Equity Analysis /
Thailand

YGGDRAZIL Group PCL: Growth and value can walk hand in hand

  • 2023 is looking brighter for the video game industry…

  • …with new titles to be launched every quarter

  • Defensive business models trading at trough multiples

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
20 December 2022

While 2022 has been a challenging year for YGG, we see 2023 primed to be a favorable year as it pushes out a larger slate of new titles in every quarter—at least three games with a metaverse project (Grandora). Valuations at a 2-year low further supports our positive outlook.

2023 is looking brighter for the video game industry

A high base from shelter-at-home, post-COVID reopening and delays to key titles have all resulted in 2022 being a tough year for global gaming industry and YGG. That said, we see 2023 shaping up to be an inflection year, led by a robust game pipeline. 2022 saw multiple flagship titles being delayed as a result of development issues, content modifications, and decisions to wait for the better environment. With progress on some of these issues, the content slate looks much richer for 2023.