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New Sparkle Roll International Group Limited (HK:0970)
:0970
Hong Kong Market

New Sparkle Roll International Group Limited (0970) AI Stock Analysis

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HK

New Sparkle Roll International Group Limited

(0970)

Rating:46Neutral
Price Target:
The company's overall stock score reflects significant financial challenges, particularly declining revenues and negative profitability. While cash flow is positive, high leverage remains a concern. Technical indicators show a lack of momentum, and valuation metrics do not offer much appeal due to negative earnings. These factors combine to result in a relatively low stock score.

New Sparkle Roll International Group Limited (0970) vs. iShares MSCI Hong Kong ETF (EWH)

New Sparkle Roll International Group Limited Business Overview & Revenue Model

Company DescriptionNew Sparkle Roll International Group Limited (0970) is a diversified investment holding company based in Hong Kong. The company primarily engages in the distribution and dealership of luxury goods, including automobiles, watches, and accessories. It also has business interests in the entertainment sector, focusing on film production and distribution, as well as other related services. Through its wide array of luxury and entertainment offerings, New Sparkle Roll aims to cater to high-net-worth individuals and capitalize on the growing demand for premium products and entertainment in Asia.
How the Company Makes MoneyNew Sparkle Roll International Group Limited generates revenue through multiple streams primarily associated with its luxury goods and entertainment divisions. The company's core revenue is derived from its role as a distributor and dealer of high-end automobiles and luxury watches, where it earns profits by acquiring these products at wholesale prices and selling them at a markup. Additionally, the company benefits from its entertainment segment, which includes income from film production, distribution rights, and related services. Strategic partnerships with luxury brands and entertainment companies further enhance its product offerings and market reach, contributing to its earnings. The company leverages its extensive network and market expertise to maximize profitability in these sectors.

New Sparkle Roll International Group Limited Financial Statement Overview

Summary
New Sparkle Roll International Group Limited faces significant financial challenges, with declining revenues and negative profitability margins. The balance sheet reflects a stable equity position, although high leverage poses a risk. Positive cash flow generation provides a cushion, but operational improvements are necessary for sustainable growth.
Income Statement
35
Negative
The company has experienced a declining revenue trend over the past few years, with a significant drop in total revenue by 18.33% from 2023 to 2024. Gross Profit Margin decreased to 9.38% in 2024 from 14.46% in 2023, and Net Profit Margin turned negative, indicating operational challenges. Negative EBIT and EBITDA margins in 2024 highlight profitability issues.
Balance Sheet
55
Neutral
The company maintains a stable equity base with an Equity Ratio of 55.67% in 2024. However, the Debt-to-Equity ratio is high at 0.64, indicating significant leverage. Return on Equity is negative due to losses, reflecting poor utilization of shareholder equity.
Cash Flow
58
Neutral
The company has a positive Free Cash Flow of 198.46 million in 2024, a growth from 165.26 million in 2023, suggesting improved cash generation. The Operating Cash Flow to Net Income ratio is positive, indicating effective cash management despite net losses. However, the Free Cash Flow to Net Income ratio is negative due to the negative net income.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue2.58B3.26B4.00B4.32B4.53B3.44B
Gross Profit204.73M306.35M578.13M856.43M691.75M445.24M
EBITDA-521.04M-473.71M150.54M315.36M256.94M218.44M
Net Income-1.12B-613.42M-53.13M34.05M37.53M30.28M
Balance Sheet
Total Assets2.33B2.85B3.99B4.73B4.09B3.60B
Cash, Cash Equivalents and Short-Term Investments298.06M169.97M271.73M299.37M512.06M237.25M
Total Debt1.01B1.02B1.35B1.47B848.59M1.14B
Total Liabilities1.25B1.26B1.76B2.00B1.43B1.59B
Stockholders Equity1.08B1.59B2.20B2.56B2.65B2.00B
Cash Flow
Free Cash Flow104.39M198.46M165.25M-391.18M623.47M4.79M
Operating Cash Flow114.38M223.30M209.21M-379.80M654.65M234.37M
Investing Cash Flow66.47M61.33M-134.03M-364.48M-132.97M-77.01M
Financing Cash Flow-184.76M-334.44M-73.06M520.09M-332.16M-223.84M

New Sparkle Roll International Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.54
Price Trends
50DMA
0.50
Negative
100DMA
0.50
Negative
200DMA
0.52
Negative
Market Momentum
MACD
<0.01
Positive
RSI
39.57
Neutral
STOCH
14.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0970, the sentiment is Negative. The current price of 0.54 is below the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.50, and above the 200-day MA of 0.52, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0970.

New Sparkle Roll International Group 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
78
Outperform
HK$390.29B5.6817.85%4.45%4.62%81.63%
78
Outperform
HK$2.57B5.3749.10%3.69%3.11%-2.34%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
55
Neutral
$7.05B21.96-0.91%0.92%-8.10%-108.48%
54
Neutral
$9.72B68.85-3.15%4.67%0.17%-260.67%
46
Neutral
HK$303.91M-56.24%-28.57%-749.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0970
New Sparkle Roll International Group Limited
0.46
-0.34
-42.50%
HK:0331
FSE Lifestyle Services Limited
5.74
0.56
10.81%
HK:0336
Huabao International Holdings
2.98
0.61
25.47%
HK:1112
Health and Happiness (H&H) International Holdings
10.66
2.33
27.94%
HK:1339
People's Insurance Co (Group) of China
5.64
3.16
127.60%

New Sparkle Roll International Group Limited Corporate Events

New Sparkle Roll Expands with Bang & Olufsen Share Acquisition
Apr 23, 2025

New Sparkle Roll International Group Limited, a company incorporated in Bermuda, has announced a supplemental disclosure regarding its acquisition of shares in Bang & Olufsen A/S. The announcement provides additional financial information about Bang & Olufsen, highlighting a decrease in revenue and a continued loss for the year ending May 2024. The acquisition is part of New Sparkle Roll’s strategic moves, potentially impacting its market positioning and offering insights into its investment focus.

New Sparkle Roll International Group Limited Announces New Share Subscription
Apr 15, 2025

New Sparkle Roll International Group Limited has entered into two Subscription Agreements to issue 93,800,301 new shares at a price of HK$0.402 per share. This issuance represents approximately 20% of the existing shares and is expected to raise gross proceeds of HK$37.7 million, which will be used for purposes outlined in the announcement. The shares will be issued under a General Mandate and will rank equally with existing shares. The completion of these agreements is subject to certain conditions, and the company advises caution to shareholders and potential investors.

New Sparkle Roll Expands Stake in Bang & Olufsen
Apr 13, 2025

New Sparkle Roll International Group Limited announced the acquisition of 250,000 shares in Bang & Olufsen A/S, a global luxury-lifestyle brand known for its audio and video products. This acquisition, conducted on the Nasdaq Copenhagen, increases the Group’s stake in B&O to approximately 9.30% of the total issued shares. The transaction is considered a discloseable transaction under the Listing Rules, requiring reporting and announcement but not shareholder approval. The acquisition reflects New Sparkle Roll’s strategic investment approach, enhancing its position in the luxury lifestyle market.

New Sparkle Roll International Group Faces Legal Indemnity Ruling
Mar 24, 2025

New Sparkle Roll International Group Limited has announced a significant legal development involving its former directors. The Hong Kong High Court has ordered three former directors to indemnify the company for costs and damages related to proceedings in Bermuda, including the appointment of joint provisional liquidators. This decision may impact the company’s financial standing and its ongoing legal strategy.

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: Apr 26, 2025