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Source: DoubleUGames |
[Alpha Biz= Kim Sangjin] Hana Securities has maintained a "Buy" recommendation for DoubleU Games, with a target price of KRW 64,000, citing the acquisition of gaming companies SuperNation and Fakksy Games as new growth drivers.
On Wednesday, Hana Securities forecast DoubleU Games' consolidated fourth-quarter revenue and operating profit to reach KRW 167.9 billion and KRW 68.6 billion, respectively, reflecting increases of 9.0% and 15.4% compared to the previous quarter. These figures slightly exceed market expectations.
For Q4, DoubleDown Casino revenue is expected to rise 10.8% QoQ to KRW 111.1 billion, while DoubleU Casino and SuperNation are projected to see revenue growth of 5.1% and 18.3% QoQ, reaching KRW 40.2 billion and KRW 12.6 billion, respectively.
Hana Securities stated, "DoubleU Games is one of the beneficiaries of a strong dollar since 100% of its revenue is generated in North America and Europe, while most of its fixed costs are paid in KRW."
The company’s 2025 operating profit is expected to grow by 3.4% YoY to KRW 265.5 billion.
Hana Securities added, "With the growth of SuperNation combined with the acquisition of Fakksy Games, DoubleU Games is projected to achieve double-digit revenue growth for two consecutive years. The company plans to finalize the acquisition of Turkey-based Fakksy Games this February."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
