Source Facts: Yuanta Securities / June 30, 2026
Investment Opinion and Target Price: BUY / 84,000 KRW
Key Momentum: Cost reduction through the expansion of Direct-to-Consumer (DTC) channels and profit diversification via the turnaround of subsidiaries (Pixie Games, SuperNation)
📊 1. [Valuation Metrics and Investment Indicators Analysis]
- Current price (as of June 29, 2026): 63,500 KRW.
- The target price was calculated by applying a target PER of 7.8x, which is the average of the upper range of the past 3-year valuation, to the 12-month forward (12M Fwd) EPS of 10,728 KRW.
- Upon the completion of the full acquisition of DDI (DoubleDown Interactive), profits previously attributed to non-controlling interests will transition to controlling shareholders, leading to an expected improvement in consolidated EPS.
🚀 2. [Market Opportunity (TAM) and Detailed Performance Estimates]
- 2026 Annual Performance Outlook: Revenue of 841.6 billion KRW (YoY +17%) and operating profit of 285.7 billion KRW (YoY +23%, OPM 34%) are expected.
- Growth Drivers:
- Expansion of Social Casino DTC proportion: Reached 38.7% as of 1Q26, reducing variable costs relative to revenue by 25%.
- Turnaround of new business segments: Pixie Games and SuperNation have both turned profitable in the casual and iGaming sectors, respectively, expanding the profit base into new businesses.
- Casual game strategy: Promoting both top-line expansion and profitability simultaneously by using AI to shorten development/verification cycles and focusing marketing on games with proven post-launch performance.
- Capital Utilization: The combined cash of DoubleUGames and DDI is approximately 900 billion KRW (DDI holds about 600 billion KRW), which can be utilized for group-wide M&As and shareholder returns.
📝 Editor’s Comment (by K-STOCK Editor)
DoubleUGames has equipped itself with a “dual engine”: profitability improvements through DTC channel expansion and the turnaround of new subsidiaries, all built upon the stable cash-generating foundation of its existing social casino business. Notably, the full acquisition of DDI is a significant event that not only simplifies governance but also maximizes capital efficiency. With effective AI-driven marketing strategies yielding results in the new casual game sector, investors should pay close attention to the pace at which the company transforms into a multi-business structure that transcends its identity as a mere social casino operator.
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