XD INC(02400) 东吴证券·2025-04-01 06:56Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 50.12 billion yuan in 2024, a year-on-year increase of 47.89%, and a net profit of 8.12 billion yuan, marking a turnaround from a loss of 0.83 billion yuan in 2023. The company also announced a final dividend of 0.4 HKD per share [8] - The self-developed games have significantly improved gross margins, with a notable revenue contribution from titles like "Start Your Muffin" and "Lily of the Valley." The upcoming game "Heart Town" is expected to continue this trend [8] - TapTap's monthly active users (MAU) reached 44.05 million in China, a year-on-year increase of 23.03%, while international MAU was 503,000, a decrease of 13.02%. The growth in domestic MAU is attributed to a rich supply of new games and effective marketing strategies [8] - The company has demonstrated effective cost control, with an overall gross margin of 69.40% in 2024, up 8.37 percentage points year-on-year. The net profit margin also saw a significant increase to 16.19% [8] - The report projects net profits for 2025-2027 to be 9.80 billion, 10.69 billion, and 11.61 billion yuan respectively, with corresponding P/E ratios of 15, 14, and 13 times [8] Financial Summary - Total revenue for 2023 was 3.39 billion yuan, with projections of 5.01 billion yuan for 2024, reflecting a growth rate of 47.89% [1] - The company’s net profit for 2024 is projected at 811.53 million yuan, with a year-on-year growth of 20.74% for 2025 [1] - The earnings per share (EPS) is expected to rise from 1.65 yuan in 2024 to 2.36 yuan by 2027 [1]