Recently have been looking at a couple of small caps. 2 Small caps that I have glanced through would be Johnson Holdings (Hkex: 1955) and Baguio Green (Hkex: 1397).

(Jonhnson Holdings on the left and Baguio Green on the right)

Both companies operate in the same industry in Hong Kong, the cleaning and waste management industry. The main customers of the industry would be the government and customers with large facilities such as power stations and offices.

(Just in case you do not know what cleaners i am talking about)

Why the sudden interest? They just appeared on screeners hence took a glance at it.

Ratios Comparison

Year 2018 2019 2020
Company Baguio Green Johnson Holdings Baguio Green Johnson Holdings Baguio Green Johnson Holdings
Revenue 1429.5 m 1433.3m 1397.5 m 1784.9 m 1131.8 m 2767.4 m
Gross Profit 92.9 m 103.5m 70.5 m 121.1 m 63.5 m 283.8 m
Gross Profit Margin 6.49% 7.2% 5.0% 6.7% 5.6% 10.2%
Net Profit 16.4 m 21.8 m -11.0 m 28.4m 51.4 m 188.5m
Net Profit Margin 1.1% 1.5% -0.7% 1.5% 4.5% 6.8%
Liability to Asset Percentage 63.9% 64.6% 66.6% 56.2% 52.1% 49.1%
Return on Equity 6.5% 13.5% -4.7% 9.47% 17.7% 38.5%
Return on Asset 2.35% 4.78% -1.5% 4.15% 8.5% 19.6%