XD, Inc. (2400) AI Stock Analysis

• Market Cap: HK$34.02B
• Dividend Yield: 1.14%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.26
• Revenue Growth: 51.87%
• EPS Growth: 4031.49%
• Country: HK
• Employees: 1,400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.69
• Shares Outstanding: 494,874,100
• 10 Day Avg. Volume: 2,616,294
• 30 Day Avg. Volume: 2,886,034
• PEG Ratio: -0.01
• Price to Book (P/B): 4.51
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 9.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$92.78
• Price Target Upside: 37.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$74.00 ▲(9.96% Upside)

XD, Inc. demonstrates strong financial performance with significant revenue growth and financial stability, but faces challenges in cash flow generation. Technical analysis indicates bearish momentum, and the valuation is fair with a moderate P/E ratio. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strong Equity Base

A strong equity base with a high equity ratio suggests financial stability and prudent leverage management, providing a solid foundation for future growth and resilience against market volatility.

Profitability Improvements

Turning a net profit margin positive indicates improved cost management and operational efficiency, which can lead to sustained profitability and shareholder value enhancement over time.

Revenue Growth

The company's revenue growth of 48% from 2023 to 2024 highlights its ability to expand its market presence and enhance product adoption, supporting long-term business sustainability.

Negative Factors

EBIT and EBITDA Margin Recovery

While improving, the recovery of EBIT and EBITDA margins indicates potential volatility in operational efficiency, which may impact consistent profitability and long-term financial performance.

Asset and Liability Fluctuations

Variability in assets and liabilities can signal inefficiencies in asset utilization and liability management, potentially affecting the company's financial health and operational stability.

Cash Flow Challenges

Zero operating and free cash flow indicate difficulties in converting income into cash, which can hinder the company's ability to invest in growth opportunities and manage financial obligations effectively.

XD, Inc. Business Overview & Revenue Model

Company Description

XD Inc., an investment holding company, develops, publishes, operates, and distributes mobile and web games in Mainland China and internationally. The company also operates TapTap, a platform for gamers and game developers, as well as provides information services. As of December 31, 2021, its game portfolio comprised 19 online games and 19 premium games. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

XD, Inc. generates revenue through multiple channels, including software licensing, subscription-based models, and professional services. The company offers its flagship products through both one-time purchase licenses and ongoing subscriptions, providing a steady stream of recurring revenue. Additionally, XD, Inc. capitalizes on professional services such as consulting, training, and customization to meet specific client needs, thereby enhancing customer satisfaction and loyalty. Strategic partnerships with other tech firms and educational institutions also contribute to its earnings by expanding market reach and creating collaborative offerings.

XD, Inc. Financial Statement Overview

Summary

XD, Inc. shows promising growth in revenue and profitability, with strong financial stability indicated by a healthy equity base and low debt-to-equity ratio. However, challenges in cash flow generation highlight the need for better cash conversion and operational cash generation.

Income Statement

The company has demonstrated strong revenue growth with a 48% increase from 2023 to 2024. Gross profit margin improved significantly, indicating better cost management. Net profit margin turned positive, showing a substantial recovery from previous losses. However, EBIT and EBITDA margins are still recovering, suggesting ongoing improvements but potential volatility in operational efficiency.

Balance Sheet

The balance sheet reflects a healthy equity base with a strong equity ratio of 64%, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent leverage management. Return on Equity (ROE) turned positive, enhancing shareholder value. However, fluctuations in total assets and liabilities over recent years highlight potential concerns about asset utilization and liability management.

Cash Flow

The cash flow statement shows challenges with operating cash flow and free cash flow, particularly as both metrics were zero in the most recent year. Despite previous improvements in free cash flow, the lack of growth poses concerns about cash generation capabilities. The company needs to focus on converting income into cash more effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.87B	5.01B	3.39B	3.43B	2.70B	2.85B
Gross Profit	4.23B	3.48B	2.07B	1.84B	1.23B	1.53B
EBITDA	1.57B	981.28M	228.75M	-484.03M	-932.38M	135.59M
Net Income	1.36B	811.53M	-83.04M	-553.50M	-863.81M	9.14M
Balance Sheet
Total Assets	4.51B	3.92B	4.41B	4.80B	5.04B	3.34B
Cash, Cash Equivalents and Short-Term Investments	3.18B	2.91B	3.35B	3.59B	3.96B	2.32B
Total Debt	133.41M	159.17M	1.76B	2.10B	1.82B	129.99M
Total Liabilities	1.30B	1.21B	2.54B	2.89B	2.66B	764.62M
Stockholders Equity	2.99B	2.51B	1.71B	1.89B	2.30B	2.30B
Cash Flow
Free Cash Flow	898.50M	1.25B	218.99M	-364.98M	-566.96M	275.74M
Operating Cash Flow	900.93M	1.28B	235.45M	-327.88M	-475.20M	348.19M
Investing Cash Flow	-16.40M	17.42M	343.86M	230.61M	-986.01M	387.19M
Financing Cash Flow	-271.63M	-1.74B	-500.70M	-148.15M	2.39B	330.40M

XD, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2400, the sentiment is Negative. The current price of 67.3 is below the 20-day moving average (MA) of 68.80, below the 50-day MA of 71.73, and above the 200-day MA of 54.92, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2400.

XD, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0799	70 Outperform	$4.26B	7.43	17.91%	3.88%	4.02%	-23.98%
0434	67 Neutral	HK$2.75B	2.14	42.91%	2.76%	10.44%	345.95%
2400	61 Neutral	HK$34.02B	22.49	57.06%	1.14%	51.87%	4031.49%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6633	56 Neutral	HK$2.24B	27.30	4.10%	―	-41.86%	―
6820	51 Neutral	HK$1.16B	16.11	5.50%	―	30.71%	―
0797	41 Neutral	HK$2.03B	-51.72	-2.25%	―	6.33%	87.05%

XD, Inc. Corporate Events

XD, Inc. Enters Strategic Partnership with Golden Arc

XD, Inc. announced a strategic cooperation with Golden Arc, involving a strategic partnership and provision of term loan facilities amounting to US$40 million. This cooperation aims to enhance industry influence and market value through mutual benefit, resource sharing, and joint R&D projects, potentially impacting the company’s market positioning and stakeholder interests.

XD Inc. Grants Share Options to Key Personnel

XD Inc. announced the grant of 143,694 share options under its Share Option Plan to eligible participants, including directors and employees, with an exercise price of HK$71.37 per share. This grant, particularly the allocation of 122,500 options to the company’s chairman and CEO, Mr. HUANG Yimeng, underscores the company’s commitment to aligning management interests with shareholder value, potentially impacting its market positioning by incentivizing key personnel.