Want to see HK:0371 full AI Analyst Report?
Top Page
Beijing Enterprises Water Group
(0371)
Select Model
Select Model
Rating:58Neutral
Price Target:
HK$2.50
▼(-0.79% Downside)
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
Operating Profitability / Margins
Margins in 2025 (gross ~38%, EBIT ~25%, EBITDA ~33%) reflect efficient operations within regulated concessions. These durable margins support steady operating cash flows, provide a structural buffer against volume swings, and enable reinvestment in assets and service of long-term project obligations.
Negative Factors
High and Rising Leverage
Elevated leverage (debt/equity ~3.0x and rising) materially reduces financial flexibility and increases refinancing and interest-rate risk. In a capital-intensive concession business this heightens vulnerability to project delays, tariff shortfalls or rising funding costs and can constrain growth or require asset disposals.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Profitability / Margins
Margins in 2025 (gross ~38%, EBIT ~25%, EBITDA ~33%) reflect efficient operations within regulated concessions. These durable margins support steady operating cash flows, provide a structural buffer against volume swings, and enable reinvestment in assets and service of long-term project obligations.
Read all positive factors
Beijing Enterprises Water Group (0371) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$22.63B
Dividend Yield6.48%
Average Volume (3M)22.21M
Price to Earnings (P/E)14.3
Beta (1Y)0.40
Revenue Growth-9.04%
EPS Growth-7.02%
CountryHK
Employees81,250
SectorUtilities
Sector Strength65
IndustryEngineering & Construction
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-2.61
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$3.34Price Target Upside32.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.16
Revenue Forecast (FY)HK$20.39B
Beijing Enterprises Water Group Business Overview & Revenue Model
Company Description
Beijing Enterprises Water Group Limited, an investment holding company, provides water treatment services. It operates through Sewage and Reclaimed Water Treatment and Construction Services; Water Distribution Services; Technical and Consultancy S...
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 | 24.52B | 21.48B | 27.88B |
| Gross Profit | 9.13B | 9.57B | 8.91B | 8.46B | 10.37B |
| EBITDA | 7.81B | 7.40B | 8.29B | 7.17B | 9.63B |
| Net Income | 1.83B | 1.93B | 1.99B | 1.27B | 4.41B |
Balance Sheet | |||||
| Total Assets | 183.81B | 177.24B | 165.49B | 161.75B | 183.62B |
| Cash, Cash Equivalents and Short-Term Investments | 10.86B | 9.59B | 11.26B | 13.73B | 11.22B |
| Total Debt | 93.17B | 80.54B | 79.96B | 76.00B | 80.49B |
| Total Liabilities | 129.98B | 117.70B | 116.84B | 113.03B | 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
Negative
2.52
Price Trends
2.60
Negative
2.65
Negative
2.54
Negative
Market Momentum
-0.10
Positive
17.28
Positive
14.18
Positive
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 2.52 is above the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.60, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 17.28 is Positive, neither overbought nor oversold. The STOCH value of 14.18 is Positive, 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$50.73B | 10.93 | 10.94% | 4.96% | 1.73% | 48.19% | |
70 Outperform | HK$1.80B | 6.30 | 2.82% | ― | 7.38% | 37.96% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | HK$7.15B | 7.30 | 6.61% | 5.22% | -11.32% | -8.09% | |
62 Neutral | HK$576.01M | 4.43 | 3.66% | 6.03% | -7.01% | -38.60% | |
58 Neutral | HK$22.63B | 14.34 | 5.31% | 6.48% | -9.04% | -7.02% | |
55 Neutral | HK$488.83M | 2.13 | 3.64% | ― | -7.09% | -25.68% |
* Utilities Sector Average
HK:0371
Beijing Enterprises Water Group
2.26
0.03
1.53%
HK:0855
China Water Affairs Group
4.38
-1.59
-26.58%
HK:0270
Guangdong Investment
7.76
1.44
22.88%
HK:6136
Kangda International Environmental Co Ltd
0.78
0.45
132.84%
HK:2281
Luzhou Xinglu Water (Group) Co., Ltd. Class H
0.67
0.04
6.35%
HK:3768
Kunming Dianchi Water Treatment Co., Ltd. Class H
0.48
-0.14
-22.13%
Beijing Enterprises Water Group Corporate Events
Beijing Enterprises Water Group Completes RMB1.2 Billion Medium-term Note Issue
Jun 17, 2026
Beijing Enterprises Water Group has completed the issuance of its 2026 Medium-term Notes Series 3 to qualified investors, raising RMB1.2 billion. The notes have a five-year term maturing in June 2031 and carry a coupon rate of 1.82% per annum.Proc...
Beijing Enterprises Water Group to Issue RMB1.2 Billion Medium-Term Notes for Debt Refinancing
Jun 15, 2026
Beijing Enterprises Water Group plans to issue a new five-year tranche of its 2026 Medium-term Notes Series 3 in China, with a principal amount of RMB1.2 billion approved under a broader RMB15 billion debt financing programme. The proceeds are ear...
Beijing Enterprises Water Group Sets Terms and Timetable for 2025 Final Dividend
May 27, 2026
Beijing Enterprises Water Group Limited has declared a final ordinary dividend of HKD 0.0925 per share for the financial year ended 31 December 2025, with shareholders approving the payout on 27 May 2026. Investors can receive the dividend in eith...
Beijing Enterprises Water Group Wins Shareholder Backing for Dividend, Board and Bye-Law Changes
May 27, 2026
Beijing Enterprises Water Group reported that all resolutions at its 2026 annual general meeting were approved by shareholders via poll, including the adoption of the 2025 audited financial statements and a final dividend of HK9.25 cents per share...
Beijing Enterprises Water Group Raises RMB1.5 Billion in Five-Year Medium-Term Notes
May 10, 2026
Beijing Enterprises Water Group has completed the issuance of its 2026 Medium-term Notes Series 2 to qualified investors, raising RMB1.5 billion in five-year debt maturing in May 2031 at a coupon rate of 1.92% per annum. The funds are earmarked fo...
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 ...
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.