Introduction
We will continue to initiate our coverage on the Chinese software market with another game live streaming platform provider. DouYu (DOYU) has a similar business model like Huya (HUYA), as it produces a vast amount of high-quality live streaming content and generates revenues through sales of virtual items. DouYu share price is currently down approximately 21% YTD and is trading at $8.83 per ADS.
We believe that the company is undervalued due to negative sentiment triggered by the ongoing U.S.-China trade dispute. Furthermore, we believe that market participants are not