Overview
Baguio Green (“Baguio”) was established in 1980 and is one of Hong Kong’s largest integrated environmental services groups, providing services such as environmental hygiene, resource recycling, waste recovery and recycling, green technology, organic fertilizer production, landscaping projects, pest control, and waste management. The company’s main business is primarily divided into four segments, including: (1) cleaning services; (2) waste treatment and recycling business; (3) landscaping services; and (4) pest management business. Its clientele spans various industries and types of organizations, such as government departments, public organizations, and multinational corporations.
Net Profit Surged in H1 2025, Profitability Improved Significantly
Benefiting from revenue growth in the Cleaning and Landscaping segments, the Company’s revenue for the first half of 2025 reached HKD 1.354 billion, representing a year-on-year increase of 4.8%. The Cleaning business, being the core operation, generated revenue of HKD 1.08 billion, up 4% year-on-year, accounting for 79.6% of the total revenue. Revenue from the Waste Management and Recycling business was HKD 150 million, down 1.4% year-on-year, accounting for 10.7% of the total revenue. The Landscaping business reported revenue of HKD 100 million, a significant increase of 40.9% year-on-year, accounting for 7.4% of the total revenue. The Pest Management business generated revenue of HKD 32 million, down 16.7% year-on-year, accounting for 2.3% of the total revenue. Benefiting from effective cost control and a decrease in financial expenses, the gross profit margin was 9.8%, an increase of 2.3 percentage points year-on-year. The gross profit for the Cleaning business was HKD 850 million, an increase of 27.4% year-on-year, with a gross margin of 7.9%, up 1.5 percentage points year-on-year, primarily due to new cleaning service contracts with various government departments and different organizations. The gross profit for the Waste Management and Recycling business was HKD 28 million, up 46.6% year-on-year, with a gross margin of 19.2%, a substantial increase of 6.3 percentage points year-on-year, mainly driven by the government’s active promotion of recycling, significant expansion of the recycling point network including food waste, which facilitated public participation and effectively stimulated collection volumes, as well as contributions from the green technology business. The gross margin for the Landscaping business was 19%, an increase of 5.7 percentage points year-on-year. The gross margin for the Pest Management business was 3.6%, a decrease of 1.5 percentage points year-on-year. Net profit surged by 128.1% year-on-year to HKD 59 million. Earnings per share (EPS) for the first half of 2025 already reached 14.2 HK cents, surpassing the full-year 2024 EPS of 13.0 HK cents, representing a remarkable year-on-year increase of 142.7%. From 2021 to 2024, the Company’s EPS achieved a compound annual growth rate (CAGR) of 61%. The average accounts receivable turnover days were 69 days, a decrease of 4 days compared to the end of 2024. The average accounts payable turnover days were 46 days, a decrease of 8 days compared to the end of 2024, demonstrating improved working capital turnover efficiency and faster collection times. Net cash generated from operating activities was HKD 200 million, an increase of 36.8% year-on-year. Available cash and bank balances were approximately HKD 291 million, an increase of 127.1% compared to the end of 2024, further proving the high quality of the Company’s earnings and its sound financial health.
Securing First Large-Scale Marine Cleaning Contract, Marking a Strategic Business Breakthrough
The company’s cleaning services span across various districts in Hong Kong, comprehensively covering venues such as hospitals, police stations, streets, recreational facilities, airports, exhibition centers, the public stands of the Jockey Club, and universities.
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本科主修市場行銷和英語，並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師，主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作，對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.
