XD INC(02400)2025-04-18 01:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][11] Core Views - The company is expected to benefit from the "game + platform" flywheel effect, driving long-term growth [3] - The issuance of stock options to core management and employees strengthens interest alignment and supports strategic goals [3] - The company maintains its profit forecasts for 2025-2027, with expected net profits of 1.286 billion, 1.592 billion, and 1.757 billion respectively [3] Financial Summary and Valuation Metrics - Revenue projections are as follows: 3,389 million in 2023, 5,012 million in 2024, 6,148 million in 2025, 7,205 million in 2026, and 7,806 million in 2027, with year-over-year growth rates of 47.9% in 2024 and 22.7% in 2025 [7] - The net profit is projected to turn positive in 2024, reaching 812 million, and continuing to grow to 1.286 billion in 2025 [7] - The company’s gross margin is expected to improve from 61.0% in 2023 to 71.9% in 2027, indicating strong operational efficiency [7] - The expected EPS for 2025 is 2.6, with a corresponding P/E ratio of 11.3 [7] Game Performance and Growth Drivers - The game "Heart Town" has maintained a position in the top 100 of the iOS bestseller list since 2025, with an international version expected to launch in the second half of 2025 [4] - The game "Ragnarok RO: Beginner's Server" has shown strong performance in Southeast Asia and is expected to boost the revenue of the older game "Ragnarok RO" [4] - Upcoming game releases, including "Iser" and "RO2," are anticipated to further drive growth in the gaming segment [4] TapTap Platform Development - The development of the TapTap PC version is underway, which is expected to expand the user base and enhance monetization opportunities [5] - The platform currently features games from major developers, indicating a strong content offering that can attract more users [5]