Sinolink Securities issued a research report which stated that XD Inc. (02400) disclosed positive profit forecast for the first half of 2024 on August 5th, 2024. The revenue for the first half of 2024 is expected to be between 21.8 to 22.3 billion yuan, up 24.4% to 27.2% year-on-year. The net income is expected to be between 2.2 to 2.7 billion yuan, up 114% to 162.7% year-on-year.
In addition, the company's self-developed new game "Heartbeat Town" was launched on July 17th, and as of August 5th, according to Qimai data, it maintained a top 3 ranking in the IOS game free list and rose to 22nd in the IOS game bestseller list. The bank believes that the early operation strategy of the game may be more user-driven, and the subsequent revenue is expected to continue to rise after the initial user acquisition is completed.
In addition, the company's self-developed new games "Let's Go, Miffy" and "Heartbeat Town" are exclusive games on the TapTap platform for Android channel. As of August 5th, "Let's Go, Miffy" had 1.97 million downloads and a score of 7.1 on the TapTap platform. "Heartbeat Town" had 19.87 million downloads and a score of 8.7 on the TapTap platform. The two self-developed new games are expected to drive user growth on the TapTap platform. In 2024, many new games from large game companies will be launched, such as "DNF" mobile game, "Endless Frontier Mobile Game", and "Zero Zone". TapTap, as a vertical game platform, is expected to benefit.
The bank expects the company's revenue for 2024/2025/2026 to be 4.97/5.68/6.34 billion yuan, and the net income attributable to shareholders to be 0.505/0.664/0.764 billion yuan, with a current stock price corresponding to 2024/2025/2026 PE ratios of 20.28/15.42/13.4X, maintaining a "buy" rating.