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Beijing Enterprises Water Group
(0371)
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Rating:56Neutral
Price Target:
HK$1.50
â–¼(-13.79% Downside)
Action:Reiterated
Date:08/27/26
The score is held back primarily by elevated leverage and weak technical trend signals (price below all major moving averages with negative MACD). These risks are partially offset by supportive valuation metrics, especially the high dividend yield and a moderate P/E, alongside improved 2025 cash generation.
Positive Factors
Operating Profitability
Healthy 2025 gross, EBIT and EBITDA margins show that the operating portfolio can produce meaningful profit despite the regulated utility model. This supports ongoing service delivery and may help fund investment, although durability still depends on maintaining volumes and tariffs.
Negative Factors
Elevated Leverage
Debt-to-equity rose to about 3.0x from roughly 2.3x, while total debt increased year over year. Elevated leverage reduces flexibility to fund projects or absorb weaker performance, and makes the company more exposed to higher funding costs during the period.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Profitability
Healthy 2025 gross, EBIT and EBITDA margins show that the operating portfolio can produce meaningful profit despite the regulated utility model. This supports ongoing service delivery and may help fund investment, although durability still depends on maintaining volumes and tariffs.
Read all positive factors
Beijing Enterprises Water Group (0371) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$14.27B
Dividend Yield10.35%
Average Volume (3M)23.80M
Price to Earnings (P/E)10.1
Beta (1Y)0.23
Revenue Growth-5.30%
EPS Growth-2.36%
CountryHK
Employees81,250
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.14
Shares Outstanding10,046,610,000
10 Day Avg. Volume22,147,362
30 Day Avg. Volume23,799,598
Financial Highlights & Ratios
PEG Ratio-2.61
Price to Book (P/B)0.80
Price to Sales (P/S)1.03
P/FCF Ratio4.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$1.94Price Target Upside11.49% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.13
Revenue Forecast (FY)HK$19.97B
Beijing Enterprises Water Group Business Overview & Revenue Model
Company Description
Beijing Enterprises Water Group Limited, an investment holding company, provides water treatment services. It operates through Sewage and Reclaimed Water Treatment and Construction Services; Water Distribution Services; Technical and Consultancy S...
How the Company Makes Money
Beijing Enterprises Water Group generally earns revenue by developing and operating water and wastewater assets under long-term contractual frameworks and by providing related engineering and operational services. Key ways the company makes money ...
Beijing Enterprises Water Group Earnings Call Summary
Earnings Call Date:Mar 26, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 31, 2027
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements such as an increase in free cash flow, improved dividends, and growth in urban resource services, significant challenges were highlighted, including a decline in main business revenue and BOT construction revenue, overseas project challenges, and a downgrade in ESG ratings. The company is making strategic shifts towards lighter assets and is focusing on operational efficiency and cash flow management to navigate fiscal challenges.Positive Updates
Increase in Free Cash Flow
Free cash flow registered a net inflow of RMB1.48 billion, marking a 35% increase compared to 2023.
Negative Updates
Decline in Main Business Revenue
Main business revenue decreased by 1% compared to 2023.
Read all updates
Q4-2024 Updates
Positive
Negative
Increase in Free Cash Flow
Free cash flow registered a net inflow of RMB1.48 billion, marking a 35% increase compared to 2023.
Read all positive updates
Company Guidance
In the 2024 Annual Results Presentation, BEWG reported key financial metrics, revealing a slight decline in main business revenue to RMB24.27 billion, a 1% decrease from 2023, while net profit attributable to the parent company rose by 12% to RMB1.68 billion. The company highlighted an increase in free cash flow by 35% to RMB1.48 billion and an annual dividend of HKD16.1 cents per share, a 2.55% increase from the previous year. Operational cash flow stood at RMB2.07 billion, with water treatment service revenue growing by 5% to RMB12.25 billion. The group also registered improvements in management costs, with overheads reduced by 7% to RMB3.07 billion, and financial expenses down by 5% to RMB3.09 billion. BEWG's strategy for 2025 focuses on enhancing cash flow, operational efficiency, and talent development, with expected revenue growth in water business by 5%, a 40% decline in construction, and a 5% increase in technical service and machinery sales. Additionally, the company's ESG efforts and strategic shifts towards lighter asset management were emphasized as part of their sustainable development goals.Beijing Enterprises Water Group Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
42
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.96B | 23.93B | 25.83B | 24.52B | 21.48B | 27.88B |
| Gross Profit | 9.10B | 9.13B | 9.57B | 8.91B | 8.46B | 10.37B |
| EBITDA | 7.76B | 7.69B | 7.64B | 8.29B | 7.38B | 9.63B |
| Net Income | 1.65B | 1.83B | 1.93B | 1.99B | 1.27B | 4.41B |
Balance Sheet | ||||||
| Total Assets | 187.51B | 183.81B | 177.24B | 165.49B | 161.75B | 183.62B |
| Cash, Cash Equivalents and Short-Term Investments | 9.60B | 10.86B | 9.59B | 11.26B | 13.73B | 11.22B |
| Total Debt | 95.58B | 93.17B | 80.54B | 79.96B | 76.00B | 80.49B |
| Total Liabilities | 132.05B | 129.98B | 117.70B | 116.84B | 113.03B | 124.33B |
| Stockholders Equity | 31.62B | 30.80B | 35.41B | 28.39B | 32.69B | 38.81B |
Cash Flow | ||||||
| Free Cash Flow | 2.27B | 5.13B | 1.05B | -1.81B | -1.40B | -6.68B |
| Operating Cash Flow | 2.91B | 6.38B | 2.08B | -396.96M | -364.83M | -4.32B |
| Investing Cash Flow | -662.76M | -562.16M | -583.76M | -2.25B | -1.13B | 3.16B |
| Financing Cash Flow | -2.89B | -5.22B | -2.64B | 1.14B | 4.88B | -3.06B |
Beijing Enterprises Water Group Technical Analysis
Negative
1.74
Price Trends
1.60
Negative
1.93
Negative
2.25
Negative
Market Momentum
-0.05
Negative
28.00
Positive
11.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0371, the sentiment is Negative. The current price of 1.74 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.60, and below the 200-day MA of 2.25, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 28.00 is Positive, neither overbought nor oversold. The STOCH value of 11.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0371.
