Beijing Enterprises Water Group (0371) AI Stock Analysis

• Market Cap: HK$24.94B
• Dividend Yield: 6.61%
• Average Volume (3M): 22.21M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.54
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$2.50 ▲(0.40% 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, 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 Consultancy Services segments. It constructs sewage and reclaimed water treatment plants, and seawater desalination plants, as well as provides construction services for comprehensive renovation projects in the People's Republic of China, Malaysia, Australia, New Zealand, and the Republic of Botswana. The company also offers sewage and reclaimed water treatment services in Mainland China, the Republic of Singapore, the Portuguese Republic, Australia, and New Zealand; and distributes and sells piped water in Mainland China, the Portuguese Republic, and Australia. In addition, it provides technical and consultancy services; and sells machineries related to sewage treatment and construction services for comprehensive renovation projects in Mainland China and Australia. Further, the company is involved in the licensing of technical know-how related to sewage treatment. Beijing Enterprises Water Group Limited is headquartered in Wan Chai, Hong Kong.

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 treatment of wastewater. Key revenue streams include service fees from water supply contracts, tariffs collected from local governments, and income from the operation of water treatment plants. Additionally, the company engages in various investment projects in water-related infrastructure, which can provide significant returns over time. Collaborations with local governments and public-private partnerships in infrastructure development further contribute to its earnings, as these partnerships often include long-term contracts that secure steady revenue.

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: Negative
• Last Price: 2.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2.49 is below the 20-day moving average (MA) of 2.52, below the 50-day MA of 2.52, and above the 200-day MA of 2.43, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.52 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2281	75 Outperform	HK$644.78M	3.23	6.36%	5.87%	4.85%	-4.80%
3768	69 Neutral	HK$771.83M	2.89	4.69%	―	-9.45%	-17.46%
0270	69 Neutral	HK$45.31B	13.28	10.35%	5.00%	-37.73%	13.53%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0855	63 Neutral	HK$8.75B	9.80	6.51%	5.36%	-9.02%	-39.00%
0371	60 Neutral	HK$24.94B	17.28	4.79%	6.61%	9.77%	-0.62%
6136	60 Neutral	HK$1.05B	5.55	2.82%	―	3.04%	6.91%

Beijing Enterprises Water Group Corporate Events

Beijing Enterprises Water Group Issues 2025 Medium-term Notes Series 3

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 company’s broader financial strategy, following a successful application for RMB15 billion in debt financing instruments. The issuance includes provisions for redemption in case of a change of control, ensuring compliance with Hong Kong’s Listing Rules and maintaining transparency with stakeholders.

Beijing Enterprises Water Group Completes RMB2 Billion Note Issuance

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 outside the Chinese Mainland, potentially strengthening the company’s financial position and reducing its debt obligations.

Beijing Enterprises Water Group Issues 2025 Medium-term Notes

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 years, will be used to repay loans from financial institutions outside Mainland China. The announcement also details conditions under which the notes may need to be redeemed, particularly in the event of a change of control within the company, as stipulated under the Listing Rules.

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.

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.