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Huya (HUYA)
NYSE:HUYA
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Huya
(NYSE:HUYA)
Rating:65Neutral
Price Target:
$3.50
▲(1.74% Upside)
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
$768.87M
Dividend Yield74.13%
Average Volume (3M)3.08M
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-7.15%
EPS Growth22.29%
CountryUS
Employees1,251
SectorCommunication Services
Sector Strength85
IndustryEntertainment
Share Statistics
EPS (TTM)0.04
Shares Outstanding73,123,190
10 Day Avg. Volume3,315,554
30 Day Avg. Volume3,077,513
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.03
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda-0.30
Forecast
1Y Price Target
$4.80Price Target Upside39.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Huya Business Overview & Revenue Model
Company DescriptionHuya Inc. (HUYA) is a leading game live streaming platform in China, offering a wide array of interactive entertainment services. The company primarily operates within the digital entertainment sector, focusing on live streaming of video games, esports, and other forms of interactive content. Huya provides a platform where game enthusiasts can watch and interact with live broadcasts of popular games and competitions, engaging with content creators and other viewers.
How the Company Makes MoneyHuya generates revenue primarily through a combination of live streaming services and value-added services. The company's main revenue stream is through the sale of virtual items, which users purchase to show support for their favorite broadcasters and enhance their own viewing experience. Additionally, Huya earns income from advertising, where brands place ads on the platform to reach the large audience base. Significant partnerships with gaming companies and esports organizations also contribute to its revenue, as these collaborations often involve exclusive content deals and co-hosted events that attract more users to the platform.
Huya Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 57.80%|
Next Earnings Date:Aug 12, 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 significant pressure, with declining revenues and persistent losses. The income statement and cash flow indicate challenges in operational efficiency and liquidity, despite a relatively strong balance sheet with low leverage.Income Statement
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.35
Negative
Balance Sheet
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.70
Positive
Cash Flow
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.30
Negative
| 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
Positive
3.44
Price Trends
2.67
Positive
2.38
Positive
2.20
Positive
Market Momentum
0.28
Positive
64.12
Neutral
31.75
Neutral
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 3.44 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 2.67, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $768.87M | ― | -1.62% | 74.13% | -7.15% | 22.29% | |
64 Neutral | $1.75B | 43.44 | 2.21% | ― | -10.05% | -85.30% | |
61 Neutral | $41.44B | -3.01 | -10.30% | 3.97% | 2.71% | -44.19% | |
48 Neutral | $74.68M | ― | 154.70% | ― | -3.41% | -18.54% | |
45 Neutral | $60.26M | ― | -26.23% | ― | 1.52% | -439.93% | |
43 Neutral | $12.51M | ― | -98.74% | ― | 0.31% | 27.47% | |
41 Neutral | $5.53M | ― | -65.28% | ― | -20.80% | 19.16% |
* Communication Services Sector Average
Performance Comparison
HUYA
Huya
3.52
1.52
76.00%
AGAE
Allied Gaming & Entertainment
1.55
0.28
22.05%
LVO
LiveOne
0.65
-0.86
-56.95%
DLPN
Dolphin Entertainment
1.10
-0.55
-33.33%
IQ
Iqiyi
1.84
-1.35
-42.32%
HOFV
Hall of Fame Resort & Entertainment
0.83
-1.51
-64.53%
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.