XD INC(02400) 国元证券·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Insights - The company achieved a total revenue of 3.389 billion CNY in 2023, with a gross profit of 2.068 billion CNY, reflecting a year-on-year increase of 12.7% and a gross margin of 61.03%, up by 7.54 percentage points from 2022 [2]. - The gaming segment generated revenue of 2.092 billion CNY, accounting for 61.72% of total revenue, which is a decrease of 9.77 percentage points year-on-year. The TapTap platform's revenue reached 1.297 billion CNY, growing by 32.63% year-on-year, increasing its revenue share to 38.28% [2]. - The company has focused on self-developed games, with several titles launched in 2023 and more expected in 2024, which are anticipated to drive future revenue growth [3]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 3.389 billion CNY, a slight decline of 1.22% compared to 2022. The adjusted EBITDA was 158 million CNY, marking a return to profitability [2][8]. - The company’s R&D expenditure was 1.016 billion CNY, with a R&D expense ratio of 29.97%, down by 7.45 percentage points year-on-year [2]. User Engagement - The average monthly active users for the company's online games reached 12.446 million, with 1.307 million average monthly paying users in 2023 [3]. - The TapTap platform's average monthly active users were 35.81 million, a decrease of 13.6% year-on-year, but showed signs of recovery in Q4 2023 [3]. Future Outlook - The company is expected to achieve net profits of 294 million CNY, 383 million CNY, and 475 million CNY for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 0.61, 0.80, and 0.99 CNY per share [4][8].