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Birmingham Sports Holdings Limited (HK:2309)
:2309
Hong Kong Market
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Birmingham Sports Holdings Limited (2309) AI Stock Analysis

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HK:2309

Birmingham Sports Holdings Limited

(2309)

Rating:41Neutral
Price Target:
HK$2.00
▲(15.61% Upside)
Birmingham Sports Holdings Limited faces significant financial challenges, including negative margins, high debt, and liquidity issues, leading to a low financial performance score. The technical analysis indicates bearish trends, and the negative P/E ratio further highlights the lack of profitability. These factors collectively result in a low overall stock score.

Birmingham Sports Holdings Limited (2309) vs. iShares MSCI Hong Kong ETF (EWH)

Birmingham Sports Holdings Limited Business Overview & Revenue Model

Company DescriptionBirmingham Sports Holdings Limited (2309) is a diversified investment holding company primarily engaged in the sports and entertainment industry. The company owns and manages professional sports teams, with a particular focus on football. Its principal asset is the ownership of Birmingham City Football Club, a professional football club based in Birmingham, England. Beyond sports, the company also explores opportunities in real estate development and investment, which complement its core activities.
How the Company Makes MoneyBirmingham Sports Holdings Limited generates revenue through a combination of its sports operations and real estate investments. The primary source of income comes from its ownership of Birmingham City Football Club, which includes revenue from matchday ticket sales, broadcasting rights, sponsorship deals, and commercial partnerships. Additionally, the company benefits from merchandise sales and hospitality services related to the football club. Beyond football, Birmingham Sports Holdings Limited seeks to capitalize on real estate opportunities, leveraging its sports assets to enhance property value and generate rental or sales income. This diversified approach allows the company to balance the cyclical nature of sports revenue with more stable returns from property investments.

Birmingham Sports Holdings Limited Financial Statement Overview

Summary
The company is experiencing significant financial difficulties, as evidenced by negative gross profit margins, net losses, high debt levels, and negative cash flows. This precarious financial position is compounded by operational inefficiencies and liquidity challenges.
Income Statement
25
Negative
The company has been struggling with negative gross profit margins and net losses over several years. Despite a revenue increase in 2024, both EBIT and EBITDA margins are negative, indicating operational inefficiencies and challenges in cost management. The net profit margin remains negative, highlighting the lack of profitability.
Balance Sheet
35
Negative
The balance sheet shows a high debt-to-equity ratio, reflecting significant leverage. Although stockholder equity increased in 2024, the return on equity remains negative due to net losses. The equity ratio is moderate, but the high level of debt poses financial risks.
Cash Flow
20
Very Negative
The cash flow statement reveals negative free cash flow and a deteriorating operating cash flow trend, indicating liquidity challenges. The free cash flow to net income ratio is unfavorable, and the company relies heavily on financing activities to cover cash deficits, which is unsustainable long-term.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue275.24M217.10M220.94M165.02M231.53M
Gross Profit-295.31M-233.95M-309.94M-338.97M-302.67M
EBITDA-195.22M-15.36M-785.00K16.31M-133.58M
Net Income-182.78M-25.66M-40.66M-74.23M-260.48M
Balance Sheet
Total Assets1.26B959.57M1.02B1.08B1.06B
Cash, Cash Equivalents and Short-Term Investments145.31M14.75M35.71M44.76M38.80M
Total Debt627.79M340.78M432.92M397.97M545.29M
Total Liabilities1.05B758.13M794.99M771.95M748.43M
Stockholders Equity458.27M520.05M488.01M535.30M326.75M
Cash Flow
Free Cash Flow-558.36M-285.48M-276.81M-416.79M-358.70M
Operating Cash Flow-332.11M-242.05M-240.85M-355.22M-267.74M
Investing Cash Flow-138.17M22.46M93.96M315.88M-47.02M
Financing Cash Flow597.81M199.14M124.18M39.81M273.61M

Birmingham Sports Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.73
Price Trends
50DMA
2.11
Negative
100DMA
2.35
Negative
200DMA
2.35
Negative
Market Momentum
MACD
-0.11
Negative
RSI
40.10
Neutral
STOCH
42.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2309, the sentiment is Negative. The current price of 1.73 is below the 20-day moving average (MA) of 1.90, below the 50-day MA of 2.11, and below the 200-day MA of 2.35, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 42.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2309.

