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Huya (HUYA)
NYSE:HUYA
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Huya
(NYSE:HUYA)
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Rating:63Neutral
Price Target:
$3.50
▲(6.71% Upside)
Huya's overall stock score reflects a mix of financial challenges and positive technical and strategic developments. The company's strong technical indicators and positive earnings call, highlighting growth in game-related services and AI initiatives, are significant positives. However, financial performance concerns, particularly in revenue and cash flow, weigh on the overall score.
Positive Factors
Strategic Partnerships
This partnership signifies Huya's strategic entry into the game publishing arena, enhancing its integration into the gaming ecosystem and potentially driving long-term revenue growth.
AI and Technology Investment
Investments in AI and technology can enhance user engagement and operational efficiency, creating new consumption opportunities and strengthening competitive advantages.
Game-Related Services Growth
Significant growth in game-related services indicates successful diversification of revenue streams, reducing reliance on live streaming and enhancing financial stability.
Negative Factors
Declining Live Streaming Revenues
A decline in live streaming revenues suggests challenges in maintaining user engagement and monetization in the core business, impacting overall revenue growth.
Cash Flow Challenges
Consistently negative cash flows indicate difficulties in managing cash effectively, which could limit future investments and financial flexibility, affecting long-term growth.
Declining Revenue and Profitability
Declining revenue and profitability reflect operational challenges and cost management issues, potentially undermining the company's ability to sustain growth and profitability.
Huya (HUYA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$729.32M
Dividend Yield77.74%
Average Volume (3M)1.49M
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-1.69%
EPS Growth-4.29%
CountryUS
Employees1,251
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding73,123,190
10 Day Avg. Volume1,105,571
30 Day Avg. Volume1,485,408
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)0.68
Price to Sales (P/S)0.84
P/FCF Ratio-44.03
Enterprise Value/Market Cap0.43
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.41
Enterprise Value/Ebitda-2.27
Forecast
1Y Price Target
$4.40Price Target Upside34.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 generates revenue through multiple streams, primarily from virtual gift sales, advertising, and live streaming subscriptions. Users can purchase virtual gifts to send to their favorite streamers, which constitutes a significant portion of Huya's revenue. Additionally, the company earns income from advertising partnerships, where brands pay to promote their products on the platform. Huya also offers subscription services that provide users with exclusive content and features. Strategic partnerships with game developers and publishers enhance its ecosystem, driving user engagement and increasing monetization opportunities. The growing esports sector in China further contributes to its earnings, as Huya hosts various tournaments and events that attract large audiences and sponsorship deals.
Huya Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant growth in game-related services, a successful expansion in game distribution, and improved financial performance, driven by strategic partnerships and AI investment. However, challenges remain with a decline in live streaming revenues and interest income. Overall, the positive aspects of the business transformation and growth initiatives outweigh the setbacks.Q2-2025 Updates
Positive Updates
Significant Growth in Game-Related Services
Game-related services, advertising, and other revenues grew significantly from RMB 122 million in Q2 2023 to RMB 414 million this quarter, now contributing over 1/4 of total net revenues and accounting for over 40% of Huya's total transaction value.
Expansion in Joint Distributed Games
Huya increased its portfolio of jointly distributed games in the domestic market to over 300 titles, with strong performances from Tencent's games such as Honor of Kings, Peacekeeper Elite, and League of Legends Mobile.
Increase in Gross Billings from In-Game Accessories
Gross billings from in-game accessories and cosmetics items increased by 90% year-over-year, reflecting strong demand from Huya's highly engaged user base.
Improved Financial Performance
Total net revenues for the second quarter reached approximately RMB 1.57 billion, increasing both year-over-year and quarter-over-quarter for two consecutive quarters. Achieved a non-GAAP net income of RMB 48 million, marking the sixth consecutive profitable quarter.
Investment in AI and Technology
Huya is embedding AI across operations, enhancing user experience with AI agents like Hu Xiao Ai, and developing AI-powered virtual live streamers and sparring partners for e-sports players.
Negative Updates
Decline in Live Streaming Revenues
Live streaming revenues were RMB 1.15 billion for Q2 compared with RMB 1.23 billion for the same period last year, primarily due to the continued impact of the macroeconomic and industry environment.
Decrease in Interest Income
Interest income decreased to RMB 59 million for Q2 compared with RMB 103 million for the same period last year, primarily due to a lower time deposit balance and special cash dividends paid.
Flat Domestic Paying Users
The number of domestic paying users in the second quarter remained flat compared with the first quarter, standing at 4.4 million.
