Beijing Enterprises Environment Group Limited (0154) AI Stock Analysis

• Market Cap: HK$795.19M
• Dividend Yield: N/A
• Average Volume (3M): 215.67K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,166
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.09
• Shares Outstanding: 1,500,360,200
• 10 Day Avg. Volume: 287,800
• 30 Day Avg. Volume: 215,666
• PEG Ratio: 0.03
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 1.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.50 ▼(-5.66% Downside)

The overall stock score is driven by a strong valuation due to a low P/E ratio, suggesting potential undervaluation. However, this is offset by moderate financial performance with significant concerns in cash flow generation and a bearish technical outlook. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Operational Efficiency

Strong operational efficiency and profitability margins indicate the company's ability to manage costs effectively, enhancing long-term sustainability and competitive positioning in the waste management industry.

Market Position

As a leading environmental protection company in China, the firm benefits from a strong market position, providing a competitive edge in securing contracts and partnerships, essential for long-term growth and stability.

Partnerships and Contracts

Partnerships with governments and corporations provide a stable revenue base through long-term contracts, ensuring consistent cash flow and reinforcing the company's market presence and growth prospects.

Negative Factors

Revenue Decline

The decline in revenue growth poses a risk to the company's ability to expand and maintain its market position, potentially affecting its long-term financial health and operational capabilities.

Cash Flow Issues

The lack of positive cash flow highlights potential liquidity issues, which could hinder the company's ability to fund operations and invest in growth initiatives, impacting long-term sustainability.

Leverage Concerns

Moderate leverage requires careful management to avoid over-leverage, which could strain financial resources and limit the company's ability to respond to market changes or invest in growth opportunities.

Beijing Enterprises Environment Group Limited Business Overview & Revenue Model

Company Description

Beijing Enterprises Environment Group Limited, an investment holding company, engages in the solid waste treatment business in Hong Kong and Mainland China. It operates through Solid Waste Treatment and Ecological Construction Services segments. As of December 31, 2021, the company operated 10 solid waste treatment projects, including 9 household waste incineration power generation projects with waste treatment capacity of approximately 11,125 tonnes per day; and one hazardous and medical waste treatment project with waste treatment capacity of 40,840 tonnes per year. It also sells electricity and steam generated from waste incineration; provides ecological construction and design, and project survey and design services; and construction project management services. The company was formerly known as Beijing Development (Hong Kong) Limited and changed its name to Beijing Enterprises Environment Group Limited in July 2016. Beijing Enterprises Environment Group Limited was incorporated in 1963 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Beijing Enterprises Environment Group Limited generates revenue through multiple key streams, primarily from its waste management and water treatment services. The company typically earns money by charging municipalities and industrial clients for the collection, treatment, and disposal of waste, as well as for the treatment of wastewater. Additional revenue is derived from the sale of recycled materials and energy generated from waste-to-energy plants. Significant partnerships with local governments and large corporations enhance its market presence and facilitate long-term contracts, providing a stable income base. Moreover, the company may benefit from government incentives and subsidies aimed at promoting environmental protection initiatives, further contributing to its earnings.

Beijing Enterprises Environment Group Limited Financial Statement Overview

Summary

The company shows moderate financial performance with strong operational efficiency and profitability margins. However, challenges in revenue growth and cash flow generation are concerning. The balance sheet indicates moderate leverage, which is manageable but requires attention. The main concern is the lack of positive cash flow, which could hinder future growth and operational funding.

Income Statement

The company exhibits moderate financial performance with some positive indicators. Gross Profit Margin improved to 36.2% from 37.9% in the previous year, suggesting better cost management. However, the Net Profit Margin has decreased to 17.2% from 8.9%, indicating reduced efficiency in converting revenues into profit. Revenue Growth Rate is negative at -17.1%, showing a decline in sales which could pose a risk if not addressed. The EBIT Margin is strong at 29.3%, and the EBITDA Margin is 42.4%, reflecting good operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet shows a stable financial position but with some areas of concern. The Debt-to-Equity Ratio stands at 1.27, indicating a moderate level of leverage, which is common in the waste management industry but requires monitoring. Return on Equity is healthy at 7.9%, demonstrating the company's ability to generate a return on shareholders' investments. The Equity Ratio is 36.1%, reflecting a balanced capital structure but with a need for careful debt management to avoid over-leverage.

