Understanding the Market | XD INC rose over 6% as the company's new game drives high growth, Citigroup indicates that more catalysts may be realized in the second half of the year

Zhitong
2025.04.17 01:47
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XD INC rose over 6%, as of the time of writing, up 6.31%, priced at HKD 31.75, with a transaction volume of HKD 60.3377 million. In terms of news, Citigroup's previous research report pointed out that XD INC's performance in the second half of last year was basically in line with expectations, with revenue increasing by 71% year-on-year to RMB 2.79 billion, and full-year profit within the median of the guidance range. Management's comments on TapTap users and monetization strategies suggest that XD INC still represents a unique exposure to the TapTap ecosystem, as well as the advantages of a dual engine of games and advertising. The bank noted that more catalysts may be realized in the second half of the year, specifically the mid-year launch of "Yise" and the overseas version of "XD Town" to be launched in the second half of the year. Ping An International stated that thanks to contributions from several self-developed new games, the company's revenue in 2H24 is expected to grow by 71% year-on-year, with gross margin improving by 8.0pp to 71.0%; adjusted net profit is projected to be RMB 640 million, with an adjusted net profit margin of 22.9%. As the company's major new games are successively launched in key overseas markets, the overseas market is expected to become an important driver of short-term growth for the company's gaming business

According to Zhitong Finance APP, XD INC (02400) rose over 6%, with a current increase of 6.31%, priced at HKD 31.75, and a trading volume of HKD 60.3377 million.

In terms of news, Citigroup's previous research report pointed out that XD INC's performance in the second half of last year was basically in line with expectations, with revenue increasing by 71% year-on-year to RMB 2.79 billion, and full-year profit within the median of the guidance range. The management's comments on TapTap users and monetization strategies indicate that the company still represents a unique exposure to the TapTap ecosystem, as well as the advantages of a dual engine of games and advertising. The bank noted that more catalysts may be realized in the second half of the year, including the mid-year launch of "Yise" and the overseas version of "XD Town" to be launched in the second half of the year.

Puyin International stated that thanks to the contribution of several self-developed new games, the company's revenue in the second half of 2024 is expected to grow by 71% year-on-year, with a gross profit margin improving by 8.0 percentage points to 71.0%; adjusted net profit is projected to be RMB 640 million, with an adjusted net profit margin of 22.9%. As the company's major new games are gradually launched in key overseas markets, the overseas market is expected to become an important driver of short-term growth for the company's gaming business

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