Company Guidance
During Huya's Second Quarter 2025 Earnings Webinar, the company provided a comprehensive update on their financial performance and strategic initiatives. They reported total net revenues of approximately RMB 1.57 billion, with live streaming revenues slightly increasing to RMB 1.15 billion and game-related services, advertising, and other revenues growing significantly to RMB 414 million. This latter segment now represents 26.4% of total net revenues and over 40% of Huya's total transaction value. The company highlighted a 90% year-over-year increase in gross billings from in-game accessories and cosmetics, driven by their integration into live streams and e-sports events. They announced a break-even non-GAAP operating profit for the quarter and a non-GAAP net income of RMB 48 million, marking their sixth consecutive profitable quarter. Huya also emphasized their strategic alignment with Tencent, expansion into game publishing, and overseas market growth, reaching tens of millions of monthly active users internationally. The company's AI initiatives, such as the AI agent Hu Xiao Ai and AI-powered virtual live streamers, are designed to enhance user engagement and create new consumption opportunities. Looking ahead, Huya expects steady live streaming revenues and continued growth in game-related services, with a focus on improving operating profitability and expanding their business boundaries.Huya Financial Statement Overview
Summary
Huya's financial performance is under pressure with declining revenues and persistent losses. The income statement shows a downward trend in revenue and profitability, and the cash flow statement indicates liquidity issues. However, the balance sheet remains relatively strong 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.11B | 6.08B | 6.99B | 9.22B | 11.35B | 10.91B |
| Gross Profit | 774.84M | 809.45M | 815.20M | 610.87M | 1.60B | 2.27B |
| EBITDA | -138.69M | -88.45M | -303.19M | -592.63M | 94.84M | 827.76M |
| Net Income | -153.15M | -47.95M | -204.52M | -547.67M | 583.50M | 884.16M |
Balance Sheet | ||||||
| Total Assets | 6.65B | 9.57B | 12.92B | 13.79B | 13.25B | 12.41B |
| Cash, Cash Equivalents and Short-Term Investments | 3.51B | 5.26B | 7.36B | 9.72B | 10.96B | 10.47B |
| Total Debt | 30.74M | 48.63M | 79.90M | 38.42M | 81.56M | 86.85M |
| Total Liabilities | 1.60B | 2.02B | 2.30B | 2.38B | 2.74B | 2.63B |
| Stockholders Equity | 5.05B | 7.55B | 10.62B | 11.41B | 10.51B | 9.78B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -116.22M | -163.37M | -4.12B | 229.39M | 811.66M |
| Operating Cash Flow | 0.00 | 94.28M | -32.08M | -3.00B | 327.45M | 1.24B |
| Investing Cash Flow | 0.00 | 3.68B | 53.21M | -5.81B | -1.88B | 1.00B |
| Financing Cash Flow | 0.00 | -3.10B | -202.29M | 41.45M | 10.72M | 265.29M |
Huya Technical Analysis
Neutral
3.28
Price Trends
3.41
Negative
2.95
Positive
2.51
Positive
Market Momentum
-0.03
Positive
44.65
Neutral
19.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUYA, the sentiment is Neutral. The current price of 3.28 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.41, and above the 200-day MA of 2.51, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 19.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $17.65B | 59.90 | 54.66% | 2.16% | 1.36% | -45.79% | |
71 Outperform | $490.08B | 49.15 | 43.55% | ― | 14.28% | 46.86% | |
68 Neutral | $47.01B | 62.88 | 2.18% | ― | -3.79% | ― | |
68 Neutral | $2.38B | 192.97 | 0.67% | ― | -10.86% | -94.68% | |
63 Neutral | $729.32M | ― | -2.12% | 77.74% | -1.69% | -4.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
49 Neutral | $1.57B | ― | 20.03% | ― | 9.42% | 39.83% |
* Communication Services Sector Average
HUYA
Huya
3.28
0.38
13.10%
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Huya Corporate Events
Huya Inc. Reports Q2 2025 Financial Results Amid Strategic Growth
Aug 12, 2025
On August 12, 2025, Huya Inc. announced its unaudited financial results for the second quarter of 2025, ending June 30. The company reported total net revenues of RMB1,567.1 million, a slight increase from the previous year, with game-related services and advertising revenues showing significant growth. Despite a net loss of RMB5.5 million, Huya’s strategic transformation efforts have led to a stabilization in live streaming revenues and an increase in average monthly active users to 161.6 million. The company has repurchased US$75.4 million of its ADSs and distributed a special dividend of US$340 million, indicating a focus on shareholder value and strategic expansion.
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.