Core Viewpoint - HUYA Inc. announced a cash dividend of US$1.47 per ordinary share, which exceeds 25% of the ADS price on the announcement date, with the ex-dividend date set for July 1, 2025 [1][2] Group 1: Dividend Announcement - The New York Stock Exchange has set July 1, 2025, as the ex-dividend date for HUYA's cash dividend as part of its 2025-2027 Dividend Plan [1] - The cash dividend of US$1.47 per ordinary share or American depositary share (ADS) was announced on March 18, 2025 [1] - The expected dividend payment date is June 30, 2025 [1] Group 2: Due Bill Procedures - The NYSE will apply "due bill" procedures for trades of HUYA's ADSs entered before July 1, 2025, and settled on or after the record date of June 17, 2025 [2] - Buyers who purchase securities during the due bill period will be entitled to the cash dividend, while sellers will not [2] - Investors are advised that trades made on or after July 1, 2025, will not qualify for the announced cash dividend [2] Group 3: Company Overview - HUYA Inc. is a leading game live streaming platform in China, offering dynamic content across games, e-sports, and entertainment genres [4] - The company has cultivated a large, engaged community of game enthusiasts and is expanding its presence in the game industry both domestically and internationally [4] - HUYA is committed to providing innovative game-related services to meet the evolving needs of game enthusiasts, content creators, and industry partners [4]

Financial Data and Key Metrics Changes - Total net revenues for 2024 were RMB6.08 billion, down from RMB6.99 billion in the prior year [37] - Non-GAAP net income reached RMB269 million for 2024, up from RMB119 million in the prior year, with a non-GAAP net margin of 4.4% compared to 1.7% [38] - Non-GAAP gross margin improved to 30.6% for 2024, up from 11.9% in the prior year [38] - For Q4 2024, total net revenues were approximately RMB1.5 billion, with live streaming revenues at RMB1.12 billion [29][32] Business Line Data and Key Metrics Changes - Revenues from game-related services, advertising, and other segments increased by 145.4% year-over-year to RMB1.33 billion for the full year [7] - In Q4, revenues from game-related services, advertising, and others increased by 99.4% year-over-year to RMB372 million [9] - Live streaming revenues for 2024 were RMB4.75 billion, down from RMB6.45 billion in the prior year [37] Market Data and Key Metrics Changes - The number of paying users in Q4 rose to 4.5 million year-over-year, indicating engagement across the core user base [29] - The company captured over half of the market share for the industry's top-tier in-house produced e-sports events in 2024 [19] Company Strategy and Development Direction - The company is focused on advancing its commercialization transformation, with non-live streaming business revenue accounting for over 20% of total revenue for the full year [56] - Plans to replicate the successful self-organized tournament model to include more popular e-sports titles in 2025 [21] - The company aims to explore new technologies and deepen their applications to improve content creator and user experience [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges in 2024 but highlighted solid performance driven by strategic transformation and new game launches [7] - The company expects live streaming revenue to seasonally decline in Q1 2025 due to typical low seasonality in the industry [68] - Future profitability will depend on improvements in operating results and cost control measures [72] Other Important Information - The company introduced a dividend plan for 2025 to 2027, expecting to distribute a total of no less than $400 million to shareholders [39] - As of December 31, 2024, the company had cash and cash equivalents totaling RMB6.73 billion [37] Q&A Session Summary Question: What factors do we consider when we make shareholder return strategies? - The company emphasized enhancing shareholder returns through a dividend plan distributing no less than $400 million over the next three years, with a cash dividend of $1.47 per ADS for 2025 [44][46] Question: Can management share expectations for the other revenue business growth? - Revenues from game-related services nearly doubled year-over-year, with ongoing enhancements in operational excellence and collaborations with game developers expected to drive future growth [51][56] Question: How does AI impact product monetization strategy and cost structure? - The company is integrating AI solutions to enhance user experience and operational efficiency, with early testing showing increased viewer activity and revenue from interactions [60][64] Question: Can you discuss live streaming revenue trends and overall profitability margin trends? - Live streaming revenue remains weak due to macroeconomic factors, but gross margin improved to 11.4% in Q4, with expectations for future profitability influenced by revenue scale and cost control [68][70]

