Baguio Green Group’s 2025 Interim Results and Strategic Growth in Hong Kong’s Green Economy

Baguio Green Group (01397.HK) has positioned itself as a key player in Hong Kong’s green economy, with its 2025 interim results and strategic initiatives reflecting robust earnings momentum and a clear alignment with circular economy trends. The company’s projected profit after tax of not less than HK$58 million for the first half of 2025—a 125% increase compared to the same period in 2024—underscores its operational efficiency and strategic pivots [1]. This growth is driven by improved gross margins, gains from the disposal of underutilized assets, and reduced financial costs [1]. The board meeting scheduled for August 28, 2025, will finalize these results and consider an interim dividend, a move that could signal confidence in sustained profitability [2].

Strategic expansion into high-growth areas further strengthens Baguio’s position. The company has secured two 35-month contracts from Hong Kong’s Environmental Protection Department (EPD), valued at approximately HK$43 million, to supply smart food waste recycling machines and smart balances [4]. These contracts align with Hong Kong’s zero landfill by 2035 target and demonstrate Baguio’s innovation in leveraging IoT-enabled technology for waste management [4]. Additionally, the group’s first marine refuse cleansing contract in Hong Kong’s Eastern Waters marks a strategic foray into the blue economy, addressing marine pollution while capitalizing on government-led sustainability goals [4].

Baguio’s alignment with Hong Kong’s circular economy policies is evident in its technological and operational initiatives. The company’s Black Soldier Fly (BSF) technology project, which converts poultry waste into animal feed and organic fertilizer, exemplifies resource reuse and waste valorization [6]. Meanwhile, its smart waste collection systems, including IoT-enabled bins and food waste recycling machines, support Hong Kong’s waste charging scheme and circular economy framework [4]. These efforts are complemented by the group’s Share Award Plan, which allocates 10% of its issued shares to incentivize long-term growth and stakeholder alignment [3].

The broader circular economy sector in Hong Kong is gaining momentum, with government policies such as the waste charging scheme and zero landfill targets creating a regulatory tailwind [5]. Baguio’s integration of smart digital solutions and big data analytics into its operations positions it to benefit from these trends, as well as from Hong Kong’s ambition to become a sustainable finance hub [5]. However, the company’s success will depend on its ability to scale these initiatives while maintaining cost efficiency and navigating potential regulatory shifts.

For investors, Baguio’s 2025 interim results and strategic bets highlight a compelling case for growth in the circular economy. The combination of earnings resilience, policy alignment, and technological innovation suggests that the company is well-positioned to capitalize on Hong Kong’s green transition.

Source:
[1] Baguio Green Group announced that the company expects to record profit after tax of not less than HK$58 million for the six months ended June 30, 2025 [https://www.webull.com/news/13294018842887168]
[2] Baguio Green Group to Review Interim Results and Dividend [https://www.tipranks.com/news/company-announcements/baguio-green-group-to-review-interim-results-and-dividend]
[3] Baguio Green Group Ltd Announces Share Award Plan ... [https://www.tipranks.com/news/company-announcements/baguio-green-group-ltd-announces-share-award-plan-details]
[4] Baguio Green Group Secures Key Contracts in Hong Kong's Green Tech Sector [https://www.tipranks.com/news/company-announcements/baguio-green-group-secures-key-contracts-in-hong-kongs-green-tech-sector]
[5] Greenway 2025: Accelerating Changes - EEAS [https://www.eeas.europa.eu/delegations/hong-kong/greenway-2025-accelerating-changes_en]
[6] Cooperation Projects | Business Development | Home [https://www.baguio.com.hk/en/expansion/cooperation/]