Beijing Enterprises Water Group Limited (HK:0371)
:0371
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Beijing Enterprises Water Group
(0371)
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Rating:58Neutral
Price Target:
HK$3.00
▲(19.05% Upside)
Action:Reiterated
Date:05/01/26
The score is mainly held back by financial risk from high and rising leverage and declining revenue, despite solid operating margins. Valuation is supportive due to a moderate P/E and a strong dividend yield, while technical signals are broadly neutral with only modest trend support.
Positive Factors
Strong operating margins
Sustained gross and EBIT margins around 38% and 25% reflect structural pricing and operating efficiency in regulated water services. These durable margins support internal funding for maintenance and expansions, provide cushion versus revenue swings, and underpin longer‑term cash generation ability.
Negative Factors
High and rising leverage
Elevated leverage near 3x D/E increases refinancing and interest‑rate sensitivity for a capital‑intensive utility. Rising debt reduces headroom for new project investments without raising funding costs, amplifies downside risk if project payments or tariff indexation falter, and constrains balance sheet flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating margins
Sustained gross and EBIT margins around 38% and 25% reflect structural pricing and operating efficiency in regulated water services. These durable margins support internal funding for maintenance and expansions, provide cushion versus revenue swings, and underpin longer‑term cash generation ability.
Read all positive factors
Beijing Enterprises Water Group (0371) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$28.94B
Dividend Yield6.48%
Average Volume (3M)22.21M
Price to Earnings (P/E)7.7
Beta (1Y)0.37
Revenue Growth-9.04%
EPS Growth-7.02%
CountryHK
Employees85,870
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)0.16
Shares Outstanding10,046,610,000
10 Day Avg. Volume18,925,477
30 Day Avg. Volume22,210,662
Financial Highlights & Ratios
PEG Ratio-2.29
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$3.25Price Target Upside29.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.16
Revenue Forecast (FY)HK$20.74B
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
The company primarily makes money by investing in, building and operating water infrastructure projects and earning cash flows under long-term agreements. Key revenue streams typically include: (1) Operating service income from wastewater treatmen...
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
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 | 26.97B | 21.48B | 27.88B |
| Gross Profit | 9.13B | 9.57B | 9.90B | 9.74B | 10.37B |
| EBITDA | 7.81B | 7.40B | 8.29B | 7.17B | 9.63B |
| Net Income | 1.83B | 1.93B | 2.19B | 1.44B | 4.41B |
Balance Sheet | |||||
| Total Assets | 183.81B | 177.24B | 165.49B | 183.95B | 183.62B |
| Cash, Cash Equivalents and Short-Term Investments | 10.86B | 9.59B | 11.26B | 11.58B | 11.22B |
| Total Debt | 93.17B | 80.54B | 82.11B | 76.00B | 80.49B |
| Total Liabilities | 129.98B | 117.70B | 116.84B | 128.49B | 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
Positive
2.52
Price Trends
2.80
Positive
2.73
Positive
2.63
Positive
Market Momentum
0.04
Negative
56.92
Neutral
67.61
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 2.84, below the 50-day MA of 2.80, and below the 200-day MA of 2.63, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 67.61 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$55.90B | 9.50 | 10.94% | 4.96% | 1.73% | 48.19% | |
70 Outperform | HK$1.91B | 4.01 | 2.82% | ― | 7.38% | 37.96% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | HK$7.97B | 4.22 | 6.61% | 5.22% | -9.02% | -39.00% | |
62 Neutral | HK$601.80M | 5.11 | 3.64% | 6.03% | -7.01% | -38.60% | |
58 Neutral | HK$28.94B | 7.74 | 5.58% | 6.48% | -9.04% | -7.02% | |
55 Neutral | HK$658.63M | 3.77 | 3.64% | ― | -7.09% | -25.68% |
* Utilities Sector Average
HK:0371
Beijing Enterprises Water Group
2.89
0.43
17.53%
HK:0855
China Water Affairs Group
4.88
-1.18
-19.51%
HK:0270
Guangdong Investment
8.55
2.41
39.18%
HK:6136
Kangda International Environmental Co Ltd
0.83
0.49
144.12%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.70
0.14
25.00%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.64
0.03
4.92%
Beijing Enterprises Water Group Corporate Events
Beijing Enterprises Water Group to Issue RMB1.5 Billion 2026 Medium-Term Notes
Apr 30, 2026
Beijing Enterprises Water Group plans to issue a new tranche of 2026 medium-term notes in mainland China, with a principal amount of RMB1.5 billion and a five-year term. The company intends to use the proceeds to repay interest-bearing debts and b...