Financial Performance - Total net revenues for Q4 2024 were RMB1,495.8 million (US$204.9 million), a decrease of 2.2% from RMB1,529.8 million in Q4 2023[6]. - Game-related services, advertising, and other revenues increased by 145.4% year-over-year to RMB1.33 billion (US$182.7 million) for fiscal year 2024, up from RMB543.5 million in 2023[4][27]. - Net loss attributable to HUYA Inc. for Q4 2024 was RMB172.2 million (US$23.6 million), an improvement from RMB275.0 million in Q4 2023[23]. - Non-GAAP net income for Q4 2024 was RMB1.2 million (US$0.2 million), a turnaround from a non-GAAP net loss of RMB189.7 million in Q4 2023[24]. - Live streaming revenues for fiscal year 2024 were RMB4,745.2 million (US$650.1 million), down from RMB6,450.8 million in the prior year[26]. - Total net revenues for the twelve months ended December 31, 2024, were RMB 6,079,115, a decrease of 13.1% compared to RMB 6,994,328 for the same period in 2023[67]. - Live streaming revenues for the three months ended December 31, 2024, were RMB 1,124,188, down 16.3% from RMB 1,343,463 in the previous quarter[67]. - Gross profit for the twelve months ended December 31, 2024, was RMB 809,454, representing a slight decrease from RMB 815,203 in 2023[67]. - Operating loss for the twelve months ended December 31, 2024, was RMB 189,576, compared to an operating loss of RMB 443,592 for the same period in 2023[67]. - The company reported a net loss attributable to HUYA Inc. of RMB 47,955 for the twelve months ended December 31, 2024, compared to a net loss of RMB 204,519 in 2023[67]. Profitability and Expenses - Gross margin improved to 11.4% in Q4 2024, compared to 1.0% in Q4 2023, due to decreased revenue sharing fees and content costs[16]. - Total operating expenses decreased by 23.8% year-over-year in Q4 2024, contributing to improved profitability[8]. - Non-GAAP net income attributable to HUYA Inc. was RMB268.8 million (US$36.8 million) for fiscal year 2024, up from RMB119.1 million for the prior year[39]. - Non-GAAP basic and diluted net income per ADS were RMB1.16 (US$0.16) and RMB1.15 (US$0.16) for fiscal year 2024, compared to RMB0.49 and RMB0.48 for fiscal year 2023[40]. Cash Flow and Dividends - Net cash provided by operating activities was RMB94.3 million (US$12.9 million) for fiscal year 2024, compared to net cash used in operating activities of RMB32.1 million for fiscal year 2023[40]. - The company plans to distribute a total of no less than US$400 million to shareholders through its 2025-2027 Dividend Plan[8]. - The 2025 Cash Dividend is expected to be approximately US$340 million, with a payment of US$1.47 per ordinary share or ADS, to be distributed on or around June 30, 2025[42]. - The Expected 2026 and 2027 Dividends are anticipated to be no less than US$30 million each year[43]. - As of December 31, 2024, the Company had repurchased 19.1 million ADSs for a total of US$63.6 million under the share repurchase program[45]. User Metrics - Average mobile MAUs for Q4 2024 were 82.6 million, down from 85.5 million in Q4 2023[6]. - The average mobile monthly active users (MAUs) for the Company's domestic Huya Live platform are calculated by dividing the sum of mobile active users for each month during the relevant period by the number of months in that period[52]. Strategic Initiatives - The company aims to advance its "AI + Live Streaming" strategy to enhance content creation efficiency and user experience[7]. - In December 2023, the Company acquired a global mobile application service provider from Tencent Holdings Limited for US$81 million, consolidating its financial results retrospectively since Q1 2022[50]. Asset and Liability Management - Total current assets decreased to RMB 6,088,273 as of December 31, 2024, down from RMB 8,150,611 as of December 31, 2023[63]. - Total assets decreased to RMB 9,567,811 as of December 31, 2024, compared to RMB 12,924,354 as of December 31, 2023[65]. - Total liabilities decreased to RMB 2,017,132 as of December 31, 2024, from RMB 2,299,755 as of December 31, 2023[65]. - Shareholders' equity decreased to RMB 7,550,679 as of December 31, 2024, down from RMB 10,624,599 as of December 31, 2023[65]. Impairment and Losses - Impairment loss of investments was RMB232.5 million (US$31.8 million) for fiscal year 2024, compared to RMB225.8 million for the prior year[37]. - The impairment loss of investments for the three months ended December 31, 2023, was RMB 79,911 million, compared to RMB 36,298 million in the previous quarter[73]. - Share-based compensation expenses for the three months ended December 31, 2023, were RMB 384 million, a significant increase from RMB 13,203 million in the previous quarter[73].

