Baguio Green Group Ltd (1397) AI Stock Analysis

• Market Cap: HK$531.20M
• Dividend Yield: 3.17%
• Average Volume (3M): 544.57K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.36
• Revenue Growth: 6.12%
• EPS Growth: 78.64%
• Country: HK
• Employees: 10,329
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.14
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 292,400
• 30 Day Avg. Volume: 544,566
• PEG Ratio: 0.27
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 1.17
• 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: HK$1.55
• Price Target Upside: 34.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$1.50 ▲(30.43% Upside)

The stock's strong technical momentum and attractive valuation are the primary drivers of its high score. Financial performance is solid, though limited by incomplete cash flow data. The absence of earnings call insights and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth and improved profit margins indicate the company's ability to expand its market presence and enhance profitability over time.

Debt Management

Prudent debt management with a low debt-to-equity ratio enhances financial stability and reduces risk, supporting long-term operational resilience.

Cash Generation

Strong cash generation capability ensures the company can fund operations and growth initiatives without relying heavily on external financing.

Negative Factors

Leverage Risk

Moderate leverage, while currently manageable, could become a risk factor if adverse market conditions arise, potentially impacting financial flexibility.

Cash Flow Data Gaps

Incomplete cash flow data limits the ability to fully assess liquidity and financial flexibility, posing a challenge for long-term financial planning.

Profitability Constraints

Modest improvements in EBIT and EBITDA margins suggest limited room for enhancing profitability, which could constrain future earnings growth.

Baguio Green Group Ltd Business Overview & Revenue Model

Company Description

Baguio Green Group Limited, an investment holding company, provides environmental and related services in Hong Kong, Mainland China, and Southeast Asia. It operates through four segments: Cleaning Services Business, Landscaping Services Business, Pest Management Business, and Waste Management and Recycling Business. The company offers cleaning services for commercial and industrial buildings, residential premises, public hygiene, shopping malls, education institutions, and corporations, as well as cultural, leisure, and recreation venues; specialized and antimicrobial coating services; pest management and control services, such as termite, rodent, cockroach, mosquito and fly, red fire ant, flea, leisure places pest, bird nuisance, and other common urban pests control, as well as integrated pest management services; and landscaping services, including tree survey and arboricultural works, horticultural maintenance, landscape and green projects, and lawn maintenance, as well as supplies plants, trees, and landscape materials. It also provides landscape engineering services, such as tree survey and assessment, turfing, and landscape design; and waste management services comprising commercial, industrial, municipal, construction, food, yard, liquid, chemical, and clinical wastes, as well as materials recovery, glass management, animal waste management, waste management projects, confidential wastes destruction services, and waste paper collection and recycling services. In addition, the company offers automobile repair and plant nursing services; and develops and explores for green technology products. It serves household clients, multinational corporations, semi-government organizations, and government departments. The company was founded in 1980 and is headquartered in Lai Chi Kok, Hong Kong. Baguio Green Group Limited is a subsidiary of Baguio Green (Holding) Limited.

How the Company Makes Money

Baguio Green Group generates revenue through multiple streams, primarily by selling fresh produce directly to retailers, wholesalers, and food service businesses. The company benefits from its vertically integrated operations, which include farming, processing, and distribution, allowing it to maintain quality control and reduce costs. Additionally, Baguio Green Group engages in export activities, tapping into international markets for higher-value products. Partnerships with major retailers and food distributors enhance its market reach and stability. Seasonal demand for fresh produce also plays a significant role in driving revenue, particularly during peak harvest times.

Baguio Green Group Ltd Financial Statement Overview

Summary

Baguio Green Group Ltd shows strong revenue growth and improved profit margins, supported by prudent debt management. However, missing cash flow data limits a full assessment of liquidity and financial flexibility.

Income Statement

Baguio Green Group Ltd shows a strong revenue growth trend with a 11.83% increase from 2023 to 2024. The gross profit margin is stable at approximately 7.23% in 2024. The net profit margin improved slightly to 2.07%, indicating better cost management. However, EBIT and EBITDA margins show only modest improvements, limiting profitability potential.

Balance Sheet

The company maintains a conservative debt-to-equity ratio of 0.29 in 2024, reflecting prudent financial management. Return on equity improved to 13.08%, indicating efficient use of equity. However, the equity ratio of 40.70% suggests moderate leverage, which could pose risks if market conditions worsen.

Cash Flow

Cash flow analysis is constrained by missing data in 2024. In 2023, a free cash flow of 44.49 million was observed. A significant operating cash flow to net income ratio in prior years indicates strong cash generation capability, but recent data gaps limit comprehensive assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.60B	2.33B	1.79B	1.27B	1.13B
Gross Profit	224.31M	188.37M	206.12M	150.97M	109.00M	63.55M
EBITDA	175.97M	144.43M	161.64M	140.07M	82.30M	112.83M
Net Income	88.53M	53.86M	47.11M	53.71M	12.85M	51.38M
Balance Sheet
Total Assets	1.10B	1.01B	1.01B	896.17M	660.94M	604.29M
Cash, Cash Equivalents and Short-Term Investments	290.76M	128.05M	45.93M	33.58M	36.72M	31.72M
Total Debt	98.28M	118.90M	219.28M	223.59M	161.33M	153.65M
Total Liabilities	645.03M	597.87M	641.69M	560.06M	374.36M	315.26M
Stockholders Equity	452.54M	411.57M	370.19M	337.62M	286.58M	289.03M
Cash Flow
Free Cash Flow	268.25M	227.46M	44.49M	-51.48M	8.50M	138.79M
Operating Cash Flow	308.83M	262.44M	96.27M	83.75M	84.77M	156.36M
Investing Cash Flow	-37.16M	-32.15M	-49.29M	-122.27M	-67.08M	-7.82M
Financing Cash Flow	-57.15M	-143.61M	-34.36M	35.85M	-13.17M	-143.44M

Baguio Green Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1397, the sentiment is Positive. The current price of 1.15 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.24, and above the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.04 is Neutral, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1397.

Baguio Green Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	75 Outperform	HK$531.20M	6.00	21.36%	3.17%	6.12%	78.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1790	60 Neutral	HK$520.00M	7.78	4.69%	―	17.22%	-21.23%
0979	54 Neutral	HK$427.24M	-26.69	-34.09%	―	-3.00%	-7.27%
0436	52 Neutral	HK$203.39M	-12.18	-1.91%	2.46%	-5.95%	33.73%
1395	51 Neutral	HK$184.92M	15.18	4.68%	―	38.07%	―
1845	46 Neutral	HK$213.33M	-3.88	-12.96%	―	-9.79%	-1187.50%