As the third-largest game art outsourcing studio in Asia and fourth largest globally, Winking Studios has 82% of its revenue derived from art outsourcing, where environment and characters are designed for games.
UOB Kay Hian (UOBKH) has initiated coverage on newly-listed Winking Studios, in anticipation of a surge in game popularity in the coming years and the group’s healthy operating cash flow. Analyst Heidi Mo has a “buy” call with a target price of 35 cents, representing a 32.1% upside.
Winking Studios, which launched on the Catalist board of the Singapore Exchange (SGX:S68
) (SGX) last November, operates as a game art outsourcing and game development studio in Asia. It provides character and environment concept design, and illustrations/posters; 3D modelling; in-game animation; and game development services.
Mo highlights three strengths of the stock. First, she notes that Winking Studios has a strong 25-year track record of delivering end-to-end art outsourcing and game development services for the gaming sector.