Birmingham Sports Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$38.54B94.032.29%31.62%3.08%
56
Neutral
HK$68.37B0.28-4.91%5.02%-0.86%-12.88%
51
Neutral
HK$418.78M-1.32%-21.40%-100.00%
49
Neutral
HK$241.67M-14.60%142.14%62.57%
46
Neutral
HK$209.98M-12.77%-8.19%-498.76%
43
Neutral
$3.39B-51.09%-15.03%43.73%
41
Neutral
HK$1.66B-61.76%20.23%-643.79%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2309
Birmingham Sports Holdings Limited
1.81
-0.78
-30.12%
HK:1661
Wisdom Sports Group
1.20
-0.22
-15.49%
HK:1060
Alibaba Pictures Group Limited
1.30
0.94
261.11%
HK:0953
Shaw Brothers Holdings Limited
0.32
0.21
190.91%
HK:0547
Digital Domain Holdings
0.42
>-0.01
-1.19%
HK:1132
Orange Sky Golden Harvest Entertainment (Holdings) Limited
0.08
0.03
60.00%

Birmingham Sports Holdings Limited Corporate Events

Birmingham Sports Holdings Expands Operating Loan Facility
Jul 23, 2025

Birmingham Sports Holdings Limited has announced a significant amendment to its Operating Loan Agreement, increasing the loan facility from GBP100 million to GBP150 million. This amendment, involving BCL, BCFC, and SCL, is classified as a connected transaction under Hong Kong’s Listing Rules, reflecting the company’s strategic financial adjustments to enhance its operational capacity.

Birmingham Sports Holdings Updates Audit Committee Guidelines
Jun 26, 2025

Birmingham Sports Holdings Limited has revised the terms of reference for the Audit Committee of its board of directors. The updated guidelines, effective from June 26, 2025, outline the committee’s composition, meeting protocols, and responsibilities, emphasizing the importance of independent oversight and financial expertise. This revision aims to enhance governance and ensure compliance with the Hong Kong Stock Exchange’s listing rules, potentially impacting the company’s transparency and accountability to its stakeholders.

Birmingham Sports Holdings Updates Nomination Committee Terms
Jun 26, 2025

Birmingham Sports Holdings Limited has revised the terms of reference for its Nomination Committee as of June 26, 2025. The committee is tasked with reviewing the board’s structure and diversity, identifying potential board members, and making recommendations for appointments and succession planning. This revision aims to enhance the board’s effectiveness and align with the company’s corporate strategy, potentially impacting the company’s governance and stakeholder engagement.

ZO Future Group Completes Second Tranche Share Subscription
Jun 10, 2025

ZO Future Group, a company incorporated in the Cayman Islands, announced the completion of a connected transaction involving the subscription and issuance of the second tranche of subscription shares under a specific mandate. On June 10, 2025, 37,634,408 shares were allotted and issued at a subscription price of HK$1.86 per share, representing approximately 4.08% of the company’s issued share capital post-completion. This transaction has adjusted the shareholding structure, increasing the Subscriber’s stake from 26.62% to 29.62%, while public shareholders’ stake decreased from 33.97% to 32.59%.

ZO Future Group Completes First Tranche Subscription Shares Issuance
Jun 5, 2025

ZO Future Group, a company listed on the Hong Kong Stock Exchange, has announced the completion of a connected transaction involving the subscription and issue of the first tranche of subscription shares. This transaction, which was finalized on June 5, 2025, resulted in the issuance of 32,258,065 shares at a subscription price of HK$1.86 per share, altering the company’s shareholding structure. The completion of this transaction increases the stake of the Subscriber, a wholly-owned subsidiary of Graticity Real Estate Development Co., Ltd., to 26.63%, while the overall public shareholding decreased to 33.97%. This strategic move is likely to impact the company’s market positioning and stakeholder interests.

ZO Future Group Passes Key Resolution at Extraordinary General Meeting
Jun 2, 2025

ZO Future Group announced that an ordinary resolution was passed at their Extraordinary General Meeting held on June 2, 2025. The resolution, which was approved by independent shareholders, involved the ratification of a Subscription Agreement and the issuance of new shares at a subscription price of HK$1.86 per share. This decision reflects the company’s strategic move to strengthen its financial position and potentially expand its market presence.

ZO Future Group Calls Extraordinary General Meeting for Share Subscription Approval
May 15, 2025

ZO Future Group has announced an extraordinary general meeting to be held electronically on June 2, 2025. The meeting will consider a resolution regarding a subscription agreement with Ever Depot Limited, which involves the issuance of up to 69,892,473 shares at a price of HK$1.86 per share. This agreement aims to expand the company’s share capital and requires approval from the Hong Kong Stock Exchange. The resolution, if passed, will grant the directors a specific mandate to execute the agreement, potentially impacting the company’s market position and shareholder value.

Birmingham Sports Holdings Prepares for June EGM with Register Closure
May 13, 2025

Birmingham Sports Holdings Limited has announced the closure of its register of members in preparation for an Extraordinary General Meeting (EGM) scheduled for June 2, 2025. The meeting will be held electronically, and shareholders must ensure their share transfers are registered by May 27, 2025, to participate. This procedural update is crucial for stakeholders as it outlines the necessary steps for participation in the company’s governance, potentially impacting shareholder engagement and decision-making processes.

ZO Future Group Completes Share Placing to Strengthen Financial Position
May 7, 2025

ZO Future Group has successfully completed the placing of 37,634,000 new shares, representing approximately 4.41% of its issued share capital, to independent third-party investors. The net proceeds of approximately HK$69.5 million will primarily be used to repay the company’s liabilities and improve its liquidity, with the remainder allocated for general working capital purposes. This strategic move is expected to reduce interest expenses and alleviate the financial burden on the company, which has been facing significant net losses.

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.Date of analysis: Jul 04, 2025