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HUYA Inc Class A HUYA

Morningstar Rating
$5.36 −0.06 (1.11%)
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Company Report

Huya Earnings: Revenue Mix Shift Toward Games Translates to Strong Profitability

No-moat Huya’s first-quarter earnings were above our estimates, and management lifted profitability guidance for the full year. This led us to lift our forecasts for the company, but the favorable valuation impact from this was offset by Huya paying out its $150 million in special dividends as shares went ex-dividend on May 9. Overall, we maintain Huya’s fair value estimate at $7.70 per share. We reiterate that the bulk of Huya’s value stems from its net cash position equivalent to $5.60 per share at the end of March, excluding special dividends, against the stock price of $4.70 as of the market close on May 13.

Price vs Fair Value

HUYA is trading at a 723% premium.
Price
$5.42
Fair Value
$7.20
Uncertainty
Very High
1-Star Price
$55.24
5-Star Price
$4.31
Economic Moat
Wkcjs
Capital Allocation
Lrvylyvm

Bulls Say, Bears Say

Bulls

Exclusive deals on top esports events enable Huya to maintain high user stickiness and elevate user spending.

Bears

Increasing revenue-sharing costs to streamers will continue to dim the margin outlook of Huya over the next few years.

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News

Trading Information

Previous Close Price
$5.42
Day Range
$5.325.62
52-Week Range
$2.166.84
Bid/Ask
$5.28 / $5.44
Market Cap
$1.22 Bil
Volume/Avg
2.5 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
88.23
Price/Sales
1.48
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.34%

Company Profile

Established in 2011, Huya is the largest online game livestreaming company in China. Headquartered in Guangzhou, Huya mainly provides livestreamed videos on esports games such as League of Legends and Honor of Kings and collects virtual tips from viewers. Its products include the Huya Live platform in China and Nimo TV in Southeast Asia and South America. As of 2023, Huya was a subsidiary of Tencent, which owned 63% of its equity stake and held 94% of the voting power.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Total Number of Employees
1,345

Competitors

Valuation

Metric
HUYA
TME
09899
Price/Earnings (Normalized)
88.2326.6624.59
Price/Book Value
0.963.012.41
Price/Sales
1.486.042.56
Price/Cash Flow
38.6720.3444.52
Price/Earnings
HUYA
TME
09899

Financial Strength

Metric
HUYA
TME
09899
Quick Ratio
2.532.423.43
Current Ratio
2.762.673.65
Interest Coverage
46.801,041.38
Quick Ratio
HUYA
TME
09899

Profitability

Metric
HUYA
TME
09899
Return on Assets (Normalized)
0.94%8.61%7.34%
Return on Equity (Normalized)
1.13%11.56%10.20%
Return on Invested Capital (Normalized)
−3.54%8.94%4.90%
Return on Assets
HUYA
TME
09899
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