Beijing Enterprises Water Group Limited (HK:0371)
:0371
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Beijing Enterprises Water Group
(0371)
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Rating:60Neutral
Price Target:
HK$3.00
▲(19.05% Upside)
Action:ReiteratedDate:10/17/25
The stock's overall score is driven by a balanced valuation with an attractive dividend yield, offset by financial risks due to high leverage and modest profitability. Technical indicators suggest neutral to slightly bearish momentum, requiring cautious monitoring.
Positive Factors
Regulated, contract-backed business model
BEWG operates in regulated water services with municipal contracts and PPPs that provide predictable demand and multi-year revenue visibility. This structural model reduces exposure to cyclical end-market swings, supports long-term planning, and creates high barriers to entry for competitors.
Negative Factors
High leverage and low equity buffer
A debt-to-equity ratio of 2.43 and equity ratio under 20% mean the company relies heavily on debt financing. This elevates refinancing, interest-rate, and rating risks, constrains balance sheet flexibility for new projects, and increases vulnerability to macro shocks in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated, contract-backed business model
BEWG operates in regulated water services with municipal contracts and PPPs that provide predictable demand and multi-year revenue visibility. This structural model reduces exposure to cyclical end-market swings, supports long-term planning, and creates high barriers to entry for competitors.
Read all positive factors
Beijing Enterprises Water Group (0371) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$27.84B
Dividend Yield6.48%
Average Volume (3M)22.21M
Price to Earnings (P/E)13.5
Beta (1Y)0.43
Revenue Growth9.77%
EPS Growth-0.62%
CountryHK
Employees85,870
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.07
Shares Outstanding10,046,610,000
10 Day Avg. Volume18,925,477
30 Day Avg. Volume22,210,662
Financial Highlights & Ratios
PEG Ratio-2.35
Price to Book (P/B)0.71
Price to Sales (P/S)0.97
P/FCF Ratio24.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$3.20Price Target Upside26.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.16
Revenue Forecast (FY)HK$20.78B
Beijing Enterprises Water Group Business Overview & Revenue Model
Company Description
Beijing Enterprises Water Group Limited, together with its subsidiaries, provides water treatment services. The company operates through Sewage and Reclaimed Water Treatment and Construction Services, Water Distribution Services, and Technical and...
How the Company Makes Money
Beijing Enterprises Water Group generates revenue primarily through the provision of water supply and wastewater treatment services. The company earns money by charging municipalities and industrial clients for the water they supply and the treatm...
Beijing Enterprises Water Group Earnings Call Summary
Earnings Call Date:Mar 26, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
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
65
Positive
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.25B | 25.83B | 26.97B | 21.48B | 27.88B | 25.36B |
| Gross Profit | 9.58B | 9.57B | 9.90B | 9.74B | 10.37B | 9.67B |
| EBITDA | 7.05B | 7.40B | 8.29B | 7.17B | 9.63B | 8.67B |
| Net Income | 1.71B | 1.93B | 2.19B | 1.44B | 4.41B | 4.42B |
Balance Sheet | ||||||
| Total Assets | 165.93B | 177.24B | 165.49B | 183.95B | 183.62B | 174.40B |
| Cash, Cash Equivalents and Short-Term Investments | 8.65B | 9.59B | 11.26B | 11.58B | 11.22B | 14.70B |
| Total Debt | 75.38B | 80.54B | 82.11B | 76.00B | 80.49B | 72.43B |
| Total Liabilities | 109.88B | 117.70B | 116.84B | 128.49B | 124.33B | 125.09B |
| Stockholders Equity | 35.41B | 35.41B | 28.39B | 32.69B | 38.81B | 36.16B |
Cash Flow | ||||||
| Free Cash Flow | 1.69B | 1.05B | -1.81B | -1.40B | -6.68B | -7.79B |
| Operating Cash Flow | 2.49B | 2.08B | -396.96M | -364.83M | -4.32B | -6.10B |
| Investing Cash Flow | -855.46M | -583.76M | -2.25B | -1.13B | 3.16B | 332.50M |
