Latest Forum Topics / WinkingStudios Last:0.29 -- |
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Multi-bagger in the Making
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For_The_Next_Leg
Veteran |
06-Feb-2025 10:35
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M& A will push its revenue to higher heights!
 
https://www.theedgesingapore.com/news/stocks-watch/our-2025-picks-winking-studios--capturing-growth-ma
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tedlim
Veteran |
28-Jan-2025 09:45
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Biggest video game deals of 2024, plus more takeaways from InvestGame&rsquo s annual report InvestGame has released its annual gaming deals report. Here are the biggest transactions that took place in the industry last year, as well as key trends reflecting the current market environment. Key takeaways - According to InvestGame&rsquo s 2024 report, there were 665 closed deals in the games industry last year, up 14% from 2023. - Private equity was the largest sector in 2024, with 466 deals closed (+12.2% year-over-year). The number of M& A deals increased 18.5% to 147, excluding announced but not yet closed transactions. There were also 52 public offerings, up 18.1% year-over-year. - All 2024 deals had the total value of $23.2 billion, down 72.5% from 2023. However, there was a 46.8% increase when excluding Microsoft&rsquo s record-breaking $68.7 billion acquisition of Activision Blizzard. InvestGame noted that M& A activity last year shifted from &ldquo opportunistic, short-term &lsquo arbitrage&rsquo deals to more strategic, long-term, and objective-driven transactions, with deal-making activity remaining above pre-COVID levels.&rdquo In terms of private equity, VCs started investing more in platform and tech startups, while corporate funds focused on game development studios. This trend will continue in 2025. Analysts expect M& A activity this year to match or slightly exceed 2024 levels, with rising interest in AI technologies creating new opportunities in Web3 and tech-centric ventures. According to InvestGame, we may see some private studios file for an IPO due to a more favorable market environment, while public companies &ldquo may increasingly rely on PIPEs (private investment in public equity) to finance future growth.&rdquo The biggest video game deals and investments of 2024 Below are the top 5 M& A deals of 2024 in the games industry: - EQT&rsquo s acquisition of Keywords Studios &mdash $2.8 billion - Miniclip&rsquo s acquisition of Easybriain &mdash $1.2 billion (divested by Embracer Group as part of its restructuring - CVC Capital&rsquo s acquisition of Jagex &mdash $1.1 billion - Playtika&rsquo s acquisition of SuperPlay &mdash up to $2 billion ($700 million upfront) - MTG&rsquo s acquisition of Plarium &mdash up to $820 million ($620 million upfront) Other notable deals include Take-Two&rsquo s acquisition of Gearbox Entertainment for $460 million and Beacon Interactive&rsquo s management buyout of Saber Interactive for $247 million. Both transactions were part of Embracer Group&rsquo s restructuring, in which the Swedish holding company divested some of its core assets to recover from its financial hurdles. In terms of private equity, Disney&rsquo s $1.5 billion investment in Epic Games leads the way. It is followed by Aonic, which raised &euro 152 million from Metric Capital Partners and Active Ownership, and Build A Rocket Boy, which raised $110 million in a round led by RedBird Capital Partners. IPO activity remained low in 2024, with the most notable public offerings coming from outsourcing studio Winking Studios and Stellar Blade developer Shift Up. The latter raised $320 million in an IPO, the largest for a South Korean game company since Krafton. |
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Joelton
Supreme |
27-Jan-2025 10:16
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Our 2025 picks: Winking Studios &mdash Capturing growth via M& A
 
Winking Studios, listed in November 2023, has emerged as one of the top-performing IPOs on the Singapore Exchange (SGX). From an IPO price of 20 cents, shares in the company have steadily gained to close at 32 cents on Jan 20, a gain of about 8.5% for the day following the announcement of its latest acquisition in China. This brings the group&rsquo s maket capitalisation to $145.6 million.
 
The company also claims to be the third-largest gaming development and production player in Asia and the fourth-largest globally. It is 64.2% owned by Acer Gaming, the e-sports division of leading Taiwanese hardware and electronics giant Acer Inc, with both companies listed on the Taiwanese Stock Exchange.
 
