited operates as a fire service installation contractor in Hong Kong. It engages in the design, supply, and installation of fire safety systems for buildings under construction or re-development. The company is also involved in the maintenance and repair of fire safety systems for built premises; and administrative services. In addition, it trades in fire service accessories, including branded fire services equipment, as well as engages in the wholesale of health supplement products. The company was incorporated in 2016 and is based in Kowloon Bay, Hong Kong.

How the Company Makes Money

Windmill Group Ltd. generates revenue through multiple key streams, primarily from the sale of wind turbines and energy storage systems. The company also earns income through installation services and long-term maintenance contracts for its equipment. Additionally, Windmill Group Ltd. benefits from strategic partnerships with government agencies and international renewable energy organizations, allowing it to participate in public tenders and large-scale projects, further enhancing its revenue potential. The growing demand for renewable energy solutions, driven by global sustainability initiatives and government incentives, also plays a crucial role in boosting the company's earnings.

Windmill Group Ltd. Financial Statement Overview

Summary

Financials show weakening operations: revenue declined (-14.86%), profitability is very thin (net margin 0.15%) with lower gross/EBIT/EBITDA margins, and cash flow is a key concern with negative operating and free cash flow. The balance sheet is steadier with low leverage (debt-to-equity 0.21) and a strong equity ratio (67.74%), but ROE is very low (0.19%).

Income Statement

Windmill Group Ltd. has experienced a decline in revenue growth with a negative growth rate of -14.86% in the latest year. The gross profit margin has decreased to 6.92% from previous years, indicating pressure on profitability. The net profit margin is very low at 0.15%, showing limited profitability. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.21, indicating a conservative leverage position. However, the return on equity is very low at 0.19%, suggesting inefficient use of equity capital. The equity ratio stands at 67.74%, indicating a strong equity base relative to total assets.

Cash Flow

Windmill Group Ltd. has negative operating and free cash flows, with a slight improvement in free cash flow growth at 20.71%. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net income with free cash flow.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	371.64M	374.35M	394.54M	277.68M	231.26M	197.60M
Gross Profit	23.14M	25.91M	29.00M	30.45M	24.23M	27.45M
EBITDA	-277.00K	7.93M	10.39M	14.56M	-3.91M	9.35M
Net Income	-4.53M	568.00K	2.93M	7.80M	-6.99M	4.89M
Balance Sheet
Total Assets	477.35M	434.56M	397.06M	258.82M	194.63M	180.81M
Cash, Cash Equivalents and Short-Term Investments	46.78M	8.84M	16.89M	25.12M	62.72M	51.44M
Total Debt	53.05M	60.54M	56.60M	59.66M	18.26M	32.36M
Total Liabilities	117.36M	141.38M	123.16M	115.37M	57.57M	66.02M
Stockholders Equity	361.20M	294.37M	275.28M	144.11M	137.06M	114.79M
Cash Flow
Free Cash Flow	-42.71M	-24.60M	-131.77M	-71.21M	-3.06M	26.60M
Operating Cash Flow	-41.50M	-23.99M	-131.69M	-70.99M	-2.02M	27.11M
Investing Cash Flow	-1.32M	-397.00K	6.37M	-2.67M	-4.73M	-1.16M
Financing Cash Flow	66.33M	16.91M	121.17M	35.03M	14.64M	-19.61M

Windmill Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.62 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.71, and below the 200-day MA of 0.65, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1850.

Windmill Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3822	71 Outperform	HK$93.24M	0.44	11.01%	10.17%	52.69%	―
3728	68 Neutral	HK$64.83M	6.49	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2147	51 Neutral	HK$40.99M	-0.17	-28.48%	―	56.39%	-86.79%
1850	49 Neutral	HK$162.43M	-6.69	0.20%	―	-5.12%	-85.86%
2195	43 Neutral	HK$65.12M	-1.06	-19.00%	―	48.86%	54.49%
6189	38 Underperform	HK$17.35M	-0.35	―	―	―	―

Windmill Group Ltd. Corporate Events

HSC Resources Swings to Interim Loss Despite Stable Revenue

HSC Resources Group Limited reported interim results for the six months ended 31 October 2025 showing largely stable revenue but a swing into loss. Revenue edged down 1.0% year-on-year to approximately HK$268.8 million, while the Group recorded a net loss of about HK$3.0 million versus a profit of HK$2.0 million a year earlier, with basic and diluted loss per share at HK1.72 cents compared with earnings of HK1.23 cents previously. The deterioration in profitability, despite relatively flat sales and cost of sales, reflects higher administrative expenses and finance costs, and the board has decided not to declare an interim dividend, signalling a more cautious capital stance for shareholders.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.

HSC Resources Updates Market on Executive Director’s Previous Directorship

HSC Resources Group Limited has issued a supplemental announcement regarding the appointment of executive director Ms. Ma Man Chi, clarifying her previous directorship at another Hong Kong-listed company. The company disclosed that Ms. Ma served as an executive director of China New Holdings Limited, a GEM-board listed firm, from July 2024 to December 2025, updating investors on her background and reinforcing transparency around the composition and experience of its current board.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.

HSC Resources Warns of Interim Loss on Margin Pressure and Higher Costs

HSC Resources Group Limited has issued a profit warning, indicating it expects to report an unaudited consolidated loss of at least HK$2.5 million for the six months ended 31 October 2025, reversing from an unaudited profit of about HK$2.0 million in the corresponding period of 2024. The deterioration is mainly attributed to a decline in gross profit margin and higher administrative expenses driven by increased legal and professional fees, signaling margin pressure and rising cost burdens that may concern shareholders and potential investors ahead of the formal interim results announcement expected on 31 December 2025.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.

HSC Resources Group Schedules Board Meeting for Interim Results

HSC Resources Group Limited, formerly known as Windmill Group Limited, has announced a board meeting scheduled for December 31, 2025. The meeting will focus on approving the unaudited interim results for the six months ending October 31, 2025, and potentially declaring an interim dividend, which could impact the company’s financial outlook and shareholder returns.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.

HSC Resources Group Appoints Ms. Ma Man Chi as Executive Director

HSC Resources Group Limited, formerly known as Windmill Group Limited, has announced the appointment of Ms. Ma Man Chi as an Executive Director effective from December 12, 2025. Ms. Ma has been with the company since 2018, serving as the financial controller, and brings over a decade of experience in accounting and auditing from the engineering and construction industry. Her appointment is expected to strengthen the company’s leadership team, leveraging her extensive financial expertise and industry experience to enhance corporate governance and strategic planning.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.

HSC Resources Group Announces Board Composition and Leadership Roles

HSC Resources Group Limited, formerly known as Windmill Group Limited, has announced the composition of its board of directors and their respective roles. The board consists of both executive and independent non-executive directors, with Mr. Li Shing Kuen Alexander serving as the Chief Executive Officer. The board has established three committees: Audit, Remuneration, and Nomination, with Mr. Li Ka Chun Gordon chairing all three. This announcement highlights the company’s governance structure and the leadership roles within its board, indicating a structured approach to corporate management.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.

HSC Resources Group Relocates Hong Kong Office

HSC Resources Group Limited, formerly known as Windmill Group Limited, has announced a change in its principal place of business in Hong Kong. The new location is Unit 501, 5th Floor, The Cendas, 15 Sheung Yuet Road, Kowloon Bay, Kowloon, effective from December 3, 2025. This relocation may reflect strategic operational adjustments that could influence the company’s logistical or administrative functions.

The most recent analyst rating on (HK:1850) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Windmill Group Ltd. stock, see the HK:1850 Stock Forecast page.