Ctrl Group Limited: Overvalued IPO Despite Strong Mobile Game Marketing Prospects

Summary

• Ctrl Group offers specialized, integrated marketing solutions for mobile games in Hong Kong. But they intend to expand into the Taiwan and Southeast Asia markets.
• Currently, MCTR has strong recurring customer relationships, with a 76.1% revenue retention rate.
• Also, MCTR does target a large combined mobile-game TAM of approximately $2.5 billion, offering considerable long-term growth potential.
• Unfortunately, I believe MCTR's IPO valuation multiples are excessively high.
• And when you add macroeconomic headwinds from the US-China trade war, it does tilt MCTR’s risk-reward equation into bearish territory.

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Ctrl Group Limited (NASDAQ:MCTR) is a Hong Kong–based, pure-play marketer of mobile games. Essentially, they provide integrated digital, outdoor, and influencer marketing in Hong Kong, but they aim to expand into Taiwan, Malaysia, Singapore, and Thailand through its subsidiary, CTRL Media Limited. Since 2014, CTRL Media

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