XD INC(02400) 开源证券·2024-06-16 15:01Investment Rating - The investment rating for the company is "Buy" (maintained) [2][33]. Core Views - The performance of the self-developed game "Let's Go Muffin" is impressive and is expected to drive rapid growth in the company's performance. The game has maintained a position in the top 10 of the iOS bestseller list in Hong Kong and Taiwan since its launch on January 24, 2024, with revenue reaching 460 million RMB by the end of May. The game also ranked 4th in the iOS bestseller list in China after its launch on May 15, 2024, with an estimated revenue of 300 million RMB in May [3][12][34]. Summary by Sections 1. Performance of "Let's Go Muffin" - "Let's Go Muffin" has shown strong performance in both Hong Kong and Taiwan, consistently ranking in the top 10 of the iOS bestseller list. The game generated 460 million RMB in revenue in the region by the end of May 2024 [11][12]. - The game achieved a peak ranking of 4th in the iOS bestseller list in China, only behind major titles like "DNF Mobile," "Honor of Kings," and "Peacekeeper Elite" [3][12]. 2. R&D and Publishing Capabilities - The company has improved its R&D and publishing capabilities, which may enhance the success rate of its products. The return of Huang Xiwei, the original co-founder of TapTap, is expected to further strengthen the company's publishing capabilities [4][21]. 3. Growth of TapTap - TapTap's traffic and user base continue to grow, with several exclusive and major games driving further increases. The platform achieved a historical high ranking of 13 in the iOS free app list in April 2024 [5][26]. - The unique zero-revenue-sharing model of TapTap is expected to enhance its position in game publishing, leading to rapid revenue growth and accelerated profit release [5][28]. 4. Financial Forecasts and Investment Recommendations - The company is expected to see significant revenue growth driven by "Let's Go Muffin" and other reserve games, with projected net profits of 783 million, 1.137 billion, and 1.246 billion RMB for 2024-2026, respectively [3][34]. - The estimated earnings per share (EPS) for the same period are projected to be 1.6, 2.4, and 2.6 RMB, with corresponding price-to-earnings (P/E) ratios of 11.6, 8.0, and 7.3 times [3][34].