20231115-招银国际-Looking_at_game_monetization_and_better_margin_6页_917kb

CMB International Global Markets Equity Research: Huya

• 3Q23 Performance: Huya's third-quarter 2023 revenues declined 31% year-on-year, exceeding analyst consensus by 8%, driven by liv stream adj revenue dip (-24% YoY) and others sub (-68% YoY). Adjusted NPM beat consensus at 63%, supported by cost control and improved gross margin.

• Outlook: Livestreaming adjustments may linger, but forecast for FY24 revenue recovery with better margins from game monetization. Game-related revenue expected to contribute >10% in FY24 and 30% in FY25.

• Analyst Recommendation: Maintain BUY rating with target price of US$68 (up from US$63), citing defensivemoniker, attractive valuation, and net cash position.

• Financial Highlights: FY23 revenue estimated at US$6,924mn with adj NPM of 90mn, Gross margin at 11%. DCF-based TP increase to US$68 reflects improved margins and growth prospects.