Beijing Enterprises Water Group (0371) AI Stock Analysis

• Market Cap: HK$25.34B
• Dividend Yield: 6.5%
• Average Volume (3M): 22.21M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.55
• Revenue Growth: 9.77%
• EPS Growth: -0.62%
• Country: HK
• Employees: 85,870
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.09
• Shares Outstanding: 10,046,610,000
• 10 Day Avg. Volume: 18,925,477
• 30 Day Avg. Volume: 22,210,662
• PEG Ratio: -2.35
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 24.04
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$2.50 ▲(0.00% Upside)

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.

Beijing Enterprises Water Group Business Overview & Revenue Model

Company Description

Beijing Enterprises Water Group Limited (0371) is a leading integrated water and wastewater treatment solutions provider based in Hong Kong. The company specializes in water supply, sewage treatment, and environmental protection services, primarily operating in Mainland China and extending its reach to other Asian countries. It is committed to sustainable development through innovative and efficient water management solutions, catering to residential, commercial, and industrial clients.

How the Company Makes Money

Beijing Enterprises Water Group makes money primarily through its water supply and sewage treatment services. The company operates under a concession model, where it partners with local governments to manage and operate water and wastewater facilities. Revenue is generated from water tariffs charged to end-users and treatment fees from municipal and industrial clients. Additionally, the company is involved in engineering and construction projects related to water infrastructure, providing another stream of income. Strategic partnerships and acquisitions also play a significant role in expanding its operational capabilities and enhancing its service offerings. These factors collectively contribute to the company's financial performance and growth.

Beijing Enterprises Water Group Financial Statement Overview

Summary

The company shows stability in gross and EBITDA margins but faces challenges in revenue growth and debt management. High debt levels and modest return on equity pose financial risks, though recent improvements in free cash flow are positive.

Income Statement

The income statement shows a mixed performance. While the company has maintained a solid gross profit margin of 37.0% for the latest year, both revenue and net income have seen a decline. Revenue growth rate over the past year is negative (-4.3%), and the net profit margin decreased to 7.5%. However, EBITDA margin remains healthy at 28.7%.

Balance Sheet

The balance sheet exhibits high leverage with a debt-to-equity ratio of 2.43, indicating a reliance on debt financing. Return on Equity (ROE) stands at 5.8%, suggesting modest profitability relative to equity. The equity ratio of 18.7% reflects a lower proportion of equity in the company's capital structure, which could imply financial risk.

Cash Flow

Cash flow analysis reveals challenges in cash generation, with free cash flow being consistently negative in previous years but turning positive in the last reported year. The operating cash flow to net income ratio is unavailable due to missing data, limiting a full evaluation of cash flow efficiency.

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

• Technical Analysis Sentiment: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.5 is above the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.49, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 60.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2281	75 Outperform	HK$679.17M	3.40	6.36%	5.50%	6.42%	-4.80%
3768	69 Neutral	HK$926.20M	3.47	4.69%	―	-9.45%	-17.46%
0270	69 Neutral	$48.64B	14.25	10.35%	4.56%	-37.73%	13.53%
6136	68 Neutral	HK$1.06B	5.61	2.82%	―	3.04%	6.91%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0855	63 Neutral	$10.22B	9.51	8.28%	4.38%	-9.36%	-29.90%
0371	60 Neutral	HK$25.34B	17.56	4.79%	6.50%	9.77%	-0.62%

Beijing Enterprises Water Group Corporate Events

Beijing Enterprises Water Group Re-designates COO to Group Chief Expert

Beijing Enterprises Water Group Limited announced the re-designation of Mr. Li Li from Chief Operating Officer to Group Chief Expert, effective October 24, 2025. This strategic move aligns with the company’s development needs and highlights Mr. Li’s extensive experience in the water industry, potentially strengthening the company’s operational and strategic capabilities.

The most recent analyst rating on (HK:0371) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Water Group stock, see the HK:0371 Stock Forecast page.

Beijing Enterprises Water Group Announces Board and Committee Roles

Beijing Enterprises Water Group has announced the composition of its board of directors and the roles within its established committees. The board includes a mix of executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Nomination, and Remuneration Committees. This announcement clarifies the leadership structure and governance framework of the company, potentially impacting its strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:0371) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Water Group stock, see the HK:0371 Stock Forecast page.

Beijing Enterprises Water Group Reports Decline in H1 2025 Earnings

Beijing Enterprises Water Group (BEWG) is a leading company in the waterworks industry, specializing in the construction and operation of water treatment plants, water distribution, and urban services across China and several international markets.

Beijing Enterprises Water Group Announces Interim Dividend for 2025

Beijing Enterprises Water Group Limited has announced an interim dividend of HKD 0.0735 per share for the six months ending June 30, 2025. Shareholders have the option to receive the dividend in RMB at an exchange rate of HKD 1 to RMB 0.912492. The ex-dividend date is set for September 8, 2025, with the payment date scheduled for October 27, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HK:0371) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Water Group stock, see the HK:0371 Stock Forecast page.

Beijing Enterprises Water Group Reports 20% Profit Decline Amid Strategic Innovations

Beijing Enterprises Water Group reported a 20% decrease in profit attributable to shareholders for the first half of 2025, impacted by an impairment provision. Despite the decline in profit, the company proposed an interim dividend increase and achieved significant improvements in free cash flow. The company continues to optimize its revenue structure and reduce administrative expenses and finance costs. Notably, it launched the ‘Smart Water Dual-Engine’ AI Agent to enhance its water operation management system, marking a significant step in the large-scale application of AI technologies across the water industry.

The most recent analyst rating on (HK:0371) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Water Group stock, see the HK:0371 Stock Forecast page.

Beijing Enterprises Water Group Schedules Board Meeting for Interim Results

Beijing Enterprises Water Group Limited has scheduled a board meeting on August 27, 2025, to approve the interim results for the first half of the year and consider recommending an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder value, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (HK:0371) stock is a Buy with a HK$2.80 price target. To see the full list of analyst forecasts on Beijing Enterprises Water Group stock, see the HK:0371 Stock Forecast page.