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

New Sparkle Roll International Group Limited

(HKEX:0970)

Select Model

Rating:40Underperform

Price Target:HKD 0.25▼(-5.00% Downside)

Action:downgraded

Date:10/04/26

The overall score is driven mainly by very weak profitability, compressed margins and volatile cash flows, which create a high‑risk financial profile despite moderate leverage and currently positive cash generation; technical indicators confirm a persistent downtrend with oversold momentum, while valuation appears inexpensive but is constrained by negative earnings, keeping the stock’s risk‑reward skewed toward caution.

Positive Factors

Revenue RecoveryThe return to revenue growth indicates that demand or business activity stabilized after two declining years. While not yet evidence of a full recovery, renewed top-line momentum can support operating leverage and provide a base for rebuilding earnings over the next several quarters.

Negative Factors

Weak Profitability and MarginsSeverely compressed gross margin and continuing net losses show that revenue recovery has not translated into durable earnings power. Persistently weak profitability limits reinvestment capacity, makes cash generation less dependable, and leaves the business exposed to further operating deterioration.

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

Market Cap: HKD 175.59M
Dividend Yield: ―
Average Volume (3M): 686.67K
Price to Earnings (P/E): -1.9
Beta (1Y): -0.60
Revenue Growth: 13.98%
EPS Growth: 90.84%
Country: Hong Kong
Employees: 290
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Dealerships

New Sparkle Roll International Group Limited Business Overview & Revenue Model

Company Description

Established in 1996 and headquartered in Wan Chai, Hong Kong, New Sparkle Roll International Group Limited operates as an investment holding company with a primary focus on the distribution and dealership of luxury goods and high-end automobiles acro...

New Sparkle Roll International Group Limited Financial Statement Overview

Summary

Revenue has recently stabilized after prior declines, but margins have compressed sharply, net income has been negative for multiple years, and cash flows are volatile despite being currently positive, resulting in a high‑risk financial profile.

Income Statement

18Very Negative

Balance Sheet

42Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.36B	2.36B	2.07B	3.26B	4.00B	4.32B
Gross Profit	172.58M	172.58M	140.96M	306.35M	578.13M	856.43M
EBITDA	20.16M	7.25M	-614.38M	-473.71M	150.54M	315.36M
Net Income	-91.71M	-91.71M	-718.18M	-613.42M	-53.13M	34.05M
Balance Sheet
Total Assets	1.67B	1.67B	1.91B	2.85B	3.99B	4.73B
Cash, Cash Equivalents and Short-Term Investments	152.00M	152.00M	107.75M	169.97M	271.73M	299.37M
Total Debt	608.61M	608.61M	780.29M	1.02B	1.35B	1.47B
Total Liabilities	753.71M	753.71M	937.56M	1.26B	1.76B	2.00B
Stockholders Equity	906.53M	906.53M	966.02M	1.59B	2.20B	2.56B
Cash Flow
Free Cash Flow	173.83M	173.83M	232.18M	198.46M	165.25M	-391.18M
Operating Cash Flow	205.87M	205.87M	241.93M	223.30M	209.21M	-379.80M
Investing Cash Flow	-76.16M	-76.16M	14.34M	61.33M	-134.03M	-364.48M
Financing Cash Flow	-124.69M	-124.69M	-242.26M	-334.44M	-73.06M	520.09M

New Sparkle Roll International Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.26

Price Trends

50DMA0.34Negative

100DMA0.34Negative

200DMA0.39Negative

Market Momentum

MACD-0.02Negative

RSI26.10Positive

STOCH26.94Neutral

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 0.26 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.34, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 26.10 is Positive, neither overbought nor oversold. The STOCH value of 26.94 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:0970 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:1268	44Neutral	HKD 390.41M	-1.58	-11.37%	13.54%	-17.65%	92.47%
HK:1728	42Neutral	HKD 1.43B	-0.45	58.35%	―	1.77%	45.42%
HK:3836	41Neutral	HKD 621.89M	-0.86	-13.15%	―	31.42%	-181.28%
HK:0881	40Underperform	HKD 5.28B	-1.73	-5.77%	30.61%	-5.03%	-198.49%
HK:0970	40Underperform	HKD 175.59M	-1.89	-9.75%	―	13.98%	90.84%
HK:3669	39Underperform	HKD 1.29B	-0.62	-20.16%	22.36%	-16.05%	45.22%

* Consumer Cyclical Sector Average

Performance Comparison

HK:0970 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0970	New Sparkle Roll International Group Limited	0.26	-0.48	-64.86%
HK:3669	China Yongda Automobiles Services Holdings Limited	0.68	-0.99	-59.28%
HK:1268	China MeiDong Auto Holdings	0.29	-1.30	-81.72%
HK:1728	China Zhengtong Auto Services Holdings	0.14	0.00	0.00%
HK:3836	China Harmony Auto Holding Limited	0.42	-0.83	-66.27%
HK:0881	Zhongsheng Group Holdings Ltd.	2.21	-9.95	-81.78%

New Sparkle Roll International Group Limited Corporate Events

New Sparkle Roll Confirms 11.54% Stake in Bang & Olufsen With No Current Plan to Sell

Oct 16, 2026

New Sparkle Roll International Group Limited has moved to address recent media reports and market rumors about its stake in Danish audio company Bang & Olufsen A/S. The group clarified that it currently holds about 11.54% of B&O’s issue...

New Sparkle Roll Updates Bermuda Registered Office Address

Oct 14, 2026

New Sparkle Roll International Group Limited has announced a change of its registered office address in Bermuda, effective 3 August 2026, relocating to Richmond House, 12 Par-la-Ville Road, Hamilton HM 08. The move reflects an administrative adjustme...

New Sparkle Roll Wins Unanimous Shareholder Backing for Capital Mandates at AGM

Aug 28, 2026

Shareholders of New Sparkle Roll International Group Limited unanimously approved all resolutions at the annual general meeting held on 28 August 2026 in Hong Kong. The poll results showed 312,809,489 votes cast in favour, with no opposition to any i...

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: Oct 04, 2026

New Sparkle Roll International Group Limited AI Stock Analysis