Risk factor
High price volatility
Profitability factor
Undervalued vs peers
About
NetDragon Websoft Holdings Limited functions as an investment umbrella, with its core business centered on the development and operation of online and mobile games across a global footprint, including China, the United States, and the United Kingdom. The company's multifaceted operations encompass game design, programming, and graphics, alongside managing its gaming platforms. Expanding beyond entertainment, NetDragon also delves into online education with related applications, as well as offering mobile solutions, products, and marketing expertise. Its extensive game library features popular titles for children like JumpStart, School of Dragons, Neopets, World of Madagascar, and Math Blaster. For a more general audience, its portfolio includes Eudemons Online, Conquer Online, Way of the Five, and Adventure Navigation. Complementing these ventures, the company licenses and services its self-developed games, advances technology in augmented reality and computer vision through machine learning, and markets educational hardware and software. Additionally, NetDragon participates in property development. Originally founded in 1999 as NetDragon Websoft Inc., the company adopted its current name, NetDragon Websoft Holdings Limited, in June 2016 and maintains its headquarters in Fuzhou, China.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITDA
Target Price
The average target price of 0777.HK is 12.1 and suggests 52.2% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i