Elevator Pitch
Hong Kong-listed game developer NetDragon Websoft Holdings (NDWTY) [777:HK] is a leading game developer which delivered a strong +51.6% and +85.4% YoY growth in revenue and profit, respectively, for its gaming business in 1H2019. Notwithstanding the excellent performance of its gaming business, my sum-of-the-parts valuation of HK$25.10 for NetDragon suggests the stock is undervalued, and there is a 38% upside to its share price of HK$18.16 as of October 10, 2019.
A robust new games pipeline, including the hugely anticipated Eudemons II, the mobile version of the company's flagship PC game Eudemons Online,