W. Games: Stable Goal – 64,000 Won
- SEOUL,South Korea – Hana Securities issued a "buy" rating for W.
- games is establishing new growth engines through its Supernation and Paxi Games, complementing the stable cash flow generated by its existing social casino offerings.The brokerage anticipates annual sales...
- While acknowledging the ongoing decline in social casino settlement liquidity, Hana Securities notes that the strengthening dollar-won exchange rate is currently mitigating this impact.
W. Games Receives ‘Buy’ Rating from Hana Securities; Target Price Set at ₩64,000
Table of Contents
- W. Games Receives ‘Buy’ Rating from Hana Securities; Target Price Set at ₩64,000
- W. Games Stock Analysis: A Deep Dive into Hana Securities’ “Buy” Rating
- What is the “Buy” Rating from Hana Securities?
- What are the Key Drivers Behind Hana Securities’ Positive Outlook?
- What are Hana Securities’ Earnings Expectations for W. Games?
- How are the Sales of Specific Games Projected?
- What About Operating Costs?
- How Does the Target Price Compare to Other Analysts?
- Key Takeaways & Summary table
SEOUL,South Korea – Hana Securities issued a “buy” rating for W. Games (192080.KS) in a report released today, maintaining a target price of ₩64,000. This valuation suggests a potential 25.2% increase from the previous day’s closing price.
Hana Securities’ Analysis of W. Games
according to Hana Securities, W. games is establishing new growth engines through its Supernation and Paxi Games, complementing the stable cash flow generated by its existing social casino offerings.The brokerage anticipates annual sales growth over the five years following 2020, supported by consistent shareholder retention.Though,the report emphasizes the need for continued mergers and acquisitions (M&A) to sustain this growth trajectory.
While acknowledging the ongoing decline in social casino settlement liquidity, Hana Securities notes that the strengthening dollar-won exchange rate is currently mitigating this impact. The report cautions that a downward stabilization of the exchange rate in the long term could pose a risk due to a higher base. As of the end of the fourth quarter, Double U Games holds approximately ₩820 billion in cash, providing ample resources for further M&A activities and scaling operations. The company reportedly plans to pursue at least one or two M&A deals annually.
Earnings Expectations Exceed Consensus
Hana Securities projects consolidated sales of ₩169.4 billion, a 5.6% year-over-year increase and an 8.7% increase quarter-over-quarter. Operating profit is expected to reach ₩67 billion, representing an 8.7% year-over-year increase and a 10.8% increase quarter-over-quarter, with an operating profit margin (OPM) of 39.6%. The brokerage expects the company to benefit from the strong dollar, with an average dollar-won exchange rate of ₩1,452.9, up 9.3% year-over-year and 3.9% quarter-over-quarter.
Double Down Casino sales are estimated at ₩124.6 billion, up 7.7% year-over-year and 10.0% quarter-over-quarter. Double Yu Casino sales are projected at ₩43.3 billion, down 0.2% year-over-year but up 5.3% quarter-over-quarter. Supernation sales are anticipated to reach ₩17.2 billion, a 37.2% increase quarter-over-quarter, driven by expanded marketing efforts since November. Operating costs are estimated at ₩102.4 billion, up 3.6% year-over-year and 7.4% quarter-over-quarter. Platform costs are projected at ₩44 billion, up 0.8% year-over-year and 7.0% quarter-over-quarter, with expectations of continued commission rate reductions through the activation of its own direct-to-consumer (DTC) platform.
Target Price Maintained
Lee Joon-ho, an analyst at Hana Securities, reaffirmed the ₩64,000 target price, unchanged from the previous assessment issued Jan. 8, 2025.
Consensus Comparison
Hana securities’ target price is 3.8% lower than the average target price of ₩66,500 among all securities firms over the past six months, but 6.7% higher than Hyundai Motor Securities’ target of ₩60,000. This suggests a relatively conservative valuation of W. Games’ stock price by Hana Securities compared to its peers.
The average target price among all securities firms has increased by 3.4% from ₩64,333 over the past six months, indicating an overall optimistic outlook on W. Games’ future stock performance.
W. Games Stock Analysis: A Deep Dive into Hana Securities’ “Buy” Rating
This article provides a comprehensive analysis of the recent “buy” rating issued by Hana Securities for W. games (192080.KS). We’ll explore the key factors driving this positive outlook, including earnings expectations, growth strategies, and a comparison of analyst opinions. All information is derived from the provided report.
