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Baguio Green Group Ltd (1397) AI Stock Analysis

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HK:1397

Baguio Green Group Ltd

(HKEX:1397)

Select Model
Rating:67Neutral
Price Target:HKD 0.80â–²(9.25% Upside)
Action:reiterated
Date:08/18/26

The score is supported primarily by a stronger balance sheet and improved profitability, plus very compelling valuation (low P/E and high dividend yield). Offsetting factors are weak price/indicator trends (below key moving averages with bearish momentum) and cash-flow volatility, including a sharp free-cash-flow decline in the latest year.

Positive Factors
Conservative Balance SheetLower leverage reduces balance-sheet risk and interest-related pressure, giving Baguio Green greater flexibility to withstand operational volatility and fund service capabilities or reinvestment while maintaining resilience through contract cycles.
Negative Factors
Revenue ContractionThe latest revenue decline signals pressure on contract wins, renewals, service scope or customer demand. In a contract-based environmental-services business, sustained top-line weakness could limit scale benefits and make fixed labor and operating costs harder to absorb.

Baguio Green Group Ltd (1397) vs. iShares MSCI Hong Kong ETF (EWH)

-40%-30%-20%-10%0%10%20%HK:1397-38.70%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 305.02M
Dividend Yield
9.52%
Average Volume (3M)
190.63K
Price to Earnings (P/E)
4.5
Beta (1Y)
0.37
Revenue Growth
-21.56%
EPS Growth
-23.25%
Country
Hong Kong
Employees
7,060
Sector
Industrials
Sector Strength
63
Industry
Waste Management

Baguio Green Group Ltd Business Overview & Revenue Model

Company Description

Operating as an investment holding company, Baguio Green Group Limited delivers a comprehensive suite of environmental and associated services across Hong Kong, Mainland China, and Southeast Asia. The company's operations are structured around four c...

How the Company Makes Money

Baguio Green Group Ltd primarily makes money by providing outsourced environmental and facility-related services under contract. Its key revenue streams typically come from (1) recurring service fees from government tenders and public-sector contract...

Baguio Green Group Ltd Financial Statement Overview

Summary

Financials are mixed. The balance sheet is a key strength with steadily improving, conservative leverage (debt-to-equity down to ~0.17) and solid ROE (~19.8%). Profitability improved in 2025 (higher net and EBITDA margins), but revenue declined ~9% and free cash flow dropped sharply (~44% YoY) with historically choppy cash generation, which limits the score.

Income Statement

66Positive

Balance Sheet

78Positive

Cash Flow

61Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.09B2.42B2.60B2.33B1.79B1.27B
Gross Profit191.46M230.59M188.37M206.12M150.97M109.00M
EBITDA126.96M173.30M159.77M161.64M140.07M82.30M
Net Income67.94M97.28M53.86M47.11M53.71M12.85M
Balance Sheet
Total Assets988.06M999.43M1.01B1.01B896.17M660.94M
Cash, Cash Equivalents and Short-Term Investments302.47M251.74M128.05M45.93M33.58M36.72M
Total Debt72.76M85.98M118.90M219.28M223.59M161.33M
Total Liabilities495.15M506.84M597.87M641.69M560.06M374.36M
Stockholders Equity491.98M491.66M411.57M370.19M337.62M286.58M
Cash Flow
Free Cash Flow40.01M150.64M227.46M44.49M-51.48M8.50M
Operating Cash Flow84.72M197.75M262.44M96.27M83.75M84.77M
Investing Cash Flow-17.65M-19.79M-32.15M-49.29M-122.27M-67.08M
Financing Cash Flow-62.83M-61.72M-143.61M-34.36M35.85M-13.17M

Baguio Green Group Ltd Technical Analysis

Technical Analysis SentimentNegative
Last Price0.73

Price Trends

50DMA0.75Negative
100DMA0.83Negative
200DMA0.96Negative

Market Momentum

MACD-0.00Negative
RSI44.53Neutral
STOCH33.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1397, the sentiment is Negative. The current price of 0.73 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.75, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1397.

Baguio Green Group Ltd Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:1397 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1330HK:133074OutperformHKD 12.17B15.118.58%5.94%17.05%8.15%
HK:1397HK:139767NeutralHKD 305.03M4.4913.81%9.52%-21.56%-23.25%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:3989HK:398960NeutralHKD 1.14B3.334.16%―1.64%23.16%
HK:0154HK:015450NeutralHKD 622.65M2.076.54%―-5.08%-2.98%
HK:1790HK:179049NeutralHKD 575.00M11.413.27%―4.82%-24.40%
HK:0587HK:058738UnderperformHKD 584.56M-1.94-9.09%―1.36%-254.59%

* Industrials Sector Average

Performance Comparison

-50%0%50%HK:1397HK:1330HK:0154HK:1790HK:3989HK:0587Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1397 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1397Baguio Green Group Ltd0.73-0.39-34.67%
HK:1330Dynagreen Environmental Protection Group Co., Ltd. Class H6.431.2323.54%
HK:0154Beijing Enterprises Environment Group Limited0.41-0.15-27.19%
HK:1790TIL Enviro Limited0.570.1227.78%
HK:3989Capital Environment Holdings Limited0.08-0.00-3.61%
HK:0587China Conch Environment Protection Holdings Ltd.0.32-0.27-45.76%

Baguio Green Group Ltd Corporate Events

Baguio Green Group Sets Board Meeting to Review 2026 Interim Results and Dividend

Aug 17, 2026

Baguio Green Group Limited has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, signalling potential ret...

Baguio Green Group Warns of Sharply Lower Interim Profit Amid Fierce Tender Competition

Aug 14, 2026

Baguio Green Group Ltd has issued a profit warning for the six months ended 30 June 2026, forecasting profit after tax of HK$27 million to HK$30 million, down about 49% to 54% from HK$58.8 million a year earlier. The decline stems mainly from lower r...

Baguio Green Wins Unanimous Backing at AGM, Secures New Capital Mandates

May 29, 2026

Baguio Green Group Ltd reported that all resolutions at its 29 May 2026 annual general meeting were approved by shareholders through a poll, including the adoption of the 2025 audited accounts and the declaration of a final dividend of HK$0.07 per sh...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 18, 2026