GUANGZHOU - HUYA Inc . (NYSE: HUYA), a prominent game live streaming platform in China, has named Mr. Raymond Peng Lei as its new Acting Co-Chief Executive Officer and Chief Financial Officer, starting September 5, 2024. Mr. Lei will take over the Acting Co-CEO role from Ms. Ashley Xin Wu, who will continue with the company as Vice President of Finance.
Mr. Lei brings a wealth of experience to Huya (NYSE:HUYA), having served in various finance roles at Tencent (HK:0700) since 2004, most recently as the finance director of Tencent Financial Technology (FiT). His professional journey also includes over a decade at PricewaterhouseCoopers, where he specialized in auditing and consulting services. A member of the Chinese Institute of Certified Public Accountants, Mr. Lei holds a bachelor's degree in economics from Shenzhen University.
In his new role, Mr. Lei will share CEO duties with Mr. Junhong Huang, who is also a Director, Acting Co-CEO, and Senior Vice President of HUYA Inc. The board, led by Chairman Mr. Songtao Lin, has expressed confidence in Mr. Lei's abilities to further Huya's strategic transformation and business development.
Huya, known for its game live streaming services, is actively expanding its presence in the gaming industry, both in China and internationally. The company's commitment to innovation aims to meet the changing needs of game enthusiasts, content creators, and industry partners.
This management change announcement includes forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These statements reflect the company's current expectations and involve risks and uncertainties that could cause actual results to differ materially.
The information in this article is based on a press release statement from HUYA Inc.
In other recent news, HUYA Inc. has been upgraded from Sell to Buy by Citi, following a second-quarter performance that exceeded expectations. The gaming live-streaming platform's revenues reached Rmb1.54 billion, slightly above the Street's forecast, driven notably by its game-related services. Despite weaker live-streaming revenues due to macroeconomic challenges, HUYA's non-GAAP net income outperformed analyst predictions by 21%, reaching Rmb97.0 million.
Citi's upgrade was further supported by HUYA's announcement of a US$250 million special cash dividend and its ongoing share buyback program. The company also reported a strong cash position, with RMB 8.2 billion in cash and cash equivalents. Looking forward to the second half of 2024, Citi anticipates the live-streaming segment to show sequential stability and expects the momentum in game-related revenues to continue.
In the recent earnings call, HUYA highlighted its growth in game-related services, advertising, and other segments, which accounted for 20% of the total net revenues for the first time. Despite a downturn in live-streaming revenues, the company managed to achieve near breakeven non-GAAP operating margins through cost control measures and operational efficiency improvements. These are the latest developments in HUYA's financial performance.
InvestingPro Insights
As HUYA Inc. (NYSE: HUYA) welcomes Mr. Raymond Peng Lei to its executive team, the company's financial health and market positioning remain key considerations for investors. With a current market capitalization of $933.56 million, HUYA is navigating through a challenging period marked by a 24.38% decline in revenue over the last twelve months as of Q2 2024. This is reflected in the company's gross profit margin, which stands at a modest 11.11% in the same period.
Despite recent financial headwinds, InvestingPro Tips suggest there is potential for a turnaround. HUYA holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, while the company did not turn a profit in the last twelve months, analysts predict HUYA will be profitable this year. This forecasted shift could be a significant driver for future growth.
From an investment perspective, HUYA's stock has delivered a high return over the last year, with a 79.61% increase in price total return, underscoring the company's resilience in the marketplace. Moreover, the company's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility. It's worth noting that HUYA is trading at a low revenue valuation multiple, which might indicate an undervalued stock relative to its revenue.
For investors seeking comprehensive analysis, there are additional InvestingPro Tips available on InvestingPro, which delve deeper into HUYA's financial metrics and market potential. As of now, there are nine more tips listed on InvestingPro that could provide further insights into HUYA's investment profile.
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