Beijing Enterprises Water Group Sets 2026 AGM, Dividend and Share Buy‑Back Mandate on Agenda
Apr 27, 2026
Beijing Enterprises Water Group has called its annual general meeting for 27 May 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and consider a proposed final dividend of HK9.2...
Beijing Enterprises Water Wins Strong Shareholder Backing for 2026 Deposit Services Deal
Apr 22, 2026
Beijing Enterprises Water Group shareholders have overwhelmingly approved the 2026 Deposit Services Master Agreement and related transactions at a special general meeting in Hong Kong, with 97.81% of votes cast in favour. The resolution also endor...
Beijing Enterprises Water Group Raises RMB1.5 Billion via Five-Year Medium-Term Notes
Apr 14, 2026
Beijing Enterprises Water Group has completed the issuance of its 2026 Medium-term Notes Series 1 to qualified investors, raising RMB1.5 billion in five-year notes maturing in April 2031 at a coupon rate of 1.94% per annum. The funds are earmarked...
Beijing Enterprises Water Group to Issue RMB1.5 Billion 2026 Medium-Term Notes for Debt Refinancing
Apr 8, 2026
Beijing Enterprises Water Group plans to issue its 2026 Medium-term Notes Series 1 in China, with a principal amount of RMB1.5 billion and a five-year term, under a broader RMB15 billion unified registration of debt financing instruments approved ...
Beijing Enterprises Water Group Elevates CEO Zhou Min to Vice Chairman Role
Mar 27, 2026
Beijing Enterprises Water Group has re-designated long-serving chief executive officer Zhou Min as vice chairman of the board effective 27 March 2026, aligning the leadership structure with the group’s strategic development needs. Zhou, who ...
Beijing Enterprises Water Group Sets Board and Committee Roles
Mar 27, 2026
Beijing Enterprises Water Group has announced the composition of its board of directors, listing seven executive directors, one non-executive director, and five independent non-executive directors, with Xiong Bin serving as chairman and Zhou Min a...
Beijing Enterprises Water Group Profit Slips as AI and Efficiency Push Takes Center Stage
Mar 25, 2026
Beijing Enterprises Water Group reported a 7% decline in profit attributable to shareholders to RMB1.56 billion in 2025, with revenue falling to RMB22.06 billion and earnings per share easing to RMB14.55 cents, while proposing a full-year dividend...
Beijing Enterprises Water Group Proposes HKD 0.0925 Final Dividend for 2025
Mar 25, 2026
Beijing Enterprises Water Group Limited has proposed a final ordinary dividend of HKD 0.0925 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars by default with an option for shareholders to receive the payout in ...
Beijing Enterprises Water Group Delays Circular on 2026 Deposit Services Deal
Mar 11, 2026
Beijing Enterprises Water Group Limited has announced a delay in sending a shareholder circular related to its 2026 Deposit Services Master Agreement, which governs continuing connected transactions with a related party. The circular, originally s...
Beijing Enterprises Water Group Sets March Board Meeting on 2025 Results and Dividend
Feb 27, 2026
Beijing Enterprises Water Group has scheduled a board meeting for 25 March 2026 to approve the audited final results of the company and its subsidiaries for the financial year ended 31 December 2025. The board will also consider recommending a fin...
Beijing Enterprises Water Group Seeks Independent Approval for New Deposit Services Deal
Feb 13, 2026
Beijing Enterprises Water Group has entered into a new 2026 Deposit Services Master Agreement with BG Finance, under which BG Finance will continue to provide deposit services to the group, replacing the existing annual caps with new proposed caps...
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.