CROSBY Research – IGG (799 HK/BUY): Maintained growth momentum by Doomsday and Viking Rise

29 Apr 2024

Doomsday’s strong growth momentum persisted into 1Q24 with Average Monthly Gross Billing (MGB) reached HK$100M in March, while MGB of Doomsday reported HK$78M over 2H23. Management reiterated the target DAU for Doomsday will be 1.0mn in FY24. Before reaching the DAU target, the company will devote a significant portion of Doomsday’s profit on marketing and user acquisitions. For Viking Rise (VR), MGB in 1Q24 was at ~HK$50M, while VR’s MGB reached HK$52M in 2H23. Management scheduled promotion period for VR to be in 2H24, while promotion for Doomsday will be mainly in 1H24. We forecast Doomsday and VR’s MGB to reach HK$93m/ HK$55m respectively in FY24 and become the major growth drivers for IGG.