虎牙：直播业务短期承压，新业务保持强劲

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $4.00, indicating a potential upside of 32% from the current price of $3.03 [5][8]. Core Insights - The company's Q3 2024 revenue was RMB 1.54 billion, a year-on-year decline of 7.6%, but slightly above market expectations by 1.4%. The live streaming revenue dropped 26% year-on-year, primarily due to industry weakness and strategic adjustments [2][3]. - The company reported a cautious operational strategy, with stable operating expenses and an operating loss of RMB 32 million. Adjusted net profit was RMB 78 million, exceeding market expectations of RMB 64 million, with an adjusted net profit margin of 5.1% [2][3]. - Game-related services, advertising, and other revenues surged by 209% year-on-year and 33% quarter-on-quarter, contributing 27% to total revenue, driven by enhanced collaboration with Tencent and other game companies [3]. Financial Summary - The company's financial projections indicate a decline in revenue from RMB 6.99 billion in FY23 to an estimated RMB 6.05 billion in FY24, with an expected operating loss of RMB 209 million in FY24 [4]. - Adjusted net profit is projected to recover to RMB 259 million in FY24, with a target price-to-earnings ratio of 25.8x for FY24 [4].