Beijing Enterprises Water Group Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$52.66B | 10.74 | 11.01% | 6.06% | 25.38% | 43.87% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$1.61B | 4.24 | 5.09% | 0.71% | 3.75% | 94.39% | |
63 Neutral | HK$502.93M | 4.01 | 3.42% | 7.86% | -6.72% | -41.93% | |
56 Neutral | HK$14.27B | 10.13 | 5.29% | 10.35% | -5.30% | -2.36% | |
54 Neutral | HK$303.59M | 2.37 | 2.00% | 10.66% | -6.02% | -54.26% | |
53 Neutral | HK$6.36B | 6.49 | 6.84% | 6.67% | -11.32% | -8.06% |
* Utilities Sector Average
HK:0371
Beijing Enterprises Water Group
1.43
-0.91
-39.02%
HK:0855
China Water Affairs Group
3.90
-2.02
-34.19%
HK:0270
Guangdong Investment
8.06
1.09
15.60%
HK:6136
Kangda International Environmental Co Ltd
0.70
0.24
53.17%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.59
-0.16
-21.48%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.30
-0.51
-63.13%
Beijing Enterprises Water Group Corporate Events
Beijing Enterprises Water Group Secures RMB2.35 Billion Loan Tied to State-Backed Control
Oct 30, 2026
Beijing Enterprises Water Group Limited, a Hong Kong-listed water and environmental services provider, operates under a state-linked ownership chain through Beijing Enterprises Holdings Limited and Beijing Enterprises Group Company Limited. The co...
Beijing Enterprises Water Group Names New Chairman as Leadership Shifts
Oct 23, 2026
Beijing Enterprises Water Group Limited announced a leadership transition effective 23 October 2026, with executive director and board chairman Mr. Xiong Bin resigning due to job reassignment. The board stated that Mr. Xiong has no disagreement wi...
Beijing Enterprises Water Group Details Board and Committee Structure
Oct 23, 2026
Beijing Enterprises Water Group operates in the water and environmental services sector, focusing on investment, construction and operation of wastewater treatment and water supply projects in mainland China and overseas markets. The company provi...
Beijing Enterprises Water Group Sets Interim Dividend With RMB Option
Aug 26, 2026
Beijing Enterprises Water Group Limited has declared an interim ordinary dividend of HKD 0.0554 per share for the six months ended 30 June 2026, payable in Hong Kong dollars or, at shareholders’ election, in renminbi at a fixed exchange rate...
Beijing Enterprises Water Group Posts Lower Interim Profit but Maintains Dividend and Industry Lead
Aug 26, 2026
Beijing Enterprises Water Group Limited, a major player in China’s wastewater treatment and broader waterworks sector, has consolidated its status as an industry leader, topping the “Top 10 Most Influential Companies in China’s W...
Beijing Enterprises Water Group Secures RMB99.1 Million Connected Loan from BG Finance
Aug 11, 2026
Beijing Enterprises Water Group’s wholly owned subsidiary Lanshan Yuntong has secured an RMB99.1 million loan facility from BG Finance, an associate of the company’s controlling shareholders, for an 18-year term. The facility, carrying...
Beijing Enterprises Water Group Sets August Board Meeting on Interim Results and Dividend
Aug 7, 2026
Beijing Enterprises Water Group Limited has scheduled a board meeting for 26 August 2026 to review and approve the interim results for the six months ended 30 June 2026, covering the company and its subsidiaries. The board will also consider wheth...
Beijing Enterprises Water Group Updates Bermuda Registered Office and Share Registrar Details
Jul 31, 2026
Beijing Enterprises Water Group Limited operates in the environmental services sector, focusing on water treatment, wastewater management and related infrastructure projects, primarily serving municipalities and industrial customers in Greater Chi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.