Shinhan Investment Corporation evaluated on the 28th that DoubleU Games would resume growth in size due to the performance of new businesses. Shinhan Investment Corporation maintained a 'buy' investment opinion on DoubleU Games and adjusted the target price from 69,000 won to 70,000 won. The previous trading day's closing price for DoubleU Games was 48,700 won.
Kang Seok-oh, a researcher at Shinhan Investment Corporation, noted, "We confirmed that DoubleU Games generated significant marketing execution and return on investment (ROI) for the first time in the fourth quarter after acquiring the online casino company SuperNation at the end of 2023," and added, "Revenue, which was around 10 billion won per quarter, recorded 12.6 billion won, an 18% increase compared to the previous quarter."
He also projected, "In January of this year, we broke the record for highest revenue (5.6 billion won)," and "We expect to enter a phase where the execution of marketing and the increase in revenue will be proportional, achieving record revenue every quarter."
Expectations for Pax Games, a casual game developer in Turkey that DoubleU Games decided to acquire last December, were also expressed. Kang noted, "The representative work 'Merge Studio' of Pax Games, which will be incorporated, has been setting monthly revenue records since the second half of last year," and projected, "As of January of this year, it achieved revenue of 3.2 billion won, and will generate over 40 billion won in annual revenue." Pax Games is expected to complete acquisition procedures next month and be consolidated starting in the second quarter of this year.
Kang judged that DoubleU Games will likely experience faster growth in performance than expected by streamlining the costs of existing businesses and expanding the scale of new businesses. He stated, "The external growth of online casinos and casual games will trigger a reassessment of the price-to-earnings ratio (PER) at 6.2 times this year," and "The 820 billion won in cash held will be used for mergers and acquisitions (M&A) and shareholder returns to lead a stable stock price boost."