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QuestionsCategory: MiscellaneousWhat do you think of IGG (HKEX: 00799)?
Raymond Lee asked 4 years ago

This is a mobile game company that seems to have a good track record since it was listed in 2013. I like that this is an asset light business with a huge cash pile. The management seem to be treating the shareholders fairly with growing dividends and doing share buybacks. The revenue of the business seems to be well diversified geographically. The only con I see is that only one game “Lords Mobile” seem to be contributing bulk of the revenue. I also feel that this business is in a industry with lots of tailwind and potential with people switching from console/pc gaming to mobile gaming.

Raymond Lee replied 4 years ago

Are there any potential risks do you think I failed to consider?

1 Answers
Best Answer
Victor Chng answered 4 years ago

Hi Raymond,
The issue with game company is that the player may be bored of the game after sometime. Hence, the game itself have a shelf life. Having a single game accounting major bulk of the revenue is quite a risk for me.

Raymond Lee replied 4 years ago

Wow haha thanks Victor for the prompt reply

Victor Chng replied 4 years ago

You are welcome :)