[Infostock Daily= Reporter An Hoe Hyun] SK Securities said on DoubleUGames on the 2nd that the intensity of benefits from COVID-19 has decreased and Taiwan's new work has been sluggish, but it continues to remain undervalued compared to its overseas competitors. As a result, the investment opinion remained 'Buy' and the target stock price remained at 85,000 won.
DoubleUGames's sales and operating profit in the fourth quarter of last year were 166.5 billion won and 49.3 billion won, up 30% and 26.3%, respectively, from the same period last year. Although it fell slightly below the consensus, the main factors are the continued decline in payments, which showed a significant increase in the second quarter due to COVID-19, and the won-dollar exchange rate, which fell 5.9% from the previous quarter.
"The amount of slot payments for both DoubleDown Casino and DoubleU Casino surged due to lockdown in the U.S., a major market, in the second quarter of last year, but it seems to be gradually stabilizing in the second half of the year," researcher Lee analyzed, adding, "Usually, the fourth quarter is a peak season for social casino games due to many holidays, but the year-end peak season effect was not significant as the hours of indoor activities remained high throughout the year due to COVID-19."
The researcher Lee lowered its performance estimate, which was somewhat high in consideration of this trend of stabilizing sales, and judged that in order to recover growth trend, it needs better-than-expected performance of new works or mergers · acquisitions using abundant cashable assets.
On top of that, it is positive that Playtika, the world's No. 1 social casino company with Israeli nationality, has recently been successfully listed on the U.S. NASDAQ market.
It is also expected that its subsidiary DDI, which accounts for 55% of DoubleUGames' consolidated operating profit, will be re-listed on NASDAQ due to the success of its competitors' initial public offering(IPO). "When listed successfully, it will be able to fill a certain portion of the valuation gap with its competitors," Lee predicted.
Reporter An Hoe Hyun firstname.lastname@example.org