[Click e-Stock] "DoubleUGames Automates Game Development with AI, Target Price Raised"

Foundation for Expanding a Multi-Title Lineup

On June 2, IBK Investment & Securities raised its target price for DoubleUGames from 70,000 won to 100,000 won, highlighting the company’s AI capabilities, and maintained its “Buy” investment rating.

Lee Seunghoon, an analyst at IBK Investment & Securities, stated, “The target price was calculated by applying a price-to-earnings ratio (PER) of 11 times the expected earnings per share (EPS) for this year in the gaming industry.”

In the first quarter of this year, DoubleUGames reported consolidated sales of 205 billion won and an operating profit of 68.5 billion won. This marks the first time the company has surpassed 200 billion won in quarterly revenue since its founding, meeting market expectations. Lee noted, “The casual games division turned a profit for the first time ever, increasing its contribution as a new growth engine. On the cost side, even though the company spent aggressively on marketing to acquire global users for new casual games, the proportion of direct-to-consumer (DTC) payments in social casino games surged to 38.7%. As a result, platform app market fees dropped significantly to 36.5 billion won, enabling the company to maintain a high operating margin.”

In addition, the company has strengthened its AI capabilities by automating the entire game development process using AI. Lee explained, “DoubleUGames has succeeded in internalizing an automated workflow system for all pre-development processes through the AI Lab established within its casual games subsidiary, Paxi Games. With this, the entire process—from planning to graphic asset creation, balancing tests, and global launch—can be completed in just three weeks by a single developer, establishing a highly efficient AI-based development process. This foundation allows DoubleUGames to expand its hyper-casual lineup focused on multiple releases without risk.”

Furthermore, Lee added, “The ongoing plan to acquire the remaining shares of its Nasdaq-listed subsidiary, DoubleDown Interactive, and make it a wholly owned subsidiary within this year is also seen as a positive policy.”

This content was produced with the assistance of AI translation services.