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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
Resilient regulated-utility profitability
Strong operating margins provide a durable earnings base for a regulated water business. They indicate that the existing project portfolio can generate meaningful operating profit despite weaker revenue and a lower net margin.
Negative Factors
Heavy and rising leverage
High and increasing leverage reduces financial flexibility and leaves less protection if borrowing costs rise or project returns disappoint. It may also constrain future infrastructure investment and increase dependence on refinancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient regulated-utility profitability
Strong operating margins provide a durable earnings base for a regulated water business. They indicate that the existing project portfolio can generate meaningful operating profit despite weaker revenue and a lower net margin.
Read all positive factors
Beijing Enterprises Water Group (0371) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$16.97B
Dividend Yield8.83%
Average Volume (3M)35.90M
Price to Earnings (P/E)11.9
Beta (1Y)0.49
Revenue Growth-5.30%
EPS Growth-2.36%
CountryHK
Employees81,250
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.16
Shares Outstanding10,046,610,000
10 Day Avg. Volume68,545,100
30 Day Avg. Volume35,902,217
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$1.90Price Target Upside9.05% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.93B | 25.83B | 24.52B | 21.48B | 27.88B |
| Gross Profit | 9.13B | 9.57B | 8.91B | 8.46B | 10.37B |
| EBITDA | 7.81B | 7.40B | 8.29B | 7.17B | 9.63B |
| Net Income | 1.83B | 1.93B | 1.99B | 1.27B | 4.41B |
Balance Sheet | |||||
| Total Assets | 183.81B | 177.24B | 165.49B | 161.75B | 183.62B |
| Cash, Cash Equivalents and Short-Term Investments | 10.86B | 9.59B | 11.26B | 13.73B | 11.22B |
| Total Debt | 93.17B | 80.54B | 79.96B | 76.00B | 80.49B |
| Total Liabilities | 129.98B | 117.70B | 116.84B | 113.03B | 124.33B |
| Stockholders Equity | 30.80B | 35.41B | 28.39B | 32.69B | 38.81B |
Cash Flow | |||||
| Free Cash Flow | 5.13B | 1.05B | -1.81B | -1.40B | -6.68B |
| Operating Cash Flow | 6.38B | 2.08B | -396.96M | -364.83M | -4.32B |
| Investing Cash Flow | -562.16M | -583.76M | -2.25B | -1.13B | 3.16B |
| Financing Cash Flow | -5.22B | -2.64B | 1.14B | 4.88B | -3.06B |
Beijing Enterprises Water Group Technical Analysis
Negative
1.74
Price Trends
2.09
Negative
2.30
Negative
2.39
Negative
Market Momentum
-0.14
Negative
27.77
Positive
40.51
Neutral
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 below the 20-day moving average (MA) of 1.84, below the 50-day MA of 2.09, and below the 200-day MA of 2.39, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 27.77 is Positive, neither overbought nor oversold. The STOCH value of 40.51 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$58.58B | 11.96 | 11.01% | 5.44% | 25.38% | 43.87% | |
68 Neutral | HK$1.76B | 4.80 | 5.09% | 0.64% | 3.75% | 94.39% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | HK$515.83M | 4.14 | 3.42% | 7.67% | -6.65% | -41.93% | |
56 Neutral | HK$16.97B | 11.87 | 5.29% | 8.83% | -5.30% | -2.36% | |
54 Neutral | HK$432.23M | 3.07 | 2.00% | 10.66% | -6.02% | -54.26% | |
53 Neutral | HK$7.24B | 7.33 | 6.84% | 6.36% | -11.32% | -8.06% |
* Utilities Sector Average
HK:0371
Beijing Enterprises Water Group
1.67
-0.75
-31.02%
HK:0855
China Water Affairs Group
4.40
-1.45
-24.81%
HK:0270
Guangdong Investment
8.97
2.00
28.68%
HK:6136
Kangda International Environmental Co Ltd
0.79
0.42
113.90%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.60
-0.14
-18.48%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.38
-0.31
-44.93%
Beijing Enterprises Water Group Corporate Events
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...
Beijing Enterprises Water Group Raises RMB1.2 Billion via Medium-Term Notes Issue
Jul 7, 2026
Beijing Enterprises Water Group Limited has completed the issuance of its 2026 Medium-term Notes Series 4 to qualified investors, raising a total principal amount of RMB1.2 billion. The notes carry a five-year term maturing in July 2031 with an an...
Beijing Enterprises Water Group Raises RMB1.2 Billion via Medium-term Notes for Debt Refinancing
Jul 6, 2026
Beijing Enterprises Water Group has completed the issuance of its 2026 Medium-term Notes Series 4 to qualified investors, raising a total principal amount of RMB1.2 billion. The notes carry a 1.76% annual coupon, have a five-year term maturing in ...
Beijing Enterprises Water Group to Issue RMB1.2 Billion Medium-Term Notes for Refinancing
Jul 2, 2026
Beijing Enterprises Water Group Limited plans to issue its 2026 Medium-term Notes Series 4 in the Chinese domestic market, with a principal amount of RMB1.2 billion and a five-year term under a broader RMB15 billion debt financing registration app...
Beijing Enterprises Water Group Completes RMB1.2 Billion Medium-term Note Issue
Jun 17, 2026
Beijing Enterprises Water Group has completed the issuance of its 2026 Medium-term Notes Series 3 to qualified investors, raising RMB1.2 billion. The notes have a five-year term maturing in June 2031 and carry a coupon rate of 1.82% per annum.Proc...
Beijing Enterprises Water Group to Issue RMB1.2 Billion Medium-Term Notes for Debt Refinancing
Jun 15, 2026
Beijing Enterprises Water Group plans to issue a new five-year tranche of its 2026 Medium-term Notes Series 3 in China, with a principal amount of RMB1.2 billion approved under a broader RMB15 billion debt financing programme. The proceeds are ear...
Beijing Enterprises Water Group Sets Terms and Timetable for 2025 Final Dividend
May 27, 2026
Beijing Enterprises Water Group Limited has declared a final ordinary dividend of HKD 0.0925 per share for the financial year ended 31 December 2025, with shareholders approving the payout on 27 May 2026. Investors can receive the dividend in eith...
Beijing Enterprises Water Group Wins Shareholder Backing for Dividend, Board and Bye-Law Changes
May 27, 2026
Beijing Enterprises Water Group reported that all resolutions at its 2026 annual general meeting were approved by shareholders via poll, including the adoption of the 2025 audited financial statements and a final dividend of HK9.25 cents per share...
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.