15 Jan 2022: Update on Huya

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Huya being the leading gaming streaming platform in China did not do well in terms of price performance just like the other chinese tech. Comparing its price performance to that of Douyu and Bilibili, it does seem to have underperformed Douyu whereas it has outperformed Bilibili. Nevertheless, if we go abit deeper, we should know that Huya is in actual fact, outperforming Douyu.

It is not hard to find out why. Huya's monthly active users have increased quarter on quarter and year on year and its already around 85 million active users. Douyu is lagging far behind...

Somemore, it was reported recently that Huya has spent big money to get an exclusive LPL for 5 years. This was reported to be a major event that gaming streaming participants would want to watch. This would further add on pressure for Douyu. Once the Douyu's users are willing to try Huya platform and tend to spend more time on it and if Huya does come out with more products and services to retain the hours spent on Huya as compared to Douyu, Huya would have achieved its purpose to grow its monthly active users. Should this be over 100 million MAU going into 2022, this would be promising for Huya. If what Huya can do into 1Q2022, i.e. to get maximum profit for its costs incurred, this would be a truly excellent investment. Until then, we are unable to see the ROI for this investment but strategically it does seem good on the surface.

Comparing Huya against that of Douyu, we know that Huya has almost 1.7 billion USD on balance sheet but instead choose not to embark on share buyback like that of Douyu. It has instead made the money well spent to enhance its market share. This is also why I am of the view that Huya's leadership will continue and the leadership gap over Douyu will be bigger and bigger.

As always, this should not be construed as any investment or trading advice.

r/great_investment

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‌$Huya Inc.(HUYA)$‌‌$DouYu(DOYU)$‌‌$KUAISHOU-W(01024)$‌‌$Bilibili Inc.(BILI)$‌‌$BILIBILI-SW(09626)$‌‌$JOYY Inc.(YY)$‌