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

• Market Cap: HK$382.71M
• Dividend Yield: N/A
• Average Volume (3M): 611.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -36.67%
• EPS Growth: -6.20%
• Country: HK
• Employees: 387
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Dealerships
• EPS (TTM): -0.33
• Shares Outstanding: 562,801,800
• 10 Day Avg. Volume: 377,000
• 30 Day Avg. Volume: 611,016
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: -27.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$0.50 ▼(-27.54% Downside)

The overall stock score is primarily influenced by the company's strong technical indicators, suggesting a positive market trend. However, significant financial challenges, including declining revenue and profitability, weigh heavily on the score. The negative valuation metrics further contribute to a lower overall score.

New Sparkle Roll International Group Limited Business Overview & Revenue Model

Company Description

New Sparkle Roll International Group Limited, an investment holding company, engages in the dealerships of luxury goods and automobiles in Hong Kong and Mainland China. It distributes cars of various brands, including Bentley, Lamborghini, and Rolls-Royce; watches under the PARMIGIANI, deLaCour, and Buben & Zorweg brands; and jewelries. The company also distributes fine red wines under the DUCLOT EXPORT, Domaine d'Eugénie, Maison Joanne Bordeaux, Ulysse Cazabonne, Compagnie Medocaine Des Grands Crus, and Chateau D'Yquem brands; audio equipment under the Bang & Olufsen PLAY brand; men's apparel and accessories under the Corneliani brand; and cigars and smoker's accessories. In addition, it trades in automobile related parts and accessories; money lending; silver and home articles; sells and distributes audio and visual consumer electronic products, as well as airline; and offers automobile related after-sale services. Further, the company provides management; exhibition and consultancy; insurance agency; publishes magazines; property rental, holding, and management; tenancy and sub-tenancy; advertising and marketing; and sells merchandised goods. Additionally, it develops and invests in films and television programs. The company was formerly known as Sparkle Roll Group Limited and changed its name to New Sparkle Roll International Group Limited in September 2021. New Sparkle Roll International Group Limited was incorporated in 1996 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

New Sparkle Roll International Group Limited generates revenue through multiple streams, primarily from the sale of luxury goods, including watches and jewelry, which are sourced from well-known international brands. The company earns significant income from its retail operations in high-end shopping districts, capturing affluent customers. Additionally, revenue is generated through its automotive division, which involves the sale of luxury vehicles and associated services. The company also benefits from strategic partnerships with luxury brands, enhancing its product offerings and market reach. Seasonal promotions and exclusive events further drive sales, contributing to its overall earnings.

New Sparkle Roll International Group Limited Financial Statement Overview

Summary

New Sparkle Roll International Group Limited faces significant financial challenges, particularly in terms of declining revenue and profitability. The balance sheet shows increased leverage, which could pose risks if not managed carefully. However, the company demonstrates strong cash flow management, which is a positive aspect amidst the current financial difficulties.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a negative revenue growth rate of -19.78%. Gross profit margin has decreased to 6.82%, and net profit margin is deeply negative at -34.74%, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio has increased to 0.81, indicating higher leverage, which poses a risk. The equity ratio is relatively stable, but the company has been unable to generate positive returns on equity, with ROE being negative. The balance sheet shows a need for improved financial stability.

Cash Flow

Despite negative net income, the company has managed to generate positive operating cash flow. Free cash flow has grown significantly by 122.43%, and the free cash flow to net income ratio is strong at 0.96, indicating efficient cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.07B	3.26B	4.00B	4.32B	4.53B
Gross Profit	204.73M	140.96M	306.35M	578.13M	856.43M	691.75M
EBITDA	-521.04M	-614.38M	-473.71M	150.54M	315.36M	256.94M
Net Income	-1.12B	-718.18M	-613.42M	-53.13M	34.05M	37.53M
Balance Sheet
Total Assets	2.33B	1.91B	2.85B	3.99B	4.73B	4.09B
Cash, Cash Equivalents and Short-Term Investments	151.63M	107.75M	169.97M	271.73M	299.37M	512.06M
Total Debt	1.01B	780.29M	1.02B	1.35B	1.47B	848.59M
Total Liabilities	1.25B	937.56M	1.26B	1.76B	2.00B	1.43B
Stockholders Equity	1.08B	966.02M	1.59B	2.20B	2.56B	2.65B
Cash Flow
Free Cash Flow	104.39M	232.18M	198.46M	165.25M	-391.18M	623.47M
Operating Cash Flow	114.38M	241.93M	223.30M	209.21M	-379.80M	654.65M
Investing Cash Flow	67.65M	14.34M	61.33M	-134.03M	-364.48M	-132.97M
Financing Cash Flow	-162.33M	-242.26M	-334.44M	-73.06M	520.09M	-332.16M

New Sparkle Roll International Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0970, the sentiment is Neutral. The current price of 0.69 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.60, and above the 200-day MA of 0.54, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0970.

New Sparkle Roll International Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
0970	53 Neutral	HK$382.71M	―	-56.24%	―	-36.67%	-6.20%
HA5	―	€239.30M	―	-4.42%	―	―	―
6909	53 Neutral	HK$354.82M	7.19	-1.92%	9.17%	-14.32%	-192.28%
1771	52 Neutral	HK$174.00M	―	-8.81%	―	-24.42%	-115.68%
1959	47 Neutral	HK$129.59M	―	-48.30%	―	-41.19%	30.99%
8126	―	HK$18.10M	―	-1.39%	―	―	―

New Sparkle Roll International Group Limited Corporate Events

New Sparkle Roll Expands with Bang & Olufsen Share Acquisition

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

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

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

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.