NetDragon mainly engaged in gaming and education. The group announced its interim
results, where the gaming business performed brilliantly, with segment profit increased
by 85.4% YoY. Besides, the new game “Vow of Heroes” will be launched in the seconed
half of 2019. In the future, the Group will try to monetize its education business in order
to become profit-making. We adopted sum of the parts valuation, deriving a TP of HKD
29.75, and reiterate a “Buy” rating with a potential return of approximately 58.1%.
(Closing price at 10 Sep 2019)