What is the “Buy” Rating from Hana Securities?
Hana Securities has initiated a “buy” rating for W.Games. This indicates that the brokerage firm believes the stock is likely to perform well and that investors should consider purchasing it. The report also maintains a target price of ₩64,000,suggesting a potential increase of 25.2% from the previous day’s closing price.
What are the Key Drivers Behind Hana Securities’ Positive Outlook?
Hana Securities’ positive assessment of W. Games is based on several factors, including:
- New Growth Engines: W. Games is expanding beyond its existing social casino offerings by establishing new growth engines through Supernation and Paxi Games.
- Stable Cash Flow: The company benefits from the stable cash flow generated by its established social casino business.
- M&A Activity: The report emphasizes that continued mergers and acquisitions (M&A) are a key part of the company’s growth trajectory. Double U games has approximately ₩820 billion in cash to support these activities.
- Shareholder Retention: Consistent shareholder retention is a positive factor in supporting long-term growth.
What are Hana Securities’ Earnings Expectations for W. Games?
Hana Securities projects strong financial performance for W. Games. Here’s a breakdown of their key expectations:
- Consolidated Sales: ₩169.4 billion, a 5.6% year-over-year increase and an 8.7% increase quarter-over-quarter.
- Operating Profit: ₩67 billion, representing an 8.7% year-over-year increase and a 10.8% increase quarter-over-quarter, with an operating profit margin (OPM) of 39.6%.
- dollar-Won Exchange Rate: The brokerage expects the company to benefit from the strong dollar, with an average dollar-won exchange rate of ₩1,452.9, up 9.3% year-over-year and 3.9% quarter-over-quarter.
How are the Sales of Specific Games Projected?
The report provides detailed sales projections for specific W. Games titles:
- DoubleDown Casino sales: ₩124.6 billion, up 7.7% year-over-year and 10.0% quarter-over-quarter.
- Double U Casino Sales: ₩43.3 billion, down 0.2% year-over-year but up 5.3% quarter-over-quarter.
- Supernation Sales: ₩17.2 billion, a 37.2% increase quarter-over-quarter,driven by expanded marketing efforts since November.
What About Operating Costs?
Operating costs are also a key consideration. The report estimates:
- Total Operating Costs: ₩102.4 billion, up 3.6% year-over-year and 7.4% quarter-over-quarter.
- Platform Costs: ₩44 billion, up 0.8% year-over-year and 7.0% quarter-over-quarter,with expectations of continued commission rate reductions through the activation of its own direct-to-consumer (DTC) platform.
How Does the Target Price Compare to Other Analysts?
The ₩64,000 target price set by Lee Joon-ho, an analyst at Hana Securities, is a key data point. How does it stack up against the consensus?
- Compared to Peers: Hana Securities’ target price is 3.8% lower than the average target price of ₩66,500 among all securities firms over the past six months.
- hyundai Motor Securities: The target price is 6.7% higher than hyundai Motor Securities’ target of ₩60,000.
- Overall Optimism: The average target price among all securities firms has increased by 3.4% from ₩64,333 over the past six months, indicating a generally positive view of W. Games’ future stock performance.
Key Takeaways & Summary table
Here’s a fast summary of the key takeaways from Hana Securities’ report:
- “Buy” Rating: Hana Securities recommends buying W.Games stock.
- Target Price: ₩64,000.
- Growth Drivers: New games, current cash flow, M&A, shareholder retention.
- Earnings Expectations: strong revenue and profit growth.
- Industry Considerations: Acknowledges the impact of the dollar-won exchange rate.
This table summarizes the key financial projections made by Hana Securities for W. games:
| Metric | Projected Value | Change |
|---|---|---|
| Consolidated Sales | ₩169.4 billion | +5.6% YoY, +8.7% QoQ |
| Operating Profit | ₩67 billion | +8.7% YoY, +10.8% QoQ |
| Operating Profit Margin (OPM) | 39.6% | – |
| DoubleDown Casino Sales | ₩124.6 billion | +7.7% YoY,+10.0% QoQ |
| Double U Casino Sales | ₩43.3 billion | -0.2% YoY, +5.3% QoQ |
| supernation Sales | ₩17.2 billion | +37.2% QoQ |
| Total Operating Costs | ₩102.4 billion | +3.6% YoY, +7.4% QoQ |
| Platform Costs | ₩44 billion | +0.8% YoY, +7.0% QoQ |
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making investment decisions.