SINGAPORE-LISTED company Winking Studios, which provides services to gaming giants such as Ubisoft and Tencent, is poised for further, global growth, according to SAC Research.
The game art outsourcing and game development studio is listed in both Singapore and London, the research firm noted. That firmly puts it in position to tap a broader investor base that further supports its future growth plans, it said, adding that it expects acquisitions to follow.
On Wednesday (Jan 15), SAC said: “Winking Studios’ growth trajectory is supported by a robust acquisition pipeline, enhanced by funds raised through the recent placement and anticipated benefits from the dual listing.”
“With the company’s strong financial position and focus on expanding its global footprint, we are optimistic on the company,” it added.
Winking, a Singapore-headquartered company, provides services including 2D and 3D modelling, game development, and animation. It counts among its customers 22 of the top 25 game publishers globally, the company said.
Acquisitions are a key growth driver for Winking, said SAC. Since its initial public offering (IPO) in November 2023, the company has expanded globally and made acquisitions that included On Point Creative in Taiwan and Pixelline Production in Malaysia, noted SAC.
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Its shares are up about 55 per cent from its IPO price of S$0.20, based on Tuesday’s closing price.
Winking has also raised $26.5 million through a placement in July 2024, which will be allocated mainly for acquisitions, SAC said. Indeed, Winking itself has said that its global plans focus on a “proactive” mergers and acquisitions strategy.
SAC Research noted that Winking’s revenue growth in the first half of 2024 was primarily driven by strong contributions from its art outsourcing and game development segments, as it landed new contracts in Japan and South Korea.
The company had reported revenue that jumped 7.1 year on year to US$15.2 million in the first half of the year. Winking has a net cash position of US$11.6 million and no debt, SAC noted.
PC giant Acer has a majority stake of 64.2 per cent in it and is a key driver. It “opens doors” to Acer’s “extensive network” in the global gaming and art outsourcing industries, said SAC.
“With operations across Asia and a growing global footprint, Winking’s focus on high-quality digital art assets and development services positions it to benefit from the increasing demand for outsourced game art services,” said SAC.
