Douyu International Intrinsic Value – DOUYU INTERNATIONAL Reports Fourth Quarter Earnings Results for FY2022 on March 20 2023.
March 22, 2023
Earnings Overview
On March 20 2023, DOUYU INTERNATIONAL ($NASDAQ:DOYU) released their financial results for the fourth quarter of FY2022, which closed on December 31 2022. Total revenue for the quarter was CNY 45.3 million, an impressive year-on-year increase of 126.0%. However, net income declined 27.8%, amounting to CNY 1681.0 million compared to the same period in the prior year.
Transcripts Simplified
Today’s conference is being recorded. At this time, I’d like to turn the call over to Mr. Pang Shengdong, Chief Executive Officer of Douyu International Holding Limited. Please go ahead, sir.
Thank you. Good morning, everyone.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Douyu International. More…
| Total Revenues | Net Income | Net Margin |
| 7.11k | -75.42 | -1.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Douyu International. More…
| Operations | Investing | Financing |
| -586.26 | -19.13 | -107.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Douyu International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.15k | 1.58k | 19.05 |
Key Ratios Snapshot
Some of the financial key ratios for Douyu International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.8% | – | -2.8% |
| FCF Margin | ROE | ROA |
| -7.7% | -1.9% | -1.5% |
Price History
The stock opened at $1.2 and closed at the same price, marking a 1.7% increase from its prior closing price of $1.2. DOUYU INTERNATIONAL‘s strong results were attributed to its expansive international presence and comprehensive product offering. The company’s focus on customer experience, product innovation and global expansion have allowed it to reach new markets and drive revenue growth. Investors were pleased with the company’s performance and reacted positively to the news, leading to the 1.7% increase in the company’s stock price. Following the results, the company expects to continue its strong growth and position itself as a leader in the livestreaming and entertainment space. Live Quote…
Analysis – Douyu International Intrinsic Value
At GoodWhale, we conducted an analysis of DOUYU INTERNATIONAL‘s wellbeing. Our proprietary Valuation Line determined the fair value of DOUYU INTERNATIONAL’s share to be around $5.5. However, the stock is currently being traded at $1.2, which indicates it is undervalued by 78.2%. We believe this presents a potential opportunity for those looking to invest in DOUYU INTERNATIONAL. More…
Peers
The competition within the online video gaming industry is fierce, with various companies vying for attention from users. Two of the largest and most well-known of these companies are DouYu International Holdings Ltd and its competitors, Bilibili Inc, Good Gamer Entertainment Inc, and ClickStream Corp. With each company offering a variety of content and features, the competition between them has become increasingly fierce, with each striving to be the go-to platform for gamers.
– Bilibili Inc ($SEHK:09626)
Bilibili Inc is a Chinese media company specializing in online entertainment. It operates an online platform that offers a variety of content such as videos, live streaming, and short videos, as well as mobile games, comics, and novels. As of 2023, the company had a market capitalization of 73.13 billion US dollars and a return on equity of -28.14%. This suggests a decline in the performance of the company in comparison to the previous years, however the company still has managed to maintain a steady market capitalization. With its wide range of content, Bilibili Inc has established itself as an important player in the online entertainment sector in China.
– Good Gamer Entertainment Inc ($TSXV:GOOD)
Good Gamer Entertainment Inc is a company that specializes in the development and distribution of mobile and digital video games. The company has a market capitalization of 5.75 million dollars as of 2023. This figure speaks to the company’s ability to generate a sizable amount of money from its operations. Despite this, however, the company has a Return on Equity of -576.11%, indicating that its financial performance has been poor in recent times. This means that investors may be less willing to invest in the company, as it does not appear to be generating the returns they would expect from such a large-scale operation.
– ClickStream Corp ($OTCPK:CLIS)
ClickStream Corp is a technology company that specializes in the aggregation, delivery, and analysis of data from digital channels. Their services are used by businesses to track and understand customer behavior, gain insights into performance, make data-driven decisions, and optimize their marketing strategies. As of 2023, ClickStream Corp has a market capitalization of 68.66k, which indicates the public’s opinion on the company’s worth. Additionally, their return on equity (ROE) is impressive at 597.29%, which indicates that the company is doing a great job of utilizing its assets and generating returns for its shareholders.
Summary
DOUYU INTERNATIONAL reported a 126% year-over-year increase in total revenue for the fourth quarter of FY2022, ending December 31 2022. Net income, however, decreased 27.8% from the same period of the previous year. Investors may be encouraged by the robust revenue growth, but should take into account the decrease in net income and potential downside risk when evaluating their investment options. It will be important to monitor any changes in the company’s operations and future performance in order to determine the potential return on this investment.
