XD, Inc. (HK:2400)
:2400
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XD, Inc.
(2400)
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Rating:66Neutral
Price Target:
HK$59.00
▼(-8.10% Downside)
Action:Reiterated
Date:05/02/26
The score is supported by a strong financial turnaround (higher profitability and cash flow with much lower leverage), but is held back by weak technicals (price below key moving averages and negative MACD) and only middling valuation support (P/E ~18.7 and ~1.23% yield).
Positive Factors
Material deleveraging and strong ROE
The company has sharply reduced leverage to near-zero D/E (~0.03 in 2025) while delivering very strong ROE (~32–39%). This materially improves financial flexibility, lowers default and refinancing risk, and supports durable capital allocation (investment, buybacks, dividends) over the next several months.
Negative Factors
Top-line inconsistency and recent revenue decline
Revenue dipped in 2025 after only modest growth in 2024, implying that recent earnings gains were driven more by efficiency and mix than by demand expansion. If top-line momentum does not recover, margins and cash generation could be harder to sustain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging and strong ROE
The company has sharply reduced leverage to near-zero D/E (~0.03 in 2025) while delivering very strong ROE (~32–39%). This materially improves financial flexibility, lowers default and refinancing risk, and supports durable capital allocation (investment, buybacks, dividends) over the next several months.
Read all positive factors
XD, Inc. (2400) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$26.67B
Dividend Yield1.18%
Average Volume (3M)2.89M
Price to Earnings (P/E)9.3
Beta (1Y)1.23
Revenue Growth14.94%
EPS Growth86.33%
CountryHK
Employees1,400
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)3.16
Shares Outstanding492,434,170
10 Day Avg. Volume2,616,294
30 Day Avg. Volume2,886,034
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)7.64
Price to Sales (P/S)5.05
P/FCF Ratio20.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$91.88Price Target Upside43.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)3.91
Revenue Forecast (FY)HK$6.75B
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 inf...
XD, Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.76B | 5.01B | 3.39B | 3.43B | 2.70B |
| Gross Profit | 4.25B | 3.48B | 2.07B | 1.84B | 1.23B |
| EBITDA | 1.68B | 981.28M | 228.75M | -484.03M | -932.38M |
| Net Income | 1.54B | 811.53M | -83.04M | -553.50M | -863.81M |
Balance Sheet | |||||
| Total Assets | 5.22B | 3.92B | 4.41B | 4.80B | 5.04B |
| Cash, Cash Equivalents and Short-Term Investments | 3.77B | 2.91B | 3.35B | 3.59B | 3.96B |
| Total Debt | 122.43M | 159.17M | 1.76B | 2.10B | 1.82B |
| Total Liabilities | 1.17B | 1.21B | 2.54B | 2.89B | 2.66B |
| Stockholders Equity | 3.81B | 2.51B | 1.71B | 1.89B | 2.30B |
Cash Flow | |||||
| Free Cash Flow | 1.39B | 1.25B | 218.99M | -364.98M | -566.96M |
| Operating Cash Flow | 1.71B | 1.28B | 235.45M | -327.88M | -475.20M |
| Investing Cash Flow | -359.69M | 17.42M | 343.86M | 230.61M | -986.01M |
| Financing Cash Flow | -396.08M | -1.74B | -500.70M | -148.15M | 2.39B |
XD, Inc. Technical Analysis
Negative
64.20
Price Trends
64.93
Negative
70.69
Negative
71.51
Negative
Market Momentum
-2.58
Positive
31.01
Neutral
8.06
Positive
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 64.2 is above the 20-day moving average (MA) of 61.67, below the 50-day MA of 64.93, and below the 200-day MA of 71.51, indicating a bearish trend. The MACD of -2.58 indicates Positive momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 8.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2400.
XD, Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$4.12B | 4.15 | 17.91% | 3.82% | -4.19% | 0.41% | |
66 Neutral | HK$26.67B | 9.33 | 44.75% | 1.18% | 14.94% | 86.33% | |
61 Neutral | HK$970.48M | 4.33 | 7.59% | ― | 7.36% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | HK$1.78B | 9.51 | 6.38% | ― | -27.41% | 138.08% | |
56 Neutral | HK$1.54B | 29.17 | 2.16% | ― | 69.97% | ― | |
53 Neutral | HK$1.81B | -0.88 | 42.91% | 3.01% | -5.58% | -118.96% |
* Communication Services Sector Average
HK:2400
XD, Inc.
54.85
16.12
41.61%
HK:0799
IGG
3.59
0.63
21.08%
HK:0434
Boyaa Interactive International
2.65
-3.07
-53.65%
HK:6633
Qingci Games, Inc.
2.54
-0.02
-0.78%
HK:6820
FriendTimes Inc.
0.45
-0.12
-21.60%
HK:0797
7Road Holdings Limited
0.55
0.21
61.76%
XD, Inc. Corporate Events
XD Inc. Sets 2026 AGM to Approve Governance Matters and New Share Issuance Mandate
Apr 29, 2026
XD Inc. has convened its 2026 annual general meeting for May 28, 2026 in Shanghai, where shareholders will review the audited consolidated financial statements for the year ended December 31, 2025 and consider the reports of the board and external...
XD Inc. Corrects Clerical Error in Share Option Grant Disclosure
Apr 19, 2026
XD Inc. issued a clarification regarding its recent grant of share options under its share option plan adopted in June 2021, correcting an inadvertent clerical error in an earlier announcement. The company confirmed that a total of