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

• Market Cap: HK$326.43M
• Dividend Yield: N/A
• Average Volume (3M): 731.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -28.57%
• EPS Growth: -749.55%
• Country: HK
• Employees: 387
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Auto - Dealerships
• EPS (TTM): -0.33
• Shares Outstanding: 562,801,800
• 10 Day Avg. Volume: 560,300
• 30 Day Avg. Volume: 731,633
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.59
• 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

• Rating: 46 Neutral
• 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 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 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

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

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

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.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	3.26B	4.00B	4.32B	4.53B	3.44B
Gross Profit	306.35M	578.13M	856.43M	691.75M	445.24M
EBITDA	-473.71M	150.54M	315.36M	256.94M	218.44M
Net Income	-613.42M	-53.13M	34.05M	37.53M	30.28M
Balance Sheet
Total Assets	2.85B	3.99B	4.73B	4.09B	3.60B
Cash, Cash Equivalents and Short-Term Investments	169.97M	271.73M	299.37M	512.06M	237.25M
Total Debt	1.02B	1.35B	1.47B	848.59M	1.14B
Total Liabilities	1.26B	1.76B	2.00B	1.43B	1.59B
Stockholders Equity	1.59B	2.20B	2.56B	2.65B	2.00B
Cash Flow
Free Cash Flow	198.46M	165.25M	-391.18M	623.47M	4.79M
Operating Cash Flow	223.30M	209.21M	-379.80M	654.65M	234.37M
Investing Cash Flow	61.33M	-134.03M	-364.48M	-132.97M	-77.01M
Financing Cash Flow	-334.44M	-73.06M	520.09M	-332.16M	-223.84M

New Sparkle Roll International Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.53, and above the 200-day MA of 0.53, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 45.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6909	58 Neutral	HK$373.50M	7.19	-0.91%	9.17%	-20.06%	-141.38%
Sector *	57 Neutral	HK$24.69B	3.68	-2.13%	5.97%	-0.25%	-65.84%
1771	46 Neutral	HK$143.40M	―	-9.04%	―	-23.03%	-1842.08%
0970	46 Neutral	HK$326.43M	―	-56.24%	―	-28.57%	-749.55%
HA5	―	€197.79M	―	-5.36%	4.68%	―	―
1959	38 Underperform	HK$106.72M	―	-61.86%	―	-24.60%	-67.92%
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.