XD INC(HK:02400) KAIYUAN SECURITIES·2024-07-02 21:01Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The public beta of "Heart Town" is scheduled for July 17, which is expected to continue driving growth. The game has already garnered over 2.3 million pre-registrations on TapTap with a rating of 9.0, indicating strong interest. The game targets female and casual players, which may contribute to revenue growth and user expansion for TapTap [3] - "Let's Go Muffin" has shown stable performance since its launch on May 15, maintaining a position in the top 10 of the iOS bestseller list, which is anticipated to contribute significantly to the company's revenue [4] - Multiple games are set to be exclusively released on TapTap, including "The Time of Posia" and "The Legend of the Great Hero," which may enhance user engagement and revenue growth due to TapTap's favorable zero-revenue-sharing policy [5] Financial Summary - The company's projected financials for 2024-2026 include: - Revenue: 6,005 million in 2024, 7,313 million in 2025, and 7,955 million in 2026 - Net profit: 783 million in 2024, 1,137 million in 2025, and 1,246 million in 2026 - EPS: 1.6 in 2024, 2.4 in 2025, and 2.6 in 2026 - Current PE ratios are 10.4 for 2024, 7.2 for 2025, and 6.5 for 2026, indicating a favorable valuation outlook [6]