XD INC(02400) 开源证券·2024-08-06 03:31Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company is expected to see significant growth in H1 2024, driven by new game launches and increased revenue from TapTap, with projected revenue of HKD 2.18-2.23 billion, representing a year-on-year growth of 24.4%-27.2% [3] - The net profit for H1 2024 is anticipated to be between HKD 220-270 million, showing a substantial year-on-year increase of 114.0%-162.7% [3] - The report maintains profit forecasts for 2024-2026, estimating net profits of HKD 783 million, HKD 1.137 billion, and HKD 1.246 billion respectively, with corresponding EPS of HKD 1.6, HKD 2.4, and HKD 2.6 [3] Summary by Sections Financial Performance - The company reported a revenue of HKD 3.431 billion in 2022, with a slight decrease to HKD 3.389 billion in 2023. The forecast for 2024 is HKD 6.005 billion, indicating a significant increase [6] - The net profit was negative in 2022 at HKD -554 million, improved to HKD -83 million in 2023, and is projected to turn positive in 2024 with a profit of HKD 783 million [6] - The gross margin is expected to improve from 53.5% in 2022 to 63.7% in 2024, while the net margin is projected to shift from -16.1% in 2022 to 13.0% in 2024 [6] Game Launches and User Growth - The game "Heart Town" has surpassed 20 million downloads on TapTap since its launch on July 17, 2024, and has achieved a rating of 8.6 on the platform [4] - The game "Start Up Muffin" has maintained a position in the top 40 of the App Store's best-selling list since its launch on May 15, 2024, with a mini-game version launched on July 17, 2024 [4] - The self-developed game "Bellflower Sword" launched globally on August 1, 2024, and is currently ranked in the top 20 on the App Store in Japan and South Korea [4] Advertising Revenue and Market Position - The exclusive game "Heart Town" has driven an increase in TapTap's user base, contributing to a rise in advertising revenue due to heightened demand from new game launches [5] - TapTap's ranking on the App Store has reached an all-time high of 11, benefiting from a zero-commission policy and a strong core user base [5]