PETALING JAYA: Number forecast operator ( O) Sports Toto Bhd
’s British luxury car distribution unit HR Owen plc’s sales outlook is expected to weigh on the company in the coming quarters due to lower consumer sentiment in Britain.
Analysts expect Sports Toto’s O business to continue supporting the company’s financial performance, with Hong Leong Investment Bank (HLIB) Research noting that the second-half of the company’s financial year ending June 30, 2025 (FY25), should deliver stronger results than the first half.
This would be driven primarily by robust performance in its third quarter ending March 31 (3Q25), fuelled by the record-breaking 6/58 jackpot prize of RM121.7mil and the seasonality boost from the Chinese New Year festivities.
The research house, which has maintained a “hold” rating on the stock but with a raised target price to RM1.64 per share, said luxury car sales remains under pressure in Britain, similar to the first half amid high inflation and the underperformance of several recent new models.
“We anticipate the O segment to continue doing well anchored by the recent resurgence in interest following its record-high jackpot.
“However, HR Owen may continue to be challenging given the soft consumer sentiment and the less favourable product mix,” HLIB Research said.
“The weaker revenue from HR Owen was also dragged lower by unfavourable foreign exchange rates due to the ringgit’s strength despite the car distributor experiencing growth of 2.4% as a result of positive demand within the used-car segment.
“In tandem with lower revenue, core profit after tax and minority interests shrank slightly by 2.8%,” it added.
