XD, Inc. (2400) AI Stock Analysis

• Market Cap: HK$38.45B
• Dividend Yield: 0.51%
• Average Volume (3M): 4.28M
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.27
• Revenue Growth: 44.92%
• EPS Growth: N/A
• Country: HK
• Employees: 1,400
• Sector: Communication Services
• Sector Strength: 91
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.36
• Shares Outstanding: 493,283,780
• 10 Day Avg. Volume: 3,618,545
• 30 Day Avg. Volume: 4,277,294
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$63.30
• Price Target Upside: -20.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: HK$77.00 ▼(-2.90% Downside)

XD, Inc.'s strong financial performance and technical indicators drive the overall score. The company's revenue growth and profitability improvements are significant strengths, though cash flow challenges need addressing. The stock's bullish momentum is tempered by overbought technical signals, and the valuation suggests it is relatively expensive.

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 primarily through the sale of in-game purchases and virtual goods within its mobile and online gaming platforms. The company employs a free-to-play model, where users can download and play games at no cost, but are encouraged to make in-game purchases to enhance their experience. Additional revenue streams include advertising within its games and collaborations with other companies for licensing and distribution. Strategic partnerships with technology and entertainment firms also contribute to its earnings by expanding its reach and enhancing its offerings.

XD, Inc. Financial Statement Overview

Summary

XD, Inc. shows promising growth in revenue and profitability, supporting its position in the industry. The balance sheet reflects strong financial stability with effective capital structure management. However, cash flow challenges indicate a 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.01B	3.39B	3.43B	2.70B	2.85B
Gross Profit	3.48B	2.07B	1.84B	1.23B	1.53B
EBITDA	981.28M	228.75M	-484.03M	-932.38M	135.59M
Net Income	811.53M	-83.04M	-553.50M	-863.81M	9.14M
Balance Sheet
Total Assets	3.92B	4.41B	4.80B	5.04B	3.34B
Cash, Cash Equivalents and Short-Term Investments	2.91B	3.35B	3.59B	3.96B	2.32B
Total Debt	159.17M	1.76B	2.10B	1.82B	129.99M
Total Liabilities	1.21B	2.54B	2.89B	2.66B	764.62M
Stockholders Equity	2.51B	1.71B	1.89B	2.30B	2.30B
Cash Flow
Free Cash Flow	1.25B	218.99M	-364.98M	-566.96M	275.74M
Operating Cash Flow	1.28B	235.45M	-327.88M	-475.20M	348.19M
Investing Cash Flow	17.42M	343.86M	230.61M	-986.01M	387.19M
Financing Cash Flow	-1.74B	-500.70M	-148.15M	2.39B	330.40M

XD, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2400, the sentiment is Positive. The current price of 79.3 is above the 20-day moving average (MA) of 70.90, above the 50-day MA of 57.98, and above the 200-day MA of 37.44, indicating a bullish trend. The MACD of 6.52 indicates Positive momentum. The RSI at 76.34 is Negative, neither overbought nor oversold. The STOCH value of 93.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2400.

XD, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2400	67 Neutral	HK$38.45B	42.31	38.63%	0.51%	44.92%	―
Sector *	60 Neutral	$43.56B	3.79	-13.01%	4.09%	1.89%	-42.25%
IGGGF	―	$765.62M	9.80	19.85%	3.00%	―	―
BOYAF	―	$659.49M	4.88	34.13%	1.63%	―	―
6633	61 Neutral	HK$2.32B	41.82	2.87%	―	-31.60%	―
0797	47 Neutral	HK$1.54B	―	-4.36%	―	-52.38%	43.08%
6820	45 Neutral	HK$1.53B	―	-4.15%	―	7.55%	64.78%

XD, Inc. Corporate Events

XD Inc. Acquires 5.30% Stake in Target Company Through Share Purchase Agreement

XD Inc., through its wholly-owned subsidiary, has entered into a Share Purchase Agreement to acquire 7,086,420 Series B1 Preferred Shares of a target company for US$14,000,000, representing a 5.30% equity interest. This transaction, classified as a connected transaction under Hong Kong’s Listing Rules due to the target company’s ownership by a non-executive director of XD Inc., does not require independent shareholders’ approval but is subject to announcement and reporting requirements.

The most recent analyst rating on (HK:2400) stock is a Buy with a HK$60.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

XD Inc. Projects Significant Profit Growth for First Half of 2025

XD Inc. has issued a positive profit alert, announcing an expected revenue of no less than RMB3,050 million for the first half of 2025, marking a 37% increase compared to the same period in 2024. The net profit is projected to reach at least RMB790 million, a 215% rise from the previous year. This growth is attributed to the strong performance of its self-developed games and the sustained growth of TapTap, despite some offsetting factors such as decreased revenue from certain existing games and increased performance-based compensation.

The most recent analyst rating on (HK:2400) stock is a Buy with a HK$60.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

XD Inc. Grants Share Options to Key Executives and Employees

XD Inc. has announced the grant of 152,020 share options under its Share Option Plan to eligible participants, including directors and employees. The options, priced at HK$50.90 per share, are valid for ten years and vested immediately upon grant. This move, particularly the grant of 122,500 options to Chairman and CEO Mr. HUANG Yimeng, underscores the company’s commitment to aligning leadership incentives with shareholder interests.

The most recent analyst rating on (HK:2400) stock is a Buy with a HK$25.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

XD Inc. Successfully Concludes 2025 AGM with All Resolutions Passed

XD Inc. held its 2025 Annual General Meeting in Shanghai, where all proposed resolutions were passed by poll. The meeting included the approval of audited financial statements, declaration of a final dividend, and re-election of directors. The resolutions received overwhelming support, indicating strong shareholder confidence in the company’s management and strategic direction.

The most recent analyst rating on (HK:2400) stock is a Buy with a HK$25.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.