Investment Thesis
Gravity Co. Ltd. (NASDAQ:GRVY) trades at EV/EBIT 4,0x and 2,4x for 2019E and 2020E, which is significantly below peers (12,8x/10,7x). ROMs recent success in Southeast Asia and North America/South America/Oceania solidifies the global power of the Ragnarok IP. We believe the upcoming launch of ROM in Japan and LaFS in China, with respective local giants Gungho Online Entertainment (JP:3765) and Tencent (HK:0700) as publishers, to accelerate revenue growth in 2019 and 2020. We expect long-term growth to be supported by IP expansion, through entering into new genres, verticals and