Beijing Enterprises Urban Resources Group Ltd. (3718) AI Stock Analysis

• Market Cap: HK$1.39B
• Dividend Yield: 7.75%
• Average Volume (3M): 606.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 67,219
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.01
• Shares Outstanding: 3,556,664,000
• 10 Day Avg. Volume: 307,600
• 30 Day Avg. Volume: 606,666
• PEG Ratio: -0.64
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -36.67
• 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): HK$55.17B

• Rating: 66 Neutral
• Price Target: HK$0.50 ▲(19.05% Upside)

The stock's overall score is driven by strong technical momentum and revenue growth, but is tempered by challenges in profitability and cash flow management. The high dividend yield is a positive, but the negative P/E ratio raises concerns about valuation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Strategic Partnerships

Partnerships with local governments provide a stable client base and enhance operational reach, ensuring sustained revenue and market presence.

Operational Efficiency

Investments in technology and infrastructure improve efficiency, reduce costs, and expand service offerings, supporting long-term profitability.

Negative Factors

Declining Net Income

A decline in net income can impact profitability and shareholder returns, posing challenges to financial sustainability and growth.

Increased Leverage

Higher leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in future growth.

Beijing Enterprises Urban Resources Group Ltd. Business Overview & Revenue Model

Company Description

Beijing Enterprises Urban Resources Group Ltd. (3718) is a leading enterprise based in China that specializes in urban resource management. The company operates primarily in the waste management and environmental services sector, focusing on the collection, treatment, and recycling of municipal solid waste. Additionally, it engages in the development and operation of waste-to-energy projects, contributing to sustainable urban development through innovative waste management solutions and resource recovery.

How the Company Makes Money

The company generates revenue primarily through its waste management services, including the collection, treatment, and disposal of municipal solid waste. Key revenue streams include fees charged to municipalities and private clients for waste collection and treatment services, as well as income from the sale of recovered materials and energy produced from waste-to-energy facilities. Strategic partnerships with local governments and municipalities enhance its operational footprint and provide a stable client base. Moreover, the company's investment in advanced waste treatment technologies and infrastructure allows it to optimize operational efficiency and expand its service offerings, thereby contributing to its overall earnings.

Beijing Enterprises Urban Resources Group Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and stable gross profits, but faces challenges with declining net income and increased leverage. Cash flow management is a concern due to persistent negative free cash flow.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a notable increase from 2019 to 2024. Gross profit margin and net profit margin are stable, with gross profit margins hovering around 19% and net profit margins experiencing a decline in 2024. EBIT and EBITDA margins indicate healthy operational efficiency, although there is a slight decline in EBIT margin in 2024. Revenue growth is positive, but net income has decreased in 2024 compared to previous years.

Balance Sheet

The balance sheet reflects a significant increase in total assets and stockholder's equity over the years. However, the debt-to-equity ratio has increased, indicating higher leverage, which poses a risk. The equity ratio has decreased slightly, suggesting a higher proportion of assets are financed by debt. Return on equity has declined in 2024, reflecting reduced profitability relative to equity.

Cash Flow

Cash flow from operations has been inconsistent, with free cash flow remaining negative over the years. The operating cash flow to net income ratio is unavailable in 2024 due to zero operating cash flow, indicating potential cash flow management issues. The free cash flow to net income ratio is also unavailable for the latest year, highlighting ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.88B	6.41B	5.59B	4.95B	4.45B	3.52B
Gross Profit	1.30B	1.22B	1.13B	1.00B	1.16B	1.08B
EBITDA	1.22B	1.07B	1.21B	1.05B	1.22B	1.09B
Net Income	-73.76M	27.34M	284.73M	238.58M	410.36M	359.71M
Balance Sheet
Total Assets	9.07B	9.13B	8.94B	8.74B	8.16B	7.12B
Cash, Cash Equivalents and Short-Term Investments	1.16B	999.88M	1.08B	1.62B	1.72B	1.74B
Total Debt	2.91B	2.86B	2.83B	3.00B	2.37B	1.94B
Total Liabilities	4.87B	5.07B	4.71B	4.48B	3.94B	3.45B
Stockholders Equity	3.38B	3.28B	3.48B	3.37B	3.50B	3.01B
Cash Flow
Free Cash Flow	257.11M	-43.66M	-316.36M	-425.68M	-439.02M	-350.33M
Operating Cash Flow	638.75M	341.31M	500.07M	379.19M	501.62M	626.34M
Investing Cash Flow	-387.59M	-362.07M	-690.84M	-793.50M	-1.03B	-966.42M
Financing Cash Flow	-503.24M	-253.03M	-142.94M	422.82M	475.29M	903.16M

