20230517-招银国际-Better_margin_improvement_ahead_6页_909kb

CMB International Global Markets issued an equity research update on Huya (HUYA US) dated May 17, 2023, maintaining a Buy recommendation with a target price of US$6.9, representing an 115.6% upside from the current price. The report highlights better-than-feared first-quarter 2023 results, with revenue declining 21% year-over-year to RMB1.95 billion, exceeding consensus estimates. Key drivers include stronger-than-expected livestreaming performance and improved margins, with an adjusted gross margin of 13.2%. For the second quarter, revenue is expected to be stable quarter-over-quarter due to muted livestreaming but enhanced advertising and margin improvements. Analysts suggest a potential recovery by the second half of 2023, supported by regulatory changes, macroeconomic recovery, and new game launches. The stock trades below its net cash position and may be re-rated, with unchanged full-year revenue forecasts.