XD INC(HK:02400) Zhi Tong Cai Jing·2026-01-08 11:46Core Viewpoint - CICC maintains an "outperform" rating for Xindong Company (02400) with a target price of HKD 89.5, indicating a potential upside of 28% based on a 23x P/E for 2026 [1] Company Status - The international version of "Xindong Town" topped the iOS free game charts in multiple regions/countries upon its pre-download launch on January 7, with the official launch on January 8 [2] - The game supports Android, iOS, and PC platforms with account interoperability, and initial download performance exceeded expectations [2] - As of January 8, the game had over one million pre-registrations since testing began in November 2025, and it ranked first in the iOS download charts in 16 countries/regions [2] - The company believes that the overseas user acquisition and monetization process will be smoother compared to the domestic launch due to the game's rich content accumulated over 1.5 years [2] - Future operations will include a collaboration with "My Little Pony" set to launch in February 2026 [2] Growth Opportunities - In addition to "Xindong Town," the company anticipates growth from "Torchlight," which is expected to see a sequential revenue increase in the second half of 2025, continuing into 2026 [2] - The company completed the acquisition of IP rights for "Torchlight" globally, enhancing its influence over the IP [2] - The first season of the product will start on January 16, 2026 [2] - The TapTap platform is expected to achieve double-digit year-on-year growth in advertising revenue due to a rich supply in the gaming industry [2] - ADN business is also expected to continue expanding [2] Shareholder Returns - The company announced a HKD 400 million automatic share buyback plan set to expire on June 4, 2026, with all repurchased shares to be canceled [3] - This buyback reflects the company's long-term growth confidence and is beneficial for enhancing shareholder equity [3]