XD INC(02400) 开源证券·2024-08-31 04:19Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has shown significant growth in H1 2024, with revenue reaching 2.221 billion HKD (up 26.7% year-on-year) and net profit of 205 million HKD (up 127.4% year-on-year). The adjusted net profit was 237 million HKD (up 110% year-on-year). This growth is attributed to new games and increased user engagement on TapTap [4] - The company maintains its profit forecasts for 2024-2026, expecting net profits of 783 million HKD, 1.137 billion HKD, and 1.246 billion HKD respectively, with corresponding EPS of 1.6, 2.4, and 2.6 HKD. The current stock price corresponds to PE ratios of 11.1, 7.6, and 7.0 times for the respective years [4] Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 2.221 billion HKD, with a year-on-year increase of 26.7%. The game business revenue grew to 1.486 billion HKD (up 29.3% year-on-year), driven by new games such as "Starting Muffin" and "Sword of Lily" [4] - TapTap's revenue reached 734 million HKD (up 21.7% year-on-year), benefiting from increased monthly active users and demand from game advertisers [4] Game Launches and Contributions - "Starting Muffin" became the largest revenue contributor in H1 2024, with overseas revenue of 618 million HKD (up 65% year-on-year). The game was launched in mainland China on May 15, 2024, and is expected to contribute to revenue growth in the second half of the year [5] - New games such as "Heart Town" and the international version of "Sword of Lily" are expected to continue driving performance growth [5] User Growth and TapTap Platform - TapTap's monthly active users reached 43.24 million (up 27.3% year-on-year), primarily due to the launch of several major new games. The platform's user base is expected to continue growing with the release of new titles [6] - The company limited ad loading rates in H1 2024 to enhance user experience, which is expected to support long-term growth and monetization potential for the platform [6]