DoubleU Games Co Ltd: DDI value boost drives higher SOTP; raise price target to W73,000

研报英文原文证据摘录

DoubleU Games Co Ltd: DDI value boost drives higher SOTP; raise price target to W73,000

IdeaM

RiskRisk RewardReward– DoubleU- DoubleUGames Co Ltd Games(192080.KS)Co Ltd (192080.KS)

New initiatives and improving shareholder returns support our Overweight

PRICE TARGET W73,000 OVERWEIGHT THESIS

Base case, sum-of-the-parts. This better captures the dual structure of the consolidated ▪Core social gaming revenues offer stable

entity. cash flows for investments and shareholder

DoubleU Games parent: Discounted cash flow. WACC of 7.1% (risk-free rate: 3.5%; equity returns.

risk premium: 6.0%; beta: 0.6). Terminal growth rate 0%. ▪The company is leveraging SuprNation to

DoubleDown Interactive: current market value, proportionate to DoubleU's 67% stake penetrate the fast-growing iGaming market

Paxie Games: We incorporate the acquisition value of W60bn. in Europe.

recent acquisition of Paxie gives a W72,750 ▪The

presence in the "merge" casual genre, whileConsensus Price Target Distribution W60,000.00 W80,000.00 Whow Games should allow the company to MS PT

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates increase market share in Europe's social

gaming.

▪We expect the company to maintain its

shareholder return framework beyond 2027,

RISK REWARD CHART supported by regulatory tailwinds.

▪Valuation looks attractive to us at 7.5x P/E

KRW for 2026e and offering a 5.7% TSR ratio.

W81,000W81,000(+24.62%)W81,000(+24.62%)(+24.62%)

Consensus Rating Distribution

W73,000W73,000(+12.31%)W73,000(+12.31%)(+12.31%) 100%Overweight

W65,000W65,000W65,000 0% Equal-weight

0% Underweight

MS Rating

W51,000W51,000(-21.54%)W51,000(-21.54%)(-21.54%)

40000 Source: Refinitiv, Morgan Stanley Research

20000 Risk Reward Themes

Self-help: Positive

Special Situation: Positive