[Click eStock] "DoubleU Games, a Growing Low PBR Stock"

Yuanta Securities analyzed on the 15th that DoubleU Games, a company with a price-to-book ratio (PBR) below 1 due to low growth, is expected to be re-rated as growth recovers through new businesses.

Lee Chang-young, a researcher at Yuanta Securities, stated in a report on the same day, “Last year, DoubleU Games exceeded market expectations with operating revenue of 153.5 billion KRW, operating profit of 62.8 billion KRW, and controlling net profit of 36.7 billion KRW,” and explained, “Despite the overall slowdown in the global social casino game market, the company showed the highest growth rate within the social casino market, growing 6.8% quarter-on-quarter.”

This year, it is analyzed that despite a decrease in marketing expenses, sales are expected to remain solid as the market concentration strengthens around top games.

He said, “Sales in January this year increased by 50% compared to September last year,” and added, “New app development and expanded marketing are expected to become new growth drivers to offset the slowdown in existing social casino game sales.”

He also stated, “Entry into the casual game market with match-3, bingo, and skill games is planned, and scale-up through utilization of internal studios and M&A of external studios is expected,” and forecasted, “Skill games officially launched with bingo games in December last year will increase sales by adding solitaire and bubble shooter in the future.”