XD INC(HK:02400) SINOLINK SECURITIES·2026-01-12 06:59Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][11]. Core Insights - The international version of the game "Heartopia" has achieved impressive initial download numbers, ranking first in the Apple Store free charts in 10 countries and within the top 20 in 30 countries as of January 11, 2026 [3]. - The game has accumulated over 1.6 million downloads on Google Play and approximately 1 million downloads on the Apple Store, with total downloads expected to exceed 3 million when including PC downloads [3]. - The game's strong user base and social interaction focus are crucial for its long-term monetization potential, supported by its early download success [3]. - The game's presence on social media platforms is growing, with significant increases in followers and engagement, which is expected to further expand its user base [3]. - The international version of "Heartopia" is projected to surpass the domestic version in active users and annual revenue, potentially becoming the company's top revenue-generating game [4]. Financial Projections - The company forecasts net profits of 1.704 billion, 2.119 billion, and 2.553 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 20.16, 16.21, and 13.45 [4]. - Revenue is expected to grow from 3.389 billion RMB in 2023 to 8.843 billion RMB by 2027, reflecting a compound annual growth rate (CAGR) of approximately 14.20% [9]. - The net profit margin is projected to improve significantly, with net profit growth rates of 85.00%, 1077.29%, and 109.95% for the years 2024, 2025, and 2026 respectively [9].