With the proceeds from its IPO, Winking Studios is expanding its presence in North Asia, Southeast Asia and Europe. Since listing, the company has made a series of acquisitions. In December 2023, it purchased Taiwan-based On Point Creative. In April 2024, it acquired Malaysian art and animation outsourcing firm Pixelline Production. On Jan 17, it announced the acquisition of Shanghai Mineloader Digital Technology in China for $27.2 million &mdash its largest deal to date.
 
&ldquo Mineloader&rsquo s team of more than 460 employees will be a valuable addition to our group&rsquo s existing headcount of over 800, boosting our service offerings in this segment and adding new clients,&rdquo says Winking Studios&rsquo executive chairman, CEO and founder Johnny Jan.
 
Winking Studios&rsquo earnings growth trajectory has yet to fully form. In its most recent 1HFY2024 ended June 30, 2024, earnings declined by 28% y-o-y to US$909,000 ($1.24 million) from US$1.26 million a year ago, due mainly to heftier marketing costs plus listing expenses.
 
The company had to put up with lower gross margins of 27.9% from 30.7% a year ago, amid the completion of its acquisitions and the integration process, which reduced efficiency. Several projects have also been deferred to 2HFY2024 on the request of customers. Nonetheless, revenue was up 7.1% y-o-y to US$15.2 million, with orders from both new and existing customers.
 
Jan says the delays in game launches, particularly in China, were temporary and linked to regulatory challenges. With the Chinese government&rsquo s restrictions on game releases now lifted, he believes the company is well positioned to capitalise on the recovery of the gaming industry.
 
To access a broader pool of investors, Winking Studios has also been listed on the London Stock Exchange&rsquo s (LSE) Alternative Investment Market (AIM). The London listing serves strategic business objectives. &ldquo We believe that listing on AIM will allow us to build stronger relationships with European gaming companies and position ourselves as a leading player in the region,&rdquo says Jan. The counter&rsquo s IPO in London was at 15 pence per share. As of Jan 14, its shares on LSE AIM are trading at GBP0.2065 ($0.34).
 
Even though Winking Studios is in growth mode, it announced in October 2024 plans to adopt a &ldquo conservative&rdquo annual dividend policy that will pay out around 5% to 15% of its annual distributable profits. &ldquo In establishing the group&rsquo s proposed dividend policy, the board aims to maximise total shareholder return, which it feels can be achieved in the short to medium term through primarily focusing on business growth,&rdquo the company adds.
 
Winking Studios says it is actively pursuing M& A opportunities to strengthen its value proposition across the global gaming services value chain, offering &ldquo cost-effective solutions&rdquo to its Western and Asian clients across various market segments.
 
SAC Capital remains positive about Winking Studios&rsquo growth prospects, which are driven by a strong acquisition pipeline bolstered by funds raised through the recent placement and the anticipated advantages of the dual listing. In its unrated report on Jan 15, SAC Capital highlights three key investment theses: inorganic growth as a primary driver the London listing providing access to a wider investor base and Acer as a parent company, offering enhanced operational capabilities and an expanded industry network.
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Joelton
Supreme |
23-Jan-2025 09:36
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Winking Studios - the game changer in gaming art outsourcing
 
If you&rsquo ve ever marveled at the breathtaking visuals of a game, there&rsquo s a good chance Winking Studios (SGX: WKS) played a role in creating them. This Singapore-based company has quietly grown into a global powerhouse in gaming art outsourcing, earning its reputation as the go-to partner for top game developers. For investors, Winking Studios represents a dynamic opportunity in a rapidly expanding industry.
 
Humble Beginnings and Rapid Growth
Winking Studios was founded in 2003 with a simple yet ambitious goal: to support game developers with high-quality art outsourcing services. Starting with a small team focused on 2D and 3D art, the studio quickly earned the trust of industry leaders. Fast forward to today, and Winking Studios employs over 800 professionals across nine locations, including Kuala Lumpur, Taipei, Shanghai, and Nanjing.
 
Over the years, the company has achieved notable milestones, from developing award-winning games like X.A.O.C. to topping VR game sales charts with Unearthing Mars. Dual-listed on the London and Singapore Stock Exchanges (Ticker: WKS), Winking Studios now serves 22 of the top 25 game publishers worldwide, offering a full suite of services ranging from character design to animation.
 