Core Insights - Huya Inc. reported a significant increase in revenues from game-related services, advertising, and in-game item sales, which rose by 145.4% year-over-year to RMB1.33 billion in 2024, accounting for 21.9% of total net revenues, up from 7.8% in 2023 [2][23] - The company achieved a turnaround in profitability, with positive net cash provided by operating activities for the full year 2024, contrasting with a net loss in 2023 [2][34] - Huya's strategic transformation and new game launches contributed to improved overall profitability, with a gross margin of 11.4% in Q4 2024, significantly higher than 1.0% in Q4 2023 [12][22] Financial Performance - Total net revenues for Q4 2024 were RMB1,495.8 million (US$204.9 million), a slight decrease from RMB1,529.8 million in Q4 2023 [6][16] - Live streaming revenues for Q4 2024 were RMB1,124.2 million (US$154.0 million), down from RMB1,343.5 million in Q4 2023, primarily due to macroeconomic challenges [7][22] - Game-related services, advertising, and other revenues for Q4 2024 were RMB371.6 million (US$50.9 million), compared to RMB186.3 million in Q4 2023 [8][16] Cost Management - Cost of revenues decreased by 12.5% to RMB1,325.4 million (US$181.6 million) in Q4 2024, down from RMB1,514.6 million in Q4 2023, driven by reduced revenue sharing fees and content costs [9][24] - Total operating expenses were reduced by 23.8% year-over-year, contributing to improved profitability [5][30] - Research and development expenses decreased by 10.0% to RMB123.3 million (US$16.9 million) in Q4 2024, while sales and marketing expenses fell by 44.6% to RMB62.8 million (US$8.6 million) [13][14] Shareholder Returns - The company announced a 2025-2027 Dividend Plan, expecting to distribute a total of no less than US$400 million to shareholders over the next three years [5][35] - The 2025 Cash Dividend is expected to be approximately US$340 million, with a payment date around June 30, 2025 [37][38] - The share repurchase program was extended to March 31, 2026, with US$63.6 million repurchased as of December 31, 2024 [40]

Core Viewpoint - HUYA Inc. is set to report its fourth quarter and fiscal year 2024 unaudited financial results on March 18, 2025, before U.S. market opening [1] Group 1: Earnings Announcement - The earnings webinar is scheduled for 6:00 a.m. U.S. Eastern Time on March 18, 2025, which corresponds to 6:00 p.m. Beijing/Hong Kong time on the same day [2] - Participants can register online in advance to join the webinar, receiving access information via email upon registration [3] Group 2: Company Overview - HUYA Inc. is recognized as a leading game live streaming platform in China, focusing on technology-driven content across games, e-sports, and entertainment genres [5] - The company has built a large, interactive community of game enthusiasts and is expanding its presence in the gaming industry through collaborations with game companies, e-sports organizers, and talent agencies [5] - HUYA is committed to providing innovative game-related services to meet the evolving needs of game enthusiasts and industry partners [5]

Core Viewpoint - The article emphasizes the importance of value investing and highlights HUYA as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [1][2][6]. Group 1: Value Investing - Value investing is a popular strategy for identifying undervalued stocks that have potential for profit [2]. - The Zacks Rank and Style Scores system can help investors find stocks with specific traits, particularly in the "Value" category [3]. Group 2: HUYA Stock Analysis - HUYA has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is a strong value stock [4]. - The stock's Forward P/E ratio is 9.98, significantly lower than the industry average of 27.07, suggesting it is undervalued [4]. - HUYA's Forward P/E has fluctuated between 7.81 and 131.66 over the past year, with a median of 12.67 [4]. - The P/S ratio for HUYA is 0.98, compared to the industry's average of 2.27, further indicating undervaluation [5]. - These metrics suggest that HUYA is likely being undervalued and has a strong earnings outlook, making it an impressive value stock [6].

Core Viewpoint - HUYA Inc. has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates - The Zacks Consensus Estimate for HUYA indicates expected earnings of $0.20 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 185.7% [8]. - Over the past three months, analysts have raised their earnings estimates for HUYA by 1.6% [8]. Zacks Rating System - The Zacks rating system is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [4][6]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. Market Implications - The upgrade to Zacks Rank 2 places HUYA in the top 20% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10]. - Rising earnings estimates and the corresponding rating upgrade imply an enhancement in HUYA's underlying business, which could lead to increased investor interest and stock price appreciation [5].

The price trend for HUYA Inc. Sponsored ADR (HUYA) has been bearish lately and the stock has lost 7.1% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall ...

I published my investment thesis on HUYA Inc. (NYSE: HUYA ) in August of this year. My thesis was largely based on HUYA's positive fundamental trends and extremely shareholder-friendly capital allocation policies. Since I initiated my "buy" rating, HUYA has I am the co-founder and portfolio manager for a multi-family office with a focus on U.S and Asia markets. I have a bachelor's and master's degree in accounting and finance from one of the top programs in the U.S. I am a CFA Charterholder. Prior to starti ...

Astrada Advisors delivers actionable recommendations that enhance portfolio performance and uncover alpha opportunities, supported by a strong track record in investment research at leading global investment banks. With expertise spanning technology, media, internet, and consumer sectors in North America and Asia, Astrada Advisors excels in identifying high-potential investments and navigating complex industries.Leveraging extensive local and global experience, Astrada Advisors offers a unique perspective o ...