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Beijing Enterprises Water Group Ltd (0371) Fair Value & Analysis

Utilities · HK · Market cap HK$22.7B (≈ $2.9B) · ISIN BMG0957L1090

What is Beijing Enterprises Water Group Ltd really worth?

BE Beijing Enterprises Water Group Ltd 0371 · HK
PriceHK$1.74
Fair ValueHK$3.00
Upside+72.9%
Quality55/100

A solid business, trading 42% below our fair value of HK$3.00.

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Risks

!Weak Growth (revenue 5y −1.2 %/yr)
!Thin margins · 7.6% net margin
!High debt · generates free cash flow
!Mixed vs. peers (8/14)
!Narrow moat 41/100
!Evidence only low, so the estimate is less certain
!Weak on past: 19 out of 100
!Weak on balance sheet: 7 out of 100

For context

·9.48% dividend yield
Evidence: Low Range HK$2.71 – HK$4.52

Fair value as of: Aug 28, 2026

From 26 valuation models · updated 8 days ago

Fair value updated Aug 28, 2026, revised from HK$2.99 to HK$3.00 (+0.3%) since Aug 13, 2026. Share price −23.7% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (HK$2.71). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

HK$2.86 HK$1.24 Fair Value HK$3.00 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range HK$1.24 – HK$2.86 · fair‑value band HK$2.71 – HK$4.52 · the HK$1.74 price screens below the HK$3.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Beijing Enterprises Water Group Ltd (0371) currently trades at HK$1.74, while our model-based Fair Value estimate is HK$3.00, implying the stock looks roughly 42.2% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of HK$7.98 per share, and 23 of the 26 models we run sit above the HK$1.74 price. Bear case: the Economic Profit group reads lowest at HK$1.10, and 3 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Beijing Enterprises Water Group Ltd 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 28, 2026

Our scenario range runs from HK$2.71 (bear case) to HK$4.52 (bull case); at HK$1.74, 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 40% below its 52-week high, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at −33% fair-value upside, at 73%, 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, family-balanced 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. Every input is real reported data, nothing guessed.

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
Residual Income best evidence HK$2.44 HK$2.54 HK$2.59 74
Owner Earnings — HK$3.97 HK$14.08 71
Growth DCF HK$3.48 HK$11.45 HK$24.51 69
All 26 models by family
DCF Models
FCF DCF HK$3.99 HK$8.92 HK$24.64 67
Owner Earnings — HK$3.97 HK$14.08 71
5Y Revenue Exit HK$1.12 HK$4.99 HK$13.07 60
5Y EBITDA Exit HK$2.10 HK$6.98 HK$16.52 65
5Y P/E Exit — HK$3.38 HK$8.30 65
10Y Revenue Exit HK$1.87 HK$8.88 HK$13.10 62
10Y EBITDA Exit HK$2.77 HK$10.99 HK$25.04 59
10Y P/E Exit HK$0.9500 HK$5.61 HK$12.70 55
Earnings-Based
Graham-Dodd HK$1.24 HK$8.65 HK$12.14 61
Lynch FV HK$4.47 HK$6.38 HK$8.30 59
PEG = 1.0 HK$4.47 HK$6.38 HK$8.30 55
EPV HK$0.2800 HK$1.10 HK$1.81 67
Dividend Discount
Gordon GGM HK$1.53 HK$3.19 HK$5.06 64
DDM Multi-Stage HK$1.53 HK$2.69 HK$3.35 64
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 62
EV/EBITDA HK$1.16 HK$3.08 HK$5.01 62
EV/Revenue — HK$1.35 HK$3.14 50
Asset-Based
NCAV (Graham) HK$1.54 HK$2.06 HK$3.07 54
Growth DCF
Growth DCF HK$3.48 HK$11.45 HK$24.51 69
Rev-Margin DCF HK$1.70 HK$6.38 HK$16.21 61
Economic Profit
Residual Income best evidence HK$2.44 HK$2.54 HK$2.59 74
ROIC Compounder HK$0.2800 HK$1.10 HK$1.81 65
Growth Earnings
Growth-Adj P/E HK$5.58 HK$7.98 HK$10.37 65

