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GUANGZHOU - HUYA Inc. (NYSE: HUYA), a prominent game live streaming platform in China with a market capitalization of $731 million, has recently bought back approximately $1.1 million of its American depositary shares (ADSs) on Monday. The repurchase, which was close to the daily limit set by Rule 10b-18, is part of a broader share repurchase program authorizing the company to buy up to $100 million of its ADSs or ordinary shares by March 31, 2026. According to InvestingPro data, the company holds more cash than debt on its balance sheet, with a healthy current ratio of 3.14.
This move comes as a response to the recent volatility in Huya’s stock price, which has declined by 27.54% in the past week, and is seen as a gesture of confidence in the company’s valuation and future prospects. Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer, stated that the repurchase reflects the company’s commitment to enhancing shareholder value and its belief that the current market valuation does not accurately represent Huya’s underlying fundamentals and future potential. This view aligns with InvestingPro’s analysis, which suggests the stock is currently undervalued. For detailed valuation metrics and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The company has indicated that it will continue to monitor market conditions and may make additional share repurchases from time to time at its discretion, within the parameters of the repurchase program and applicable laws. With annual revenue of $833 million and analysts forecasting positive earnings per share of $0.14 for FY2025, Huya’s update follows a recent inquiry from investors but does not signify an obligation to provide regular updates on repurchase activities beyond legal requirements.
Huya is recognized for its technology-driven approach and provides a diverse range of content in gaming, e-sports, and entertainment. The company has built a large and interactive community of game enthusiasts and is expanding its services to meet the evolving demands of users, content creators, and industry partners both in China and internationally. Get access to more detailed financial metrics, growth projections, and expert analysis with InvestingPro, featuring comprehensive research reports on over 1,400 US-listed companies.
The information in this article is based on a press release statement from HUYA Inc. The company’s forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. Huya’s plans and expectations are subject to various factors, including but not limited to economic conditions, regulatory changes, and market acceptance.
In other recent news, HUYA Inc. reported its fourth-quarter 2024 earnings, revealing a notable shortfall in earnings per share (EPS) expectations. The company posted an EPS of $0.01, significantly below the anticipated $0.25, while revenue also missed projections, coming in at $1.49 billion against the forecasted $1.54 billion. Despite this, HUYA demonstrated strong year-over-year growth, with total net revenues increasing by 25.6% to RMB 6.08 billion, driven by a surge in game-related services, advertising, and other revenues. Analysts from both Citi and Jefferies have adjusted their price targets for HUYA to $4.70 from $5.00, while maintaining a Buy rating, reflecting confidence in the company’s long-term prospects.
Citi noted that HUYA’s non-GAAP net profit exceeded expectations, standing at RMB 1.2 million, surpassing a forecasted RMB 20 million loss. Jefferies highlighted the potential of artificial intelligence (AI) to enhance user experience on HUYA’s platform, indicating a positive outlook for future growth. The company plans to distribute a total of no less than $400 million in dividends from 2025 to 2027, showcasing its commitment to shareholder returns. Despite the earnings miss, HUYA is focusing on strategic transformation and diversification of revenue streams, particularly in game-related services and advertising. The company is also leveraging AI technologies to innovate and expand its content offerings, aiming to sustain growth in the coming years.
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