Huya (HUYA) AI Stock Analysis

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Huya

(NYSE:HUYA)

47Neutral

Huya's overall stock score reflects a challenging financial performance, with declining revenues and losses weighing heavily. Technical indicators suggest a bearish trend, while valuation metrics are unattractive due to ongoing losses. However, the earnings call provided some optimism with growth in non-live streaming revenues and profitability improvements, which slightly offset the negatives.

Positive Factors

Game Services Growth

Huya reported stronger growth of game-related services, with a significant increase in revenue.

New Business Growth

New game ad and game operations businesses see faster growth that can help to offset certain impact from the weaker streaming business.

Shareholder Returns

Huya offered attractive shareholder return in YTD 2024 with two special cash dividends and a repurchase plan.

Negative Factors

Regulatory and Market Competition

Potential mergers face challenges due to previous regulatory rejections and ongoing market competition.

Revenue Decline

The trend of declining average revenue per paying user has intensified, impacting overall revenue.

Streaming Revenue Challenges

Live-streaming revenues are impacted by continued macro and industry challenges.

Huya (HUYA) vs. S&P 500 (SPY)

Market Cap

$688.82M

Dividend YieldN/A

Average Volume (3M)3.01M

Price to Earnings (P/E)―

Beta (1Y)0.91

Revenue Growth-20.51%

EPS Growth67.41%

CountryUS

Employees1,345

SectorCommunication Services

Sector Strength98

IndustryEntertainment

Share Statistics

EPS (TTM)-0.08

Shares Outstanding74,845,400

10 Day Avg. Volume2,809,987

30 Day Avg. Volume3,014,749

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.77

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.33

Price Target Upside41.04% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Huya Business Overview & Revenue Model

Company DescriptionHUYA Inc., through its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, online theatre, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, software development, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.

How the Company Makes MoneyHuya makes money primarily through a revenue model that includes live streaming services, advertising, and partnerships. The company generates significant earnings from virtual gifting, where viewers purchase virtual items to give to streamers as a form of support and interaction. Additionally, Huya earns revenue through advertising, leveraging its large audience base to attract advertisers seeking to reach a young and engaged demographic. Furthermore, Huya forms strategic partnerships with e-sports leagues and game developers, enhancing its content offerings and revenue potential.

Huya Financial Statement Overview

Summary

Huya's financial health is under pressure, with declining revenues and persistent losses. The balance sheet is relatively robust with low leverage, but negative cash flows suggest challenges in operational efficiency and revenue generation.

Income Statement

Negative

Huya's income statement shows declining revenues and profitability over recent years. The revenue in 2024 was significantly lower compared to previous years, indicating a downward trend. Additionally, the company has been operating at a net loss since 2022, with a negative EBIT and EBITDA, highlighting struggles in operational efficiency and cost management.

Balance Sheet

Positive

Huya's balance sheet remains relatively strong despite income challenges. The company has maintained a high equity ratio, suggesting a solid capital structure with low reliance on debt, as indicated by a low debt-to-equity ratio. However, the declining stockholders' equity over the years is a concern that needs monitoring.

Cash Flow

Negative

Huya's cash flow statement indicates potential liquidity issues, with negative operating and free cash flows in recent years. The inability to generate positive free cash flow consistently suggests challenges in managing cash effectively, which could impact future investments and financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
6.08B	6.99B	9.22B	11.35B	10.91B
	Gross Profit
809.45M	815.20M	610.87M	1.60B	2.27B
	EBIT
-189.58M	-443.59M	-706.47M	-30.17M	724.96M
	EBITDA
-88.45M	-303.19M	-592.63M	94.84M	724.96M
	Net Income Common Stockholders
-47.95M	-204.52M	-486.14M	204.29M	884.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.26B	7.36B	9.68B	10.96B	10.47B
	Total Assets
9.57B	12.92B	13.15B	13.25B	12.41B
	Total Debt
48.63M	79.90M	38.42M	81.56M	86.85M
	Net Debt
-1.14B	-432.07M	-616.82M	-1.71B	-3.21B
	Total Liabilities
2.02B	2.30B	2.30B	2.74B	2.63B
	Stockholders Equity
7.55B	10.62B	10.84B	10.51B	9.78B
Cash Flow		Free Cash Flow
0.00	-163.37M	-4.12B	229.39M	811.66M
	Operating Cash Flow
0.00	-32.08M	-3.00B	327.45M	1.24B
	Investing Cash Flow
0.00	53.21M	-5.81B	-1.88B	1.00B
	Financing Cash Flow
0.00	-202.29M	41.45M	10.72M	265.29M

Huya Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.07

Price Trends

50DMA

3.67

Negative

100DMA

3.41

Negative

200DMA

3.49

Negative

Market Momentum

MACD

-0.16

Positive

RSI

41.37

Neutral

STOCH

22.74

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUYA, the sentiment is Negative. The current price of 3.07 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.67, and below the 200-day MA of 3.49, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.37 is Neutral, neither overbought nor oversold. The STOCH value of 22.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUYA.