Cash Flow

The cash flow position is weak, with no reported free cash flow for the current year, which is concerning. The Operating Cash Flow to Net Income Ratio cannot be assessed due to zero operating cash flow, highlighting a potential liquidity issue. Free Cash Flow to Net Income Ratio is also unavailable, indicating that the company's cash generation capabilities are uncertain. This lack of positive cash flow performance could affect the company's ability to fund operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.77B	1.77B	2.56B	2.42B	1.79B
Gross Profit	635.75M	641.70M	626.25M	768.10M	571.42M	504.68M
EBITDA	770.53M	750.80M	731.66M	811.12M	535.05M	437.61M
Net Income	301.79M	304.48M	190.95M	303.75M	264.05M	129.03M
Balance Sheet
Total Assets	11.09B	10.65B	10.90B	12.17B	10.92B	9.75B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.44B	1.21B	2.70B	1.58B	1.53B
Total Debt	5.04B	4.88B	4.91B	6.40B	4.38B	3.75B
Total Liabilities	6.57B	6.48B	6.87B	8.06B	6.93B	6.16B
Stockholders Equity	4.18B	3.84B	3.67B	3.75B	3.58B	3.19B
Cash Flow
Free Cash Flow	541.80M	355.10M	92.26M	28.94M	-588.89M	-8.97M
Operating Cash Flow	554.29M	369.32M	560.01M	643.77M	156.26M	430.84M
Investing Cash Flow	-349.22M	-413.95M	-359.92M	-559.75M	-702.07M	-383.48M
Financing Cash Flow	92.57M	190.58M	-1.35B	1.21B	573.11M	-8.96M

Beijing Enterprises Environment Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0154, the sentiment is Negative. The current price of 0.53 is above the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.55, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0154.

Beijing Enterprises Environment Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3718	66 Neutral	HK$1.39B	-18.14	-2.24%	7.75%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0154	60 Neutral	HK$795.19M	2.63	7.62%	―	―	―
1790	60 Neutral	HK$570.00M	8.53	4.69%	―	17.22%	-21.23%
0587	54 Neutral	HK$1.02B	-13.18	-2.39%	5.36%	-3.37%	-149.08%
3989	50 Neutral	HK$1.11B	4.11	3.71%	―	-5.24%	-17.75%
0895	38 Underperform	HK$5.11B	-2.32	-27.89%	―	-3.21%	-34.90%

Beijing Enterprises Environment Group Limited Corporate Events

Beijing Enterprises Environment Group Revamps Board with Two New Executive Directors

Beijing Enterprises Environment Group Limited has announced a board reshuffle effective 30 December 2025, with executive directors Sha Ning and Yu Jie stepping down—Sha due to reaching retirement age and Yu to focus on his duties at Beijing Enterprises Holdings Limited. The company has simultaneously appointed Li Yining, a senior economist and vice president of Beijing Enterprises Holdings with extensive experience in corporate operations and asset management, and Liu Li, a chief senior economist with a background in strategic investment, M&A, and human resources, as new executive directors. The smooth transition, with both departing directors reporting no disagreements with the board, signals continuity in governance while bringing in executives with strong group and state-owned enterprise experience, potentially reinforcing the company’s strategic alignment and management depth within the broader Beijing Enterprises ecosystem.

The most recent analyst rating on (HK:0154) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Environment Group Limited stock, see the HK:0154 Stock Forecast page.

Beijing Enterprises Environment Group Sets Out Board and Committee Line-Up

Beijing Enterprises Environment Group Limited has announced the current composition of its board of directors, led by chairman and executive director Chen Xinguo and chief executive officer Li Ai, alongside three other executive directors and five independent non-executive directors, reflecting a governance structure that combines management representation with external oversight. The company has also confirmed the membership of its three key board committees—Audit, Remuneration and Nomination—assigning chair roles primarily to independent non-executive directors, a move that underlines its adherence to corporate governance best practices and provides stakeholders with clarity on oversight responsibilities as of 30 December 2025.

The most recent analyst rating on (HK:0154) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Environment Group Limited stock, see the HK:0154 Stock Forecast page.