| Financing Cash Flow | -2.54B | -2.64B | 1.14B | 4.88B | -3.06B | 8.10B |
Beijing Enterprises Water Group Technical Analysis
Positive
2.52
Price Trends
2.78
Positive
2.65
Positive
2.58
Positive
Market Momentum
>-0.01
Positive
50.85
Neutral
53.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0371, the sentiment is Positive. The current price of 2.52 is below the 20-day moving average (MA) of 2.78, below the 50-day MA of 2.78, and below the 200-day MA of 2.58, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$576.01M | 1.91 | 6.27% | 6.03% | 4.85% | -4.80% | |
70 Outperform | HK$1.73B | 4.09 | 2.82% | ― | 3.04% | 6.91% | |
69 Neutral | HK$648.34M | 3.87 | 3.62% | ― | -9.45% | -17.46% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | HK$52.17B | 3.97 | 8.14% | 4.96% | -37.73% | 13.53% | |
63 Neutral | HK$8.16B | 4.22 | 6.61% | 5.22% | -9.02% | -39.00% | |
60 Neutral | HK$27.84B | 13.49 | 5.58% | 6.48% | 9.77% | -0.62% |
* Utilities Sector Average
HK:0371
Beijing Enterprises Water Group
2.78
0.61
28.23%
HK:0855
China Water Affairs Group
5.00
-0.67
-11.86%
HK:0270
Guangdong Investment
7.98
2.56
47.26%
HK:6136
Kangda International Environmental Co Ltd
0.75
0.45
150.00%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.67
0.17
34.00%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.63
0.09
16.67%
Beijing Enterprises Water Group Corporate Events
Beijing Enterprises Water Group Clarifies Terms for New Executive Director
Jan 2, 2026
Beijing Enterprises Water Group has issued a supplemental announcement clarifying the terms of appointment for its newly named executive director, Ms. Li, following its earlier notice on changes to executive directors and the chairmanship of its s...
Beijing Enterprises Water Group Revamps Board With New Executive Director and Senior Resignations
Dec 18, 2025
Beijing Enterprises Water Group has reshuffled its top management, appointing Ms. Li Yining as an executive director effective 18 December 2025, as part of its ongoing leadership renewal. Li, a senior economist and vice president of Beijing Enterp...
Beijing Enterprises Water Group Sets Out Board and Committee Composition
Dec 18, 2025
Beijing Enterprises Water Group announced the current composition of its board of directors, listing executive, non-executive and independent non-executive members, including Chairman Xiong Bin and Chief Executive Officer Zhou Min. The company als...
Beijing Enterprises Water Group Renews Financial Service Agreements with ABC Group
Dec 15, 2025
Beijing Enterprises Water Group has announced the renewal and setting of annual caps for Continuing Connected Transactions (CCT) with ABC Group, a principal banking partner, for the financial years ending 2026, 2027, and 2028. The transactions, wh...
Beijing Enterprises Water Group Completes RMB1 Billion Medium-term Notes Issuance
Dec 9, 2025
Beijing Enterprises Water Group announced the completion of its issuance of the 2025 Medium-term Notes Series 3, raising RMB1 billion with a 2.24% annual coupon rate. The proceeds from this issuance are intended to repay loans from financial insti...
Beijing Enterprises Water Group Issues 2025 Medium-term Notes Series 3
Dec 5, 2025
Beijing Enterprises Water Group announced the issuance of its 2025 Medium-term Notes Series 3, amounting to RMB1 billion with a five-year term, to refinance loans from financial institutions outside Chinese Mainland. This move is part of the compa...
Beijing Enterprises Water Group Completes RMB2 Billion Note Issuance
Nov 19, 2025
Beijing Enterprises Water Group has successfully completed the issuance of its 2025 Medium-term Notes Series 2, raising a total principal of RMB2 billion. The proceeds from this issuance are intended to repay loans from financial institutions outs...
Beijing Enterprises Water Group Issues 2025 Medium-term Notes
Nov 13, 2025
Beijing Enterprises Water Group announced the issuance of its 2025 Medium-term Notes Series 2, with a principal amount of RMB2 billion, in the People’s Republic of China. The proceeds from these notes, which have terms of three and five year...
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.