Hana Financial Group forecasted that gaming stocks will benefit from the strong dollar. This is based on the assessment that companies like W Games, KRAFTON, and Shift Up have a high proportion of global sales.
On the 23rd, Hana Financial Group noted in its report titled "Examining the Impact of a Strong Dollar on Gaming" that "the average won-dollar exchange rate in the fourth quarter is projected to increase by 5.4% year-on-year to 1,392 won" and added that "if the exchange rate concludes at 1,450.6 won at the end of the fourth quarter, it is expected to reflect profits that exceed the losses of the third quarter."
According to Hana Financial Group, gaming corporations with high global sales shares and workforce based in Korea are considered sectors that will benefit from a strong dollar. The fact that the average exchange rates in the fourth quarter of last year were 6.3% for the yuan, 4.6% for the euro, and 2.5% for the yen is also cited as a factor increasing expectations for gaming stock benefits.
W Games, KRAFTON, and Shift Up have been shown to have global sales proportions exceeding 80%. Notably, these corporations recognize revenue at average quarterly exchange rates, indicating that fluctuations in the dollar exchange rate contribute to their performance.
Hana Financial Group selected W Games as its top pick. Hana Financial Group said, "In particular, W Games is a representative beneficiary of a strong dollar within the gaming sector," adding that "over 80% of all social and online casino revenue is generated globally, with more than 80% of that coming from North America."