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Beijing Enterprises Water Group (0371) Fair Value & Analysis

Utilities · HK · Market cap HK$22.7B

BE Beijing Enterprises Water Group 0371 · HK
PriceHK$2.27
Fair ValueHK$3.60
Upside+58.9%
Quality55/100
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Weak Growth
Thin margins · 7.6% net margin
High debt · generates free cash flow
6.51% dividend yield
Mixed vs. peers (8/14)
Narrow moat 41/100
Evidence: Medium Range HK$2.70 – HK$4.50 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 8 days ago

Fair value updated Aug 2, 2026, revised from HK$3.58 to HK$3.60 (+0.6%) since Jul 1, 2026. Share price −1.5% over the past month.

A solid business, screening 59% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$2.70). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$2.86 HK$1.24 Fair Value HK$3.60 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$1.24 – HK$2.86 · fair‑value band HK$2.70 – HK$4.50 · the HK$2.27 price screens below the HK$3.60 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Beijing Enterprises Water Group (0371) currently trades at HK$2.27, while our model-based Fair Value estimate is HK$3.60, implying the stock looks roughly 58.9% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Beijing Enterprises Water Group generated revenue of HK$22.1B at a net margin of 7.6%. Revenue declined 10.5% year over year. It earns a return on equity of 4.8%. Net debt stands at HK$82.3B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$2.70 (bear case) to HK$4.50 (bull case); at HK$2.27, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at 59%, 0371 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$3.48 HK$11.45 HK$24.51 80
Residual Income HK$2.44 HK$2.54 HK$2.59 76
Rev-Margin DCF HK$1.70 HK$6.38 HK$16.21 74
All 26 models by family
DCF Models
FCF DCF HK$3.99 HK$8.92 HK$24.64 38
Owner Earnings HK$3.97 HK$14.08 31
5Y Revenue Exit HK$1.12 HK$4.99 HK$13.07 39
5Y EBITDA Exit HK$2.10 HK$6.98 HK$16.52 41
5Y P/E Exit HK$3.38 HK$8.30 38
10Y Revenue Exit HK$1.87 HK$8.88 HK$13.10 36
10Y EBITDA Exit HK$2.77 HK$10.99 HK$25.04 37
10Y P/E Exit HK$0.9500 HK$5.61 HK$12.70 35
Earnings-Based
Graham-Dodd HK$1.24 HK$8.65 HK$12.14 54
Lynch FV HK$4.47 HK$6.38 HK$8.30 50
PEG = 1.0 HK$4.47 HK$6.38 HK$8.30 46
EPV HK$0.2800 HK$1.10 HK$1.81 59
Dividend Discount
Gordon GGM HK$1.53 HK$3.19 HK$5.06 70
DDM Multi-Stage HK$1.53 HK$2.69 HK$3.35 61
Multiples
P/E Multiple HK$2.46 HK$3.28 HK$4.10 63
P/S Multiple HK$2.32 HK$3.10 HK$3.87 58
P/B Multiple HK$2.32 HK$3.10 HK$3.87 55
EV/EBIT HK$1.98 HK$4.18 HK$6.37 53
EV/EBITDA HK$1.16 HK$3.08 HK$5.01 54
EV/Revenue HK$1.35 HK$3.14 43
Asset-Based
NCAV (Graham) HK$1.54 HK$2.06 HK$3.07 50
Growth DCF
Growth DCF HK$3.48 HK$11.45 HK$24.51 80
Rev-Margin DCF HK$1.70 HK$6.38 HK$16.21 74
Economic Profit
Residual Income HK$2.44 HK$2.54 HK$2.59 76
ROIC Compounder HK$0.2800 HK$1.10 HK$1.81 72
Growth Earnings
Growth-Adj P/E HK$5.58 HK$7.98 HK$10.37 68

Widest divergence: Growth Earnings (HK$7.98) versus Economic Profit (HK$1.10). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$22.1B
Revenue growth (YoY) -10.5%
Net margin 7.6%
Return on equity 4.8%
Free cash flow HK$5.1B FY2025
P/E ratio 13.3
More key figures
Operating margin 18.6%
EPS (TTM) HK$0.0800
Dividend yield 6.5%
EPS growth (YoY) +23.7%
Net debt HK$82.3B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 52 · Market factors (momentum, volatility) 42

Profitability 21
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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 Services and Sale of Machineries; and Urban Resources Services segments.

