CMGE Technology Group Ltd
00302: XHKG (HKG)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| HKD 8.60 | Hsysl | Vvjvnlzrb |
CMGE Earnings: Cutting Fair Value by 14% as Quality Takes Over Marketing in Gaming Market
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CMGE’s 2023 results were materially below our expectations, and we are cutting our fair value estimate by 14% to HKD 2.40 per share. The latest reduction in valuation reflects our more pessimistic view of revenue from the company’s upcoming game pipeline. While we still view CMGE’s shares as undervalued, there remains a lack of visibility around CMGE’s long-term launch pipeline. Therefore, our preferred picks in the Chinese video game space remain NetEase and Tencent.