Widest divergence: Growth Earnings (HK$7.98) versus Economic Profit (HK$1.10). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 13.3 as of Jul 1, 2026
P/S ratio 1.02 P/E × margin
EPS (TTM) HK$0.0800 price ÷ EPS = P/E 13.3
Dividend yield 9.5%
Net margin 7.6% FY2025
Return on equity 4.8% TTM
More key figures
Profitability
Return on assets (EBIT) 3.5% avg 5y
Operating margin 18.6% TTM
Growth
Revenue (TTM) HK$22.1B TTM
Revenue growth (YoY) −10.5% 3y avg +3.7%
EPS growth (YoY) +23.7%
Balance sheet & cash flow
Free cash flow HK$5.1B FY2025
Net debt HK$82.3B FY2025 · ≈ 16.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 52 · Market factors (momentum, volatility) 30

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 81
Calm price path (market factor)
Momentum 13
Price trend over the last 3–12 months (market factor)
52W Momentum 1
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 Ltd reported revenue of 23.9B CNY in FY2025 versus 27.9B CNY in FY2021, a compound −3.8%/yr. Reported net income was 1.8B CNY 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. revenue 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. revenue 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. revenue 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%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−6.7% (−16.2 + 9.5)
Revenue −3.8%/yr
FY21 27.9B CNY
FY22 21.5B CNY
FY23 24.5B CNY
FY24 25.8B CNY
FY25 23.9B CNY
Net income −19.7%/yr
FY21 4.4B CNY
FY22 1.3B CNY
FY23 2.0B CNY
FY24 1.9B CNY
FY25 1.8B CNY
Character of growth · EPS growth decomposed (2014-2025) −4.3 % p.a.
Revenue per share +5.8 %

of which total revenue +7.2 % · buybacks/dilution −1.3 %

EBIT margin −3.2 %
Tax rate −1.1 %
Residual (interest, one-offs) −5.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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

Peer Group

Utilities - Regulated Water · 64 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 +73% · 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) 9.5% · 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 median
P/FCF 0.6× · Cheaper than 75% of peers
EV/EBITDA 11.0× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE0 · sector 28
PAST19 · sector 31
HEALTH7 · sector 65
DIVIDEND100 · sector 52

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

Similar stocks

10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $138.30 $65.80 −52%
SBS SBS $4.82 $8.13 +69%
Essential Utilities, Inc WTRG $41.10 $21.81 −47%
Guangdong Investment Limited 0270 HK$8.15 HK$12.82 +57%
Grandblue Environment Co 600323 ¥29.61 ¥33.29 +12%
American States Water Company AWR $89.88 $47.94 −47%
Chengdu Xingrong Environment Co 000598 ¥7.35 ¥9.09 +24%
California Water Service Group CWT $50.48 $33.56 −34%
Chongqing Water Group 601158 ¥4.14 ¥2.77 −33%
H2O America, through its subsidiaries, HTO $62.57 $25.29 −60%

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Frequently asked questions

Is Beijing Enterprises Water Group Ltd (0371) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of HK$3.00 versus a price of HK$1.74, about +73% upside (undervalued).
What is the fair value of 0371?
Our model-based fair value for Beijing Enterprises Water Group Ltd is HK$3.00 (as of Aug 28, 2026), built from audited fundamentals. The current price: HK$1.74.
What is the quality score of 0371?
Beijing Enterprises Water Group Ltd 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 Ltd (0371)?
Beijing Enterprises Water Group Ltd reported trailing-twelve-month revenue of about HK$22.1B (latest available figure, as of Aug 28, 2026).
What is the net profit margin of 0371?
The net profit margin of Beijing Enterprises Water Group Ltd 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 Ltd pay a dividend?
Beijing Enterprises Water Group Ltd currently shows a dividend yield of about 9.48% relative to its recent price (as of Aug 28, 2026).
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