Full 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 Services and Sale of Machineries; and Urban Resources Services segments. The company constructs and operates sewage and reclaimed water treatment plants, and seawater desalination plants, as well as offers construction services for renovation projects in the People's Republic of China, Malaysia, Australia, and the Republic of Botswana. It also provides sewage and reclaimed water treatment services in People's Republic of China, Singapore, Portugal, Australia, New Zealand, and Saudi Arabia; and distributes and sells piped water in the People's Republic of China, Portugal, Saudi Arabia, and Australia. In addition, the company offers technical and consultancy services; and sells machineries related to sewage treatment in the People's Republic of China and Australia. Further, it is involved in the licensing of technical know-how related to sewage treatment; and provision of urban services and hazardous waste treatment services in the People's Republic of China and Hong Kong; and sale of recycling and reuse products. Additionally, the company offers urban environmental governance services and construction services, and waste electrical and electronic equipment treatment services. Beijing Enterprises Water Group Limited was incorporated in 1992 and is headquartered in Wan Chai, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Beijing Enterprises Water Group reported revenue of HK$23.9B in FY2025 versus HK$27.9B in FY2021, a compound −3.8%/yr. Reported net income was HK$1.8B in FY2025, compounding −19.7%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$23.9B
Latest YoY
−7.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.2%
Avg. growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+33.4%
Revenue −3.8%/yr
FY21 HK$27.9B
FY22 HK$21.5B
FY23 HK$24.5B
FY24 HK$25.8B
FY25 HK$23.9B
Net income −19.7%/yr
FY21 HK$4.4B
FY22 HK$1.3B
FY23 HK$2.0B
FY24 HK$1.9B
FY25 HK$1.8B
Character of growth · EPS growth decomposed (2014-2025) −4.3 % p.a.
Revenue per share +5.8 pp

of which total revenue +7.2 pp · buybacks/dilution −1.4 pp

EBIT margin −3.2 pp
Tax rate −1.1 pp
Residual (interest, one-offs) −5.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Beijing Enterprises Water Group Fair Value". https://www.fairvalue-calculator.com/stock/0371

Peer Group

Utilities - Regulated Water · 67 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Top 25%
Fair Value upside +59% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 8% · Below median
Operating margin (TTM) 19% · Below median
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 6.5% · Top 25%
Debt / equity 1.86× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 13.3× · Cheaper than median
P/B 0.74× · Cheaper than 75% of peers
P/S (TTM) 1.03× · Cheaper than 75% of peers
P/FCF 0.6× · Cheaper than 75% of peers
EV/EBITDA 11.0× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 1
FUTURE 0 · sector 28
PAST 19 · sector 29
HEALTH 7 · sector 66
DIVIDEND 100 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBSP3 SBSP3 R$29.22 R$31.23 +7%
SBS SBS $5.79 $5.21 -10%
Essential Utilities, Inc WTRG $38.59 $21.81 -43%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.12 ¥2.77 -33%

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Frequently asked questions

Is Beijing Enterprises Water Group (0371) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$3.60 versus a price of HK$2.27, about +59% (undervalued).
What is the fair value of 0371?
Our model-based fair value for Beijing Enterprises Water Group is HK$3.60 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$2.27.
What is the quality score of 0371?
Beijing Enterprises Water Group has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Beijing Enterprises Water Group (0371)?
Beijing Enterprises Water Group reported trailing-twelve-month revenue of about HK$22.1B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0371?
The net profit margin of Beijing Enterprises Water Group is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Beijing Enterprises Water Group pay a dividend?
Beijing Enterprises Water Group currently shows a dividend yield of about 6.51% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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