Huya (HUYA) AI Stock Analysis

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Huya

(NYSE:HUYA)

Rating:54Neutral

Price Target:

$2.50

▲(0.40%Upside)

Huya's overall stock score reflects significant financial challenges, particularly in revenue and cash flow, which weigh heavily on its outlook. Positive earnings call developments in game services and AI integration slightly offset these concerns, as do stable technical indicators and valuation metrics. However, the negative P/E ratio and declining core revenues remain critical risk factors.

Positive Factors

Game-related services revenue

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

Shareholder returns

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

Negative Factors

Live-streaming revenue challenges

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

Seasonality and game launches

Huya is likely to experience weaker seasonality with fewer game launches affecting revenue.

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

Market Cap

$543.13M

Dividend Yield119.03%

Average Volume (3M)2.07M

Price to Earnings (P/E)―

Beta (1Y)0.59

Revenue Growth-7.15%

EPS Growth22.29%

CountryUS

Employees1,251

SectorCommunication Services

Sector Strength83

IndustryEntertainment

Share Statistics

EPS (TTM)0.04

Shares Outstanding73,123,190

10 Day Avg. Volume3,115,423

30 Day Avg. Volume2,074,895

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.61

Price to Sales (P/S)0.00

P/FCF Ratio-1.59

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.40

Price Target Upside76.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Huya Business Overview & Revenue Model

Company DescriptionHuya Inc. is a leading game live streaming platform in China. It operates in the internet content and information sector, offering a vibrant and interactive platform where users can watch and broadcast live gaming content. The company's core services include live streaming of e-sports events, video game content, and other entertainment-related broadcasts, providing a venue for gamers to connect, share, and enjoy interactive experiences.

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 Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: 14.22%|

Next Earnings Date:Aug 19, 2025

Earnings Call Sentiment Neutral

The earnings call presented mixed results, with strong growth in game-related services and promising AI and overseas expansion initiatives offset by declines in live streaming and advertising revenues, alongside reduced gross margins and interest income.

Q1-2025 Updates

Positive Updates

Game-Related Services Revenue Growth

Game-related services, advertising, and other revenues increased by 52.1% year-over-year to RMB 370 million, accounting for 24.6% of total net revenues compared to 16.2% in the same period last year.

Increased Game Distribution and In-Game Sales

Gross proceeds from game distribution more than doubled year-over-year. In-game item sales reached a record GMV, benefiting from expanded SKU offerings and improved purchasing experiences.

AI Integration in E-Sports

Introduced AI solution 'Hu Xiaoyi' for e-sports viewing, enhancing user engagement with over 300,000 bullet chats generated, and 17% related to AI interactions.

Positive Net Income Achieved

Despite a challenging economic environment, HUYA achieved a positive non-GAAP net income of RMB 24 million for the quarter.

Overseas Market Expansion

Overseas game-related services delivered multi-fold sequential revenue growth, with promising initiatives in game distribution and advertising services.

Negative Updates

Decline in Live Streaming Revenue

Live streaming revenues decreased to RMB 1.14 billion from RMB 1.26 billion year-over-year, impacted by macroeconomic and industry conditions.

Advertising Revenue Decline

Advertising revenue decreased due to fewer tournaments and promotions, as well as a high base from last year.

Decreased Gross Margin

Gross margin decreased to 12.5% from 14.7% year-over-year, primarily due to increased revenue-sharing fees and content costs.

Lower Interest Income

Interest income dropped significantly from RMB 117 million to RMB 65 million year-over-year, primarily due to dividend payments.

Company Guidance

During HUYA's Q1 2025 earnings call, the company reported total net revenues of RMB 1.51 billion, reflecting a year-over-year stabilization and quarter-over-quarter growth. Game-related services, advertising, and other revenues saw a significant 52.1% year-over-year increase to RMB 370 million, accounting for 24.6% of total net revenues, up from 16.2% the previous year. The company achieved a positive net income, with a non-GAAP net income of RMB 24 million. The gross margin was reported at 12.5%, with a non-GAAP gross margin of 12.7%. HUYA's live streaming revenues experienced a slight sequential increase, while the number of paying users remained flat at 4.4 million. Cost optimization, particularly in e-sports content, was highlighted, though increased incentives for broadcasters were noted. Despite a decline in advertising revenues, HUYA emphasized its strategic focus on enhancing its game content, expanding international commercialization, and integrating AI capabilities in its services, aiming for sustained revenue growth and operational improvements throughout the year.

Huya Financial Statement Overview

Summary

HUYA's financial performance is under pressure with declining revenues and persistent losses. While the balance sheet is relatively robust with low leverage, negative cash flows and challenges in operational efficiency are significant concerns.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	-88.45M	-303.19M	-592.63M	94.84M	724.96M
Net Income	-47.95M	-204.52M	-486.14M	204.29M	884.16M
Balance Sheet
Total Assets	9.57B	12.92B	13.79B	13.25B	12.41B
Cash, Cash Equivalents and Short-Term Investments	5.26B	7.36B	9.72B	10.96B	10.47B
Total Debt	48.63M	79.90M	38.42M	81.56M	86.85M
Total Liabilities	2.02B	2.30B	2.38B	2.74B	2.63B
Stockholders Equity	7.55B	10.62B	11.41B	10.51B	9.78B
Cash Flow
Free Cash Flow	-116.22M	-163.37M	-4.12B	229.39M	811.66M
Operating Cash Flow	94.28M	-32.08M	-3.00B	327.45M	1.24B
Investing Cash Flow	3.68B	53.21M	-5.81B	-1.88B	1.00B
Financing Cash Flow	-3.10B	-202.29M	41.45M	10.72M	265.29M

Huya Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.49

Price Trends

50DMA

2.26

Positive

100DMA

2.20

Positive

200DMA

2.13

Positive

Market Momentum

MACD

0.05

Negative

RSI

62.89

Neutral

STOCH

16.12

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUYA, the sentiment is Positive. The current price of 2.49 is above the 20-day moving average (MA) of 2.32, above the 50-day MA of 2.26, and above the 200-day MA of 2.13, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 16.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQ	60 Neutral	$1.70B	43.68	2.21%	―	-10.05%	-85.30%
LVO	58 Neutral	$73.69M	―	154.70%	―	11.43%	26.78%
Sector *	55 Neutral	HK$64.85B	-1.97	-3.61%	7.11%	-4.24%	-17.51%
HUYA	54 Neutral	$543.13M	―	-1.62%	119.03%	-7.15%	22.29%
DLPN	52 Neutral	$15.08M	―	-98.74%	―	0.31%	27.47%
HOFV	43 Neutral	$5.68M	―	-65.28%	―	-20.80%	19.16%
AGAE	42 Neutral	$68.83M	―	-26.23%	―	1.52%	-439.93%

* Communication Services Sector Average

Performance Comparison

HUYA

Huya

2.49

0.23

10.18%

AGAE

Allied Gaming & Entertainment

1.72

0.20

13.16%

LVO

LiveOne

0.80

-0.54

-40.30%

DLPN

Dolphin Entertainment

1.28

-0.16

-11.11%

Iqiyi

1.82

-2.10

-53.57%

HOFV

Hall of Fame Resort & Entertainment

0.85

-1.99

-70.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025