XD INC(HK:02400) Zhi Tong Cai Jing·2025-08-05 01:30Core Viewpoint - The report from CICC indicates an upward revision of the net profit forecast for Xindong Company (02400) for 2025 and 2026 by 66% and 81% to 1.65 billion and 1.95 billion yuan respectively, reflecting a strong performance from TapTap and better-than-expected game results [1] Group 1: Financial Performance - The company forecasts a revenue of no less than 3.05 billion yuan for the first half of 2025, representing a year-on-year increase of over 37% [1] - The net profit for the same period is expected to be no less than 790 million yuan, showing a year-on-year increase of over 215% [1] - The performance is better than both the company's and market's expectations, with a previous net profit estimate of 500 million yuan [1] Group 2: Game Performance and Releases - The revenue growth in the first half of 2025 is primarily driven by the games "Ragnarok M: Beginning" and "Heart Town," along with "Torchlight" improving gross margin levels [1] - For the second half of 2025, profit growth is expected from the anniversary celebration of "Heart Town" and the launch of "Iser" [2] - The core product "Ragnarok RO: Eternal Love" is set for its first round of testing in December 2025, with a pre-release already launched on TapTap [2] Group 3: TapTap Platform Development - TapTap has shown steady revenue growth in the first half of 2025, driven by improvements in advertising algorithms and increased user engagement [3] - The company aims to enhance its platform with new features and a desktop version, focusing on major game updates and user experience [3] - Future developments will include a mini-game platform and AI game creation tools [3]