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

• Market Cap: HK$314.04M
• Dividend Yield: N/A
• Average Volume (3M): 4.43M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• 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: 675,362,200
• 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: 44 Neutral
• Price Target: HK$0.41 ▼(-18.60% Downside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is primarily weighed down by deteriorating fundamentals (revenue decline and large losses) and a bearish technical setup (below major moving averages with negative MACD). Positive operating and free cash flow provide some support, while valuation signals are limited due to a negative P/E and no dividend yield data.

Positive Factors

Positive operating and free cash flow

Despite accounting losses, the company’s positive operating cash flow and 122% FCF growth indicate durable cash generation. That cash cushion supports working capital, inventory buy-ins for luxury goods, selective capex and optional deleveraging, improving medium-term operational flexibility.

Diversified sales channels (wholesale, retail, e‑commerce)

A multi‑channel model (wholesale, branded stores and e‑commerce) provides structural resilience by broadening customer reach and smoothing seasonal volatility. It supports faster recovery if one channel weakens and positions the company to capture ongoing online luxury spending growth in China.

Strong Chinese market presence and brand partnerships

Established relationships with prestigious watch brands and a focused China footprint create long‑term competitive advantages: access to desirable inventory, brand exclusives and affluent customers, supporting pricing power and differentiated product mix over the medium term.

Negative Factors

Significant revenue decline

Near‑20% revenue contraction signals a loss of scale that materially weakens bargaining power with suppliers and reduces ability to cover fixed costs. If revenue decline persists, structural recovery will require market share gains or new demand sources to restore sustainable profitability.

Deep negative profitability and squeezed margins

Very low gross margins and deeply negative net margins point to structural cost or pricing issues in the luxury distribution model. Persistent negative EBIT/EBITDA erodes equity, limits reinvestment and makes long‑term recovery dependent on sustained margin improvement or major cost restructuring.

Rising leverage and weak return on equity

Higher leverage (D/E ~0.81) combined with negative ROE raises refinancing and liquidity risk, constraining strategic options. With ongoing losses, elevated debt amplifies downside in downturns and requires either earnings recovery or active deleveraging to restore balance‑sheet resilience.

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

Weak profitability and declining revenue drive the score down: revenue growth is -19.78%, gross margin is 6.82%, and net margin is deeply negative (-34.74%) with negative EBIT/EBITDA margins. Offsetting this somewhat, operating cash flow is positive and free cash flow grew 122.43%, indicating better cash management than earnings suggest.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.21B	2.07B	3.26B	4.00B	4.32B	4.53B
Gross Profit	118.53M	140.96M	306.35M	578.13M	856.43M	691.75M
EBITDA	-106.92M	-614.38M	-473.71M	150.54M	315.36M	256.94M
Net Income	-202.17M	-718.18M	-613.42M	-53.13M	34.05M	37.53M
Balance Sheet
Total Assets	1.76B	1.91B	2.85B	3.99B	4.73B	4.09B
Cash, Cash Equivalents and Short-Term Investments	118.94M	107.75M	169.97M	271.73M	299.37M	512.06M
Total Debt	551.25M	780.29M	1.02B	1.35B	1.47B	848.59M
Total Liabilities	780.51M	937.56M	1.26B	1.76B	2.00B	1.43B
Stockholders Equity	974.82M	966.02M	1.59B	2.20B	2.56B	2.65B
Cash Flow
Free Cash Flow	462.50M	232.18M	198.46M	165.25M	-391.18M	623.47M
Operating Cash Flow	474.71M	241.93M	223.30M	209.21M	-379.80M	654.65M
Investing Cash Flow	-55.48M	14.34M	61.33M	-134.03M	-364.48M	-132.97M
Financing Cash Flow	-426.20M	-242.26M	-334.44M	-73.06M	520.09M	-332.16M

New Sparkle Roll International Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 0.5 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.47, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 37.78 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6909	52 Neutral	HK$242.77M	10.17	-1.92%	12.36%	-14.32%	-192.28%
1959	46 Neutral	HK$2.01B	-4.04	-48.30%	―	-41.19%	30.99%
3836	45 Neutral	HK$1.54B	-18.53	-4.42%	3.49%	11.33%	56.94%
1771	45 Neutral	HK$147.60M	-0.47	-8.81%	―	-24.42%	-115.68%
0970	44 Neutral	HK$314.04M	-1.53	-19.65%	―	-14.26%	84.90%

New Sparkle Roll International Group Limited Corporate Events

New Sparkle Roll Plans HK$42.8 Million Share Placement at Discount

New Sparkle Roll International Group Limited has entered into four separate subscription agreements with independent subscribers to issue a total of 112,560,361 new shares under its existing general mandate at HK$0.38 per share, representing about 20% of its current issued share capital and roughly 16.67% of the enlarged share base. The placement, priced at a discount to recent market levels, will raise approximately HK$42.77 million in gross proceeds (about HK$41.67 million net) to be used as outlined by the company for general corporate purposes, subject to listing approval and satisfaction of conditions; the move will dilute existing shareholders but provides fresh equity funding that may strengthen the company’s financial position and flexibility, although completion of each subscription is not guaranteed and investors are urged to exercise caution.

The most recent analyst rating on (HK:0970) stock is a Hold with a HK$0.44 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 Changes Hong Kong Office and Details Partial Debt Recovery Settlement

New Sparkle Roll International Group Limited has changed its principal place of business in Hong Kong to 18/F, Ovest, 77 Wing Lok Street, Sheung Wan, effective 14 January 2026. The company also disclosed additional details on a previously announced litigation matter, explaining that it entered into a HK$4.3 million settlement deed with a loan guarantor after persistent payment defaults, evidence of the guarantor’s serious financial difficulties and multiple bankruptcy petitions, and the high uncertainty and cost of further insolvency or court proceedings; while the settlement partially recovers the outstanding debt and discharges the guarantor’s liability, the company retains the right to pursue the original borrower for the remaining balance, and has cautioned shareholders and potential investors in light of these risks.

The most recent analyst rating on (HK:0970) stock is a Hold with a HK$0.58 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 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.