Beijing Enterprises Urban Resources Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3718, the sentiment is Negative. The current price of 0.42 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.41, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 4.51 is Positive, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3718.

Beijing Enterprises Urban Resources Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1397	75 Outperform	HK$493.85M	5.58	21.36%	3.17%	6.12%	78.64%
3718	66 Neutral	HK$1.39B	-18.14	-2.24%	7.75%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0154	60 Neutral	HK$795.19M	2.63	7.62%	―	―	―
1790	60 Neutral	HK$570.00M	8.53	4.69%	―	17.22%	-21.23%
0587	54 Neutral	HK$1.02B	-13.18	-2.39%	5.36%	-3.37%	-149.08%
3989	50 Neutral	HK$1.11B	4.11	3.71%	―	-5.24%	-17.75%

Beijing Enterprises Urban Resources Group Ltd. Corporate Events

Beijing Enterprises Urban Resources Appoints New Executive Director as Li Li Resigns

Beijing Enterprises Urban Resources Group has announced a board change effective 18 December 2025, with executive director Li Li resigning to focus on other work within the group and confirming there is no disagreement with the board or issues requiring shareholder attention. The company has appointed Beijing Enterprises Water Group senior vice president and veteran environmental-industry executive Yu Liguo as an executive director for a three-year term on annual emoluments of HK$180,000, bringing extensive financial, investment and industry-association experience that may further strengthen strategic alignment with its controlling shareholder and deepen its positioning in China’s environmental protection sector.

The most recent analyst rating on (HK:3718) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Urban Resources Group Ltd. stock, see the HK:3718 Stock Forecast page.

Beijing Enterprises Urban Resources Sets Out Board and Committee Structure

Beijing Enterprises Urban Resources Group Limited has outlined the composition of its board of directors, which includes a mix of executive and independent non-executive directors, reflecting a standard Hong Kong–listed corporate governance structure. The company also detailed the membership and leadership of its audit, remuneration and nomination committees, designating independent non-executive director Wu Tak Kong as chair of the audit committee and member of the other two, and independent non-executive director Du Huanzheng as chair of the remuneration committee, moves that underscore the board’s emphasis on independent oversight and structured governance for stakeholders.

The most recent analyst rating on (HK:3718) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Urban Resources Group Ltd. stock, see the HK:3718 Stock Forecast page.

Beijing Enterprises Urban Resources Group Wins Major Environmental Service Tenders in China

Beijing Enterprises Urban Resources Group Ltd. announced that its subsidiary, BE Urban Environmental Services PRC, has successfully won tenders for two significant projects in Chengde City, Hebei Province, and Nanjing City, Jiangsu Province. These projects, valued at RMB 185.13 million and RMB 260.18 million respectively, involve comprehensive environmental sanitation services, including waste collection, sanitation facility maintenance, and cityscape management. The announcement highlights the company’s strategic expansion in China’s environmental services market, although formal contracts are yet to be signed, and actual revenues may vary due to market conditions.

The most recent analyst rating on (HK:3718) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Beijing Enterprises Urban Resources Group Ltd. stock, see the HK:3718 Stock Forecast page.