Windmill Group Ltd. (1850) AI Stock Analysis

• Market Cap: HK$179.71M
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: 57 Neutral
• Price Target: HK$1.00 ▲(61.29% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by weak financial performance (declining revenue, very low margins, and negative cash flows). This is partially offset by strong technical strength with price trading well above major moving averages and positive momentum. Valuation is neither clearly attractive nor supportive due to the negative P/E and отсутствing dividend yield data.

Positive Factors

Conservative leverage and strong equity base

A low debt-to-equity ratio and a 67.74% equity ratio give Windmill durable financial flexibility. Reduced leverage lowers refinancing and interest risk, preserving capacity to fund operations or investments during downturns and supporting solvency over the next 2–6 months.

Improving free cash flow growth and coverage

Despite overall negative cash flows, a 20.71% FCF growth and FCF/net income >1 indicate improving cash generation discipline. This trend, if sustained, can help restore liquidity, reduce reliance on external financing and support operational continuity over coming quarters.

Low systematic volatility (low beta)

A beta near 0.22 signals low sensitivity to market swings, implying steadier cash flows and lower equity volatility. For a service business, lower systematic risk supports long-term planning and reduces the probability of forced financing or reactive cost-cutting in adverse macro periods.

Negative Factors

Declining revenue trend

A near-15% revenue decline is a durable operational concern: it reduces scale economics, weakens bargaining power with clients/suppliers, and makes fixed cost absorption harder. Continued top-line shrinkage will pressure margins and impede recovery without structural revenue fixes.

Very low margins and falling gross profitability

Compressed gross and net margins indicate limited pricing power or rising costs. With gross margin under 7% and net margin ~0.15%, the business has little buffer for cost shocks, limiting reinvestment and making sustainable profitability difficult without structural cost or pricing changes.

Negative operating cash flow

Persistent negative operating cash flow erodes liquidity and forces reliance on financing or asset sales. Even with some FCF improvement, negative operating cash generation constrains the company’s ability to fund working capital, invest in growth, and withstand cyclical pressures.

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.

Windmill Group Ltd. Financial Statement Overview

Summary

Weak fundamentals driven by declining revenue (-14.86%) and very low profitability (net margin 0.15%) alongside negative operating and free cash flows. The balance sheet is relatively steadier with conservative leverage (debt-to-equity 0.21) and a strong equity ratio (67.74%), but returns remain poor (ROE 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 0.96, below the 50-day MA of 0.79, and below the 200-day MA of 0.67, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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$105.84M	0.44	10.95%	10.17%	52.69%	―
3728	68 Neutral	HK$63.82M	6.49	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1850	57 Neutral	HK$179.71M	-6.69	-1.38%	―	-5.12%	-85.86%
2147	51 Neutral	HK$42.34M	-0.17	-18.01%	―	56.39%	-86.79%
2195	43 Neutral	HK$65.12M	-1.06	-19.64%	―	48.86%	54.49%
6189	38 Underperform	HK$17.35M	-0.35	9.17%	―	―	―

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.