The financial results of its business model are compelling. In the first half of 2024, Winking Studios reported a 7.1% revenue growth, reaching USD 15.23 million. Japan became a standout market, with orders nearly tripling due to a strong focus on business development. Furthermore, the company maintains a strong balance sheet, with no debt and substantial cash reserves to fuel further acquisitions and growth.
 
M& A - A Proven Strategy for Growth
Winking Studios has consistently expanded its capabilities through strategic acquisitions. In 2024, the company acquired On Point Creative in Taiwan and Pixelline Production in Malaysia, strengthening its foothold in Asia. Most recently, in January 2025, Winking announced its largest acquisition yet: Shanghai Mineloader Digital Technology Co., Ltd., valued at approximately RMB 146 million (USD 24.5 million upfront). This deal will add over 460 skilled professionals and deepen Winking&rsquo s expertise in console gaming.
 
This M& A playbook is similar to Keywords Studios, who was acquired in a 2.2 billion pounds deal by EQT (with Temasek being a co-partner).
 
Adding to its appeal for investors, Winking Studios aims to distribute 5% to 15% of its annual profits as dividends.
 
Why Investors Should Take Note
According to market statistics, the global gaming industry is booming, projected to reach USD 317.6 billion by 2027, where the market value is worth more than that of the music and movies market value combined. As a leader in game art outsourcing, Winking Studios is strategically positioned to ride this wave. Here are key reasons investors should consider Winking Studios:
A Bright Future Ahead
Winking Studios&rsquo journey from a small art outsourcing studio to a global leader is a testament to its commitment to quality and innovation. With plans to expand further, including potential acquisitions in Western markets, the company looks poised to capture a greater share of the global gaming services market.
 
For investors, Winking Studios offers a unique blend of stability and high-growth potential in a defensive industry, which deserves to be under our radar.
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WBdisciple
Master |
22-Jan-2025 14:58
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https://invest-alpha.sg/view& id=269 (interesting insights for reference..) |
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Joelton
Supreme |
18-Jan-2025 13:24
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Winking Studios: Proposed Acquisition of One of the Leading Game Art Outsourcing and Development Studios in Asia
 
M& A Strategy Gains Momentum with the Group&rsquo s Largest M& A Transaction to date
 
Winking Studios Limited (AIM / SGX:WKS) (the &ldquo Company&rdquo and together with its subsidiaries, the &ldquo Group&rdquo ), one of Asia' s largest AAA game art outsourcing studios and an established game development company, is pleased to announce the proposed conditional acquisition of Shanghai Mineloader Digital Technology Co., Ltd. (the &ldquo Target&rdquo , &ldquo Mineloader&rdquo or &ldquo 上 海 皿 鎏 數 字 科 技 有 限 公 司 &rdquo and together with its subsidiaries, the &ldquo Target Group&rdquo ), one of Asia&rsquo s leading game art outsourcing and development studios (the &ldquo Proposed Acquisition&rdquo ).
 
Funded from the Company&rsquo s internal cash resources, the consideration payable for the acquisition is approximately RMB 146 million (or approximately S$27.2 million or £ 16.3 million), of which the upfront payment is approximately RMB131.4 million (or approximately S$24.5 million or £ 14.7 million), with the balance to be paid on the fifth anniversary following completion of the Proposed Acquisition subject to the satisfaction of certain conditions and performance targets. 
 
·     With its business roots tracing back to 2003 when the Target Group established its first studio, Mineloader is currently headquartered in Shanghai and has developed integrated capabilities across three major gaming platforms and expanded its workforce to 466 employees (as at 30 November 2024) across three studios in Asia
 
·     In its latest full audited period, Mineloader delivered EBITDA of approximately S$3.6 million for the financial year ended 31 December 2023 (&ldquo FY2023)
 
·     The majority of Mineloader&rsquo s revenue is generated from game art outsourcing services (an average of approximately 90% for FY2022 and FY2023) and its strength in console platform games can provide more revenue diversity for the Group
 
·     With a reputable track record within the global gaming services industry, Mineloader has established enduring working relationships with blue-chip gaming clients globally, gaining more traction in Western markets in recent years
 
·     Spearheaded by industry veterans with extensive past experience at renowned Japanese gaming companies, who will continue to lead the business of the Target Group while benefitting from the Group&rsquo s central resources and expertise
 
·     The Proposed Acquisition is expected to deliver increased scale across Asia, new Western clients, and increased resources to deliver on the Group&rsquo s global ambitions
 
·     Completion of the Proposed Acquisition is subject to certain conditions precedent, as detailed below, which are expected to be satisfied before the end of the second quarter of 2025
 
Accelerating Growth and Innovation with its M& A Strategy
 
Since its listing on the Catalist of the Singapore Stock Exchange in November 2023 and as detailed in its AIM Admission Document in November 2024, the Group has embarked on an M& A strategy aimed at increasing its global presence through the acquisition of companies that align with its sales growth, capability enhancement, and global market expansion goals.
 
The Proposed Acquisition follows the two acquisitions completed in 2024 of Taipei-based art outsourcing studio On Point Creative Co., Ltd. and Kuala Lumpur-based Pixelline Production Sdn. Bhd, which together significantly enhance the Group&rsquo s resource base, service offerings and market reach.
 
Commenting on the Proposed Acquisition, Executive Director and Chief Executive Officer (Founder) of Winking Studios Limited, Mr Johnny Jan (詹 承 翰 ), commented:
 
&ldquo This marks our largest acquisition to date and represents a pivotal step that augments our position in the global video games industry, unlocking new horizons for growth and innovation.&rdquo
 
&ldquo Game art is essential in a video game' s development, serving as the visual foundation and creative ingenuity that engages players and shapes their gaming experience. Together with a reputable track record and a speciality in game art production, Mineloader&rsquo s team of more than 460 employees will be a valuable addition to our Group&rsquo s existing headcount of over 800, boosting our service offerings in this segment and adding new clients. Mineloader&rsquo s established experience and presence in the Japanese market is also a notable value add to our Group&rsquo s business networks.&rdquo
 
&ldquo Complementing Winking Studios&rsquo capabilities in online platform games, Mineloader&rsquo s strengths in console platform games can provide revenue diversity. There are also opportunities for increased business synergies and cross-selling, driving enhanced economies of scale and scalability.&rdquo
 
&ldquo Driven by our global ambitions, we will continue to proactively explore new M& A opportunities to enhance our value propositions across the value chain of the global gaming services industry, delivering cost-effective solutions for our Western and Asian gaming clients in different market segments.&rdquo
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WBdisciple
Master |
17-Jan-2025 16:07
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Action according to their plans, very nice...Following same M& A game plan  like the biggest player, Keywords, that got delisted last year for 2.2 BILLION POUNDS, where Temasek also was part of the buyers. Winking Studios: Proposed Acquisition of One of the Leading Game Art Outsourcing and Development Studios in Asia M& A Strategy Gains Momentum with the Group&rsquo s Largest M& A Transaction to date Winking Studios Limited (AIM / SGX:WKS) (the &ldquo Company&rdquo and together with its subsidiaries, the &ldquo Group&rdquo ), one of Asia' s largest AAA game art outsourcing studios and an established game development company, is pleased to announce the proposed conditional acquisition of Shanghai Mineloader Digital Technology Co., Ltd. (the &ldquo Target&rdquo , &ldquo Mineloader&rdquo or &ldquo 上 海 皿 鎏 數 字 科 技 有 限 公 司 &rdquo and together with its subsidiaries, the &ldquo Target Group&rdquo ), one of Asia&rsquo s leading game art outsourcing and development studios (the &ldquo Proposed Acquisition&rdquo ). Funded from the Company&rsquo s internal cash resources, the consideration payable for the acquisition is approximately RMB 146 million (or approximately S$27.2 million or £ 16.3 million), of which the upfront payment is approximately RMB131.4 million (or approximately S$24.5 million or £ 14.7 million), with the balance to be paid on the fifth anniversary following completion of the Proposed Acquisition subject to the satisfaction of certain conditions and performance targets.  - With its business roots tracing back to 2003 when the Target Group established its first studio, Mineloader is currently headquartered in Shanghai and has developed integrated capabilities across three major gaming platforms and expanded its workforce to 466 employees (as at 30 November 2024) across three studios in Asia - In its latest full audited period, Mineloader delivered EBITDA of approximately S$3.6 million for the financial year ended 31 December 2023 (&ldquo FY2023) - The majority of Mineloader&rsquo s revenue is generated from game art outsourcing services (an average of approximately 90% for FY2022 and FY2023) and its strength in console platform games can provide more revenue diversity for the Group - With a reputable track record within the global gaming services industry, Mineloader has established enduring working relationships with blue-chip gaming clients globally, gaining more traction in Western markets in recent years - Spearheaded by industry veterans with extensive past experience at renowned Japanese gaming companies, who will continue to lead the business of the Target Group while benefitting from the Group&rsquo s central resources and expertise - The Proposed Acquisition is expected to deliver increased scale across Asia, new Western clients, and increased resources to deliver on the Group&rsquo s global ambitions - Completion of the Proposed Acquisition is subject to certain conditions precedent, as detailed below, which are expected to be satisfied before the end of the second quarter of 2025 Accelerating Growth and Innovation with its M& A Strategy Since its listing on the Catalist of the Singapore Stock Exchange in November 2023 and as detailed in its AIM Admission Document in November 2024, the Group has embarked on an M& A strategy aimed at increasing its global presence through the acquisition of companies that align with its sales growth, capability enhancement, and global market expansion goals. The Proposed Acquisition follows the two acquisitions completed in 2024 of Taipei-based art outsourcing studio On Point Creative Co., Ltd. and Kuala Lumpur-based Pixelline Production Sdn. Bhd, which together significantly enhance the Group&rsquo s resource base, service offerings and market reach. Commenting on the Proposed Acquisition, Executive Director and Chief Executive Officer (Founder) of Winking Studios Limited, Mr Johnny Jan (詹 承 翰 ), commented: &ldquo This marks our largest acquisition to date and represents a pivotal step that augments our position in the global video games industry, unlocking new horizons for growth and innovation.&rdquo &ldquo Game art is essential in a video game' s development, serving as the visual foundation and creative ingenuity that engages players and shapes their gaming experience. Together with a reputable track record and a speciality in game art production, Mineloader&rsquo s team of more than 460 employees will be a valuable addition to our Group&rsquo s existing headcount of over 800, boosting our service offerings in this segment and adding new clients. Mineloader&rsquo s established experience and presence in the Japanese market is also a notable value add to our Group&rsquo s business networks.&rdquo &ldquo Complementing Winking Studios&rsquo capabilities in online platform games, Mineloader&rsquo s strengths in console platform games can provide revenue diversity. There are also opportunities for increased business synergies and cross-selling, driving enhanced economies of scale and scalability.&rdquo &ldquo Driven by our global ambitions, we will continue to proactively explore new M& A opportunities to enhance our value propositions across the value chain of the global gaming services industry, delivering cost-effective solutions for our Western and Asian gaming clients in different market segments.&rdquo |
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SmallSmall
Supreme |
17-Jan-2025 15:11
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17 January 2025 Proposed Acquisition of One of the Leading Game Art Outsourcing and Development Studios in Asia M& A Strategy Gains Momentum with the Group&rsquo s Largest M& A Transaction to date Winking Studios Limited (AIM / SGX:WKS) (the &ldquo Company&rdquo and together with its subsidiaries, the &ldquo Group&rdquo ), one of Asia' s largest AAA game art outsourcing studios and an established game development company, is pleased to announce the proposed conditional acquisition of Shanghai Mineloader Digital Technology Co., Ltd. (the &ldquo Target&rdquo , &ldquo Mineloader&rdquo or &ldquo 上 海 皿 鎏 數 字 科 技 有 限 公 司 &rdquo and together with its subsidiaries, the &ldquo Target Group&rdquo ), one of Asia&rsquo s leading game art outsourcing and development studios (the &ldquo Proposed Acquisition&rdquo ). Funded from the Company&rsquo s internal cash resources, the consideration payable for the acquisition is approximately RMB 146 million (or approximately S$27.2 million or £ 16.3 million), of which the upfront payment is approximately RMB131.4 million (or approximately S$24.5 million or £ 14.7 million), with the balance to be paid on the fifth anniversary following completion of the Proposed Acquisition subject to the satisfaction of certain conditions and performance targets. &bull With its business roots tracing back to 2003 when the Target Group established its first studio, Mineloader is currently headquartered in Shanghai and has developed integrated capabilities across three major gaming platforms and expanded its workforce to 466 employees (as at 30 November 2024) across three studios in Asia &bull In its latest full audited period, Mineloader delivered EBITDA of approximately S$3.6 million for the financial year ended 31 December 2023 (&ldquo FY2023&rdquo )1 &bull The majority of Mineloader&rsquo s revenue is generated from game art outsourcing services (an average of approximately 90% for FY2022 and FY2023) and its strength in console platform games can provide more revenue diversity for the Group &bull With a reputable track record within the global gaming services industry, Mineloader has established enduring working relationships with blue-chip gaming clients globally, gaining more traction in Western markets in recent years &bull Spearheaded by industry veterans with extensive past experience at renowned Japanese gaming companies, who will continue to lead the business of the Target Group while benefitting from the Group&rsquo s central resources and expertise &bull The Proposed Acquisition is expected to deliver increased scale across Asia, new Western clients, and increased resources to deliver on the Group&rsquo s global ambitions &bull Completion of the Proposed Acquisition is subject to certain conditions precedent, as detailed below, which are expected to be satisfied before the end of the second quarter of 2025 1 |
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ahberngh
Master |
17-Jan-2025 14:38
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Takeover?? Does not seem likely, just listed not too long ago. |
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Joelton
Supreme |
17-Jan-2025 10:53
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Winking Studios requests for trading halt, announcement pending
 
Catalist-listed Winking Studios has requested for a trading halt on Jan 16, and is &ldquo pending the release of announcement&rdquo . 
 
Winking Studios, which was listed on the Catalist of the Singapore Exchange (SGX) on Nov 20, 2023, most recently proceeded with a dual listing on the London Stock Exchange&rsquo s (LSE) Alternative Investment Market (AIM). 
 
On Nov 8, Winking Studios entered into a placing agreement with its nominated adviser, Strand Hanson, and broker, S.P. Angel Corporate Finance LLP. 
 
Under the agreement, S.P. Angel has procured subscribers for a total of 52,666,667 fully paid-up ordinary shares in Winking Studios at a placing price of 15 British pence or 26 cents, with the full consideration at GBP7.9 million or $13.5 million.
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Joelton
Supreme |
16-Jan-2025 09:49
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SAC Capital: Winking Studios - Riding the Wave of Global Gaming
 
Winking Studios Limited. Winking Studios is the third largest art outsourcing studio in Asia and the fourth largest in the world, The company provides a range of services including 2D and 3D modeling, game development, and animation, servicing renowned game developers such as Ubisoft, Tencent, and NetEase. With operations across Asia and a growing global footprint, Winking &lsquo s focus on high-quality digital art assets and development services positions it to benefit from the increasing demand for outsourced game art services.
 
Financial performance. In 1H2024, Winking reported revenue of US$15.2m, reflecting a 7.1% yoy growth. This was primarily driven by strong contributions from the Art Outsourcing and Game Development segments, with new contracts in Japan and South Korea. Gross profit decreased slightly by 2.8% yoy to US$4.2m, with gross profit margin decreasing from 30.7% to 27.9%. This was mainly impacted by the deferment of various projects to 2H2024 due to customers&rsquo requirements and the integration of newly acquired studios. Excluding these integration effects, gross margin remained stable at 30.0%. Net profit fell by 28.0% yoy to US$0.9m, impacted by increased marketing and promotional expenses, along with ongoing listing expenses. Adjusted for one-off expenses, the Group&rsquo s adjusted net profit stood at US$1.2m, a decrease of 34.1% yoy. As of 30 June 2024, Winking is in a net cash position of US$11.6m in cash and no borrowings, representing approximately 10% of its market capitalization.
 
Investment Thesis
1) Inorganic Growth. Beyond organic growth driven by Winking&rsquo s training and hiring efforts, acquisitions are a key growth driver. Since its IPO, the company has expanded geographically and boosted client capacity with the acquisitions of On Point Creative in Taiwan and Pixelline Production in Malaysia. In July 2024, the company raised S$26.5m through a placement, which will be allocated primarily for strategic acquisitions.
 
2) Dual Listing on London Stock Exchange. Winking&rsquo s dual listing on the LSE will provide Winking exposure to a broader investor base, further supporting Winking&rsquo s future growth plans. We anticipate acquisitions to follow.
 
3) Backing by Acer Group. Acer Group&rsquo s majority stake of 64.2% in Winking Studios not only strengthens Winking&rsquo s operational capabilities but also opens doors to Acer&rsquo s extensive network in the global gaming and art outsourcing industries. Leveraging Acer&rsquo s resources, Winking collaborates on innovative projects such as AI-driven 3D animation software and the conversion of classic titles for Acer&rsquo s True Game platform. This synergy positions Winking as a growth leader in the rapidly expanding gaming sector, enhancing its scalability and market penetration across developed and emerging markets
 
Market outlook.   According to an independent market report by China Insights Industry Consultancy Limited, the global gaming market is projected to grow at a compounded annual growth rate (CAGR) of 8.9%, reaching US$317.6b by 2027, driven by increasing popularity of online games, esports and immersive gaming experiences. The demand for outsourcing art services is projected to grow at a CAGR of 13.4%, reaching US$6.3b by 2027. As one of the largest game art outsourcing companies, Winking is well-positioned to capture this growth.
 
Risks. A significant portion of Winking&rsquo s revenue is denominated in various currencies, making the company vulnerable to exchange rate fluctuations, potentially impacting profitability. Additionally, the company&rsquo s aggressive acquisition strategy poses integration risks, particularly in maintaining operational efficiency and preserving profit margins during the initial stages of mergers.
 
Optimistic Outlook &ndash Winking&rsquo s Studios growth trajectory is supported by a robust acquisition pipeline, enhanced by funds raising through the recent placement and anticipated benefits from the dual listing.   With the company&rsquo s strong financial position and focus on expanding its global footprint, we are optimistic on the company.
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For_The_Next_Leg
Veteran |
15-Jan-2025 22:34
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Acer is releasing laptops that work specially with Genmotion.Ai. A game development tool created by Winking Studios. This will result in more adaptation of using Genmotion for games development in future.
 
https://www.fonearena.com/blog/434605/acer-project-dualplay-genmotion-ai-features.html#google_vignette
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tedlim
Veteran |
17-Dec-2024 08:23
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i understand that it is fungible (which means can be sold on LSE)..hence likley to be singapore prices catch up to LSE prices.. |
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WBdisciple
Master |
17-Dec-2024 07:47
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Winking Studios closed UP at 23 pence today, which is about 39 SGD cents (sgx side has 10 cents difference):  https://www.londonstockexchange.com/stock/WKS/winking-studios-limited/company-page |
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Joelton
Supreme |
16-Dec-2024 10:25
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MIDAS SHARE TIPS: Video game company Winking Studios has its sights set on a profit boom
 
 
When Keyword Studios floated on Aim in 2013, the business was valued at £ 49 million and shares were changing hands at £ 1.23 each. Two months ago, Keyword was acquired for £ 2.1 billion, equivalent to £ 24.50 a share.
 
Providing services for video games, from music and art production to translation into dozens of languages, Keyword grew 40-fold during its 11 years at Aim and shareholders were richly rewarded.
 
Winking Studios hopes to offer a similar shine. Based in Asia, Winking helps game companies with art production: developing ideas, creating characters, building 3D monsters and buildings, and ensuring visuals look fantastic. The company joined Aim last month at a price of 15p, the shares have risen to 18p and should continue in that vein as founder Johnny Jan expands and develops the business.
 
A gaming enthusiast since childhood, Jan, now 48, founded his first business in 1997 and gave rise to Winking Studios in 2004. The company has steadily grown sales and profits over the past two decades, working on the best games like Assassin&rsquo s Creed, FIFA, Call. Of Duty and Genshin Impact, one of the most popular mobile games in the world.
 
The producers of these titles are attracted to Winking for two reasons. First, the quality of your artwork and second, the prices charged relative to competitors.
 
Headquartered in Singapore with offices in Taiwan, Malaysia and China, the company employs more than 800 people. Most are highly educated, but earn much lower salaries than their Western counterparts. That means Jan can offer artwork services at prices two to three times lower than European or American operators, an increasingly attractive proposition as gaming companies try to reduce costs.
 
Video games are a huge industry, valued at almost £ 200bn, around twice the size of the film and music sectors combined. Although once limited primarily to teenagers, they are now enjoyed by young and old, men and women.
 
Demographics are not the only change affecting this industry. In the past, enthusiasts would buy a game, throw it into their computer or console, and play until they were bored. Today, games are downloaded electronically and producers provide regular updates, creating a constant flow of work for Winking Studios, with almost half of the group&rsquo s revenue generated by existing titles.
 
Winking also specializes in mobile phone games, the fastest growing market segment.
 
Mobile revenues, which already account for more than a quarter of all sales, are expected to generate annual growth of ten percent or more between now and 2028.
 
Outsourcing is another major trend in this business, where game publishers use outside specialists to reduce costs and gain a competitive advantage.
 
Jan is very ambitious. Revenue is expected to rise around 15 per cent to $38m (around £ 30m) between now and 2026, while profits are forecast to soar from $700,000 to almost $4m, and more will follow in later years. It is also willing to pay dividends, starting with 1 percent next year but increasing steadily as the business grows.
 
Like Keyword, acquisitions will play a key role in Winking&rsquo s development and here Jan has an ace up his sleeve: Taiwanese computer giant Acer. Eager to expand into the entertainment market, the multibillion-dollar company acquired a major stake in Winking two years ago and now owns 62 percent of it. Although this leaves fewer shares for other investors, Acer has deep pockets and is willing to back Jan&rsquo s growth strategy with cash.
 
Two acquisitions have been completed over the past year and several more are likely to follow, expanding Winking&rsquo s customer base and range of services. Jan is also developing an AI kit to speed up delivery and further reduce costs.
 
Midas Verdict: Winking may be based in Asia, but Jan decided to list on Aim because he wants to expand into Western markets. The UK is also home to some of the most talented people in the sector, making London a natural choice for this fast-growing company. At 18p, the stock is a buy.
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For_The_Next_Leg
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12-Dec-2024 10:39
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I don' t know if you' ve noticed, but games often come in series and remain part of a franchise. This increases the likelihood that the same art outsourcing company will be involved, especially if there haven' t been any complaints. Just look at the Assassin' s Creed franchise as an example. This becomes a recurring revenue stream for them.
 
https://assassinscreed.fandom.com/wiki/Assassin%27s_Creed_(series)
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For_The_Next_Leg
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11-Dec-2024 09:35
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An additional thought - this AI tool may bring in other revenue from other studios - an additional revenue stream!!
 
https://links.sgx.com/1.0.0/corporate-announcements/8RZLUQ0SV39KOGQF/444cbbe1e241b5225aada9c2e74c694deafedfbd618b3a7bccf69be51816db16
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For_The_Next_Leg
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06-Dec-2024 09:46
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AI development tool - As I always say, AI is an assistance to the studios. AI will help Winking Studios. In fact, there is a likelihood it will assist them in new revenue leading to more earnings!
 
https://links.sgx.com/1.0.0/corporate-announcements/8RZLUQ0SV39KOGQF/444cbbe1e241b5225aada9c2e74c694deafedfbd618b3a7bccf69be51816db16
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For_The_Next_Leg
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03-Dec-2024 22:04
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Is there a possibility of an arbitrage opportunity?
 
https://www.londonstockexchange.com/discover/news-and-insights/london-stock-exchange-welcomes-winking-studios-aim-market
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For_The_Next_Leg
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29-Nov-2024 10:15
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Interesting new investor for the company.
 
https://www.chaincatcher.com/en/article/2152210
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