HK Stock Market Move | BAGUIO GREEN (01397) fell 20% after issuing a profit warning, estimating that its after-tax profits for the first half of the year will decline by over 49% year-on-year.

BAGUIO GREEN (01397) fell 20% after a profit warning. As of the time of writing, it is down 20%, trading at HKD 0.74, with a transaction amount of HKD 2.782 million. On the news front, BAGUIO GREEN announced that it expects to achieve a post-tax profit of between HKD 27 million and HKD 30 million for the six months ending June 30, 2026, a decrease of approximately 54% to 49% compared to the HKD 58.8 million recorded for the six months ending June 30, 2025. This decline is primarily due to a drop in revenue and gross profit margin, attributed to intensified competition for several government contracts, with some market participants adopting extremely aggressive pricing strategies that are commercially unsustainable.