Huya Risk Analysis

Huya disclosed 95 risk factors in its most recent earnings report. Huya reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Huya Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQ	59 Neutral	$1.66B	15.55	6.01%	―	-9.84%	-61.26%
Sector *	58 Neutral	$26.94B	3.15	-10.67%	4.32%	2.14%	-43.11%
LVO	55 Neutral	$66.27M	―	154.70%	―	11.43%	26.78%
AGAE	49 Neutral	$41.90M	―	-13.48%	―	36.15%	-144.64%
HUYA	47 Neutral	$688.82M	―	-1.59%	―	-20.51%	67.41%
DLPN	45 Neutral	$11.17M	―	-79.76%	―	19.85%	41.89%
HOFV	26 Underperform	$5.61M	―	-55.61%	―	-12.12%	27.21%

* Communication Services Sector Average

Performance Comparison

HUYA

Huya

3.07

-0.32

-9.44%

AGAE

Allied Gaming & Entertainment

0.88

-0.04

-4.35%

LVO

LiveOne

0.68

-1.15

-62.84%

DLPN

Dolphin Entertainment

1.00

-1.44

-59.02%

Iqiyi

1.67

-2.73

-62.05%

HOFV

Hall of Fame Resort & Entertainment

0.80

-2.60

-76.47%

Huya Earnings Call Summary

Earnings Call Date: Mar 18, 2025 | % Change Since: -32.38% | Next Earnings Date: May 20, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant growth in non-live streaming revenue and improved profitability, driven by strategic transformations and AI integration. However, challenges remain with declining live streaming revenues and impairment losses on investments. The positive developments in game distribution and e-sports tournaments provide a strong foundation for future growth.

Highlights

Significant Growth in Non-Live Streaming Revenue

Revenues from game-related services, advertising, and other segments increased by 145.4% year-over-year to RMB1.33 billion for the full year, accounting for 21.9% of total net revenues, up from 7.8% in the previous year.

Improved Profitability

Non-GAAP net income reached RMB269 million, up by 125.6% year-over-year, with net cash provided by operating activities turning positive at RMB94 million.

Expansion in Game Distribution

HUYA platform emerged as one of the primary distribution channels for several games, with collaborations with more game developers and publishers on distribution and joint operations.

Successful In-House E-Sports Tournaments

The LOL Legend Cup Season 2 doubled its sponsorship revenue compared to its inaugural event, attracting a wider range of well-known sponsors.

AI Integration and Technology Advancements

Implemented AI technologies like DeepSeek-R1 model and AI-powered streamer assistant to enhance live streaming content and user services.

Lowlights

Decline in Live Streaming Revenues

Live streaming revenues were RMB4.75 billion for 2024, compared with RMB6.45 billion for the prior year, affected by macroeconomic and industry environment challenges.

Gross Margin Pressure

Despite improvements, gross margin faced pressure due to the seasonal nature of major e-sports events scheduling and related cost allocation.

Impairment Loss on Investments

Impairment loss of investments was RMB151 million for Q4, recognized due to the weak financial performance of certain investees.

Company Guidance

In HUYA's Fourth Quarter and Fiscal Year 2024 Earnings Webinar, the company reported significant growth in certain segments despite external challenges. Revenues from game-related services, advertising, and other segments surged by 145.4% year-over-year, reaching RMB1.33 billion, which constituted 21.9% of the total net revenues of RMB6.08 billion for the year. The company's non-GAAP net income climbed by 125.6% to RMB269 million, with net cash from operating activities turning positive at RMB94 million. The fourth quarter saw a 99.4% year-over-year increase in revenues from game-related services, advertising, and others, totaling RMB372 million, despite a sequential decline due to game industry seasonality. The company also achieved a gross margin of 11.4% in Q4, up from 1% in the same period last year, and recorded a non-GAAP net income of RMB1.2 million for the quarter, marking a turnaround from the previous year's loss. HUYA announced a 2025-2027 dividend plan to distribute at least $400 million over three years, with a special 2025 cash dividend of $1.47 per ADS.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.