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

• Market Cap: HK$278.59M
• Dividend Yield: N/A
• Average Volume (3M): 4.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -14.26%
• EPS Growth: 84.90%
• Country: HK
• Employees: 387
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.09
• Shares Outstanding: 562,801,800
• 10 Day Avg. Volume: 3,088,100
• 30 Day Avg. Volume: 4,432,098
• PEG Ratio: 0.02
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 1.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.49 ▼(-3.00% Downside)

The overall stock score is primarily impacted by the company's financial performance, which shows significant challenges in revenue and profitability. Technical analysis suggests a neutral trend, but valuation metrics are poor due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Operating Cash Flow Strength

Consistent positive operating cash flow and a 122% jump in free cash flow provide durable liquidity and internal funding. This cash generation helps service obligations, support inventory and e-commerce investments, and extend runway while profitability is being restored.

Diversified Sales Channels & Partnerships

A multi-channel model (wholesale, retail, e-commerce) plus brand partnerships strengthens distribution flexibility and product access. Structurally this reduces concentration risk, enables margin management across channels, and supports resilience as consumer purchase behavior shifts online.

Exposure to Chinese Luxury Demand

Long-term secular growth in Chinese affluent consumer demand underpins structural demand for luxury watches. This geographic exposure offers a durable tailwind for revenue recovery and pricing power if the company stabilizes operations and redeploys cash into growth initiatives.

Negative Factors

Declining Revenue and Compressed Margins

Material revenue contraction and sharply compressed gross and net margins point to structural demand or pricing issues and/or rising costs. Persistently low gross margin limits ability to cover fixed costs, making durable profitability recovery more challenging without business-model changes.

Rising Leverage and Negative ROE

Higher leverage combined with negative ROE signals capital strain and shareholder value erosion. This structural balance sheet weakness raises refinancing risk and constrains investment capacity, which impairs long-term ability to scale operations or absorb market shocks.

Negative Operating Profitability

Sustained negative EBIT/EBITDA margins indicate deep operational inefficiencies or a cost structure misaligned with revenue levels. Without structural margin improvements, cash flow gains may be temporary and the business will struggle to generate sustainable returns.

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 avenues, primarily focusing on the sale of luxury watches and accessories. The company earns money through wholesale distribution to retailers and direct retail sales through its own branded stores and online platforms. Additionally, it engages in strategic partnerships with renowned luxury watch brands, which enhances its product offerings and market reach. Revenue is further bolstered by e-commerce sales, tapping into the increasing trend of online shopping among luxury consumers. Seasonal promotions, exclusive collections, and high-margin products also contribute significantly to its 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	2.07B	2.07B	3.26B	4.00B	4.32B	4.53B
Gross Profit	140.96M	140.96M	306.35M	578.13M	856.43M	691.75M
EBITDA	-120.60M	-614.38M	-473.71M	150.54M	315.36M	256.94M
Net Income	-718.18M	-718.18M	-613.42M	-53.13M	34.05M	37.53M
Balance Sheet
Total Assets	1.91B	1.91B	2.85B	3.99B	4.73B	4.09B
Cash, Cash Equivalents and Short-Term Investments	107.75M	107.75M	169.97M	271.73M	299.37M	512.06M
Total Debt	780.29M	780.29M	1.02B	1.35B	1.47B	848.59M
Total Liabilities	937.56M	937.56M	1.26B	1.76B	2.00B	1.43B
Stockholders Equity	966.02M	966.02M	1.59B	2.20B	2.56B	2.65B
Cash Flow
Free Cash Flow	232.18M	232.18M	198.46M	165.25M	-391.18M	623.47M
Operating Cash Flow	241.93M	241.93M	223.30M	209.21M	-379.80M	654.65M
Investing Cash Flow	-1.39M	14.34M	61.33M	-134.03M	-364.48M	-132.97M
Financing Cash Flow	-196.94M	-242.26M	-334.44M	-73.06M	520.09M	-332.16M

New Sparkle Roll International Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.58, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 56.52 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6909	52 Neutral	HK$249.00M	-4.97	-1.92%	12.36%	-14.32%	-192.28%
0970	46 Neutral	HK$278.59M	-1.18	-19.65%	―	-14.26%	84.90%
1959	46 Neutral	HK$1.78B	-28.77	-48.30%	―	-41.19%	30.99%
3836	45 Neutral	HK$1.51B	-6.66	-4.42%	3.49%	11.33%	56.94%
1771	45 Neutral	HK$148.80M	-0.68	-8.81%	―	-24.42%	-115.68%

New Sparkle Roll International Group Limited Corporate Events

New Sparkle Roll International Settles Loan Dispute

New Sparkle Roll International Group Limited has announced a settlement regarding a loan dispute involving HK Huibo International Trading Limited and a guarantor. The company has agreed to a settlement of HK$4.3 million, which facilitates immediate recovery and circumvents the costs and uncertainties associated with further litigation or insolvency proceedings.

The most recent analyst rating on (HK:0970) stock is a Hold with a HK$0.59 price target. To see the full list of analyst forecasts on New Sparkle Roll International Group Limited stock, see the HK:0970 Stock Forecast page.

New Sparkle Roll Reports Interim Financial Results with Revenue Growth Amid Losses

New Sparkle Roll International Group Limited reported its unaudited consolidated interim results for the six months ended 30 September 2025, revealing a revenue increase to HK$1,188,138,000 from HK$1,046,126,000 in the same period of 2024. Despite the revenue growth, the company faced a total comprehensive loss of HK$26,850,000, an improvement from the previous year’s loss of HK$552,549,000, indicating challenges in managing costs and impairments, but also showing some recovery in financial health.

The most recent analyst rating on (HK:0970) stock is a Hold with a HK$0.59 price target. To see the full list of analyst forecasts on New Sparkle Roll International Group Limited stock, see the HK:0970 Stock Forecast page.

New Sparkle Roll International Schedules Board Meeting for Interim Results

New Sparkle Roll International Group Limited has announced an upcoming board meeting scheduled for November 27, 2025. The meeting will focus on reviewing and approving the interim results for the six-month period ending September 30, 2025, and discussing the potential recommendation of an interim dividend.

The most recent analyst rating on (HK:0970) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on New Sparkle Roll International Group Limited stock, see the HK:0970 Stock Forecast page.