Company Update: 5 May 2026
Scaling delivery, expanding West
- FY25 scale-up driven by Mineloader and organic recovery. Winking Studios’ FY25 revenue rose 42.6% YoY to US$45.5mn, supported by Mineloader’s US$11.4mn contribution and a rebound in organic momentum in 2H25. Gross profit increased 43.2% YoY to US$13.5mn, while gross margin remained stable at 29.8%.
FY25 Financials Review
FY25 revenue rose 42.6% YoY to US$45.5mn, driven by Mineloader (US$11.4mn over 9 months) and organic recovery in 2H25. Gross margin held stable at 29.8%; Adjusted EBITDA rose 13.2% to US$5.4mn. Reported net profit of US$0.3mn. Final dividend maintained at SG$0.024 cents per share.
PC and Console Recovery Supports Mid-Term Outsourcing Demand
The PC and console market is entering a new expansion phase after the post-2020 slowdown, with Newzoo forecasting global PC and console software revenue to rise from US$82.4bn in 2025F to US$103.7bn by 2028F. Growth is expected to be led by PC and console revenue CAGRs of 6.6% and 4.4% respectively over 2025-2028F, supported by premium releases, higher production values and rising visual complexity. Together with BCG’s view that the broader gaming market is recovering, with industry revenue projected to reach US$350bn by 2030 and 55% of surveyed gamers reporting increased playtime, this reinforces demand for scaled art-outsourcing partners. Winking’s strengthened AAA capabilities, Vertic Studios launch and North American expansion through Ampera position the Group to capture this recovery.
Valuation & Action
We maintain an OUTPERFORM rating with a revised target price of S$0.304, based on a DCF valuation with a terminal growth rate of 2.0% and a cost of equity of 7.21%. This represents 32.1% upside from the current share price of S$0.23. The revised target price reflects the updated operating assumptions following FY25 results and an enlarged diluted share base after incorporating the additional 10.0mn Ampera consideration shares. The separate up-to-35.0mn Ampera incentive share arrangement is excluded from our base-case share count as issuance remains contingent on long-term adjusted EBITDA and VWAP performance targets.
Risks
Exposure to USD/SGD exchange rate fluctuations, integration challenges from acquisitions, margin pressure from price-sensitive customers, slower-than-expected conversion of indicative bookings, and potential future share dilution from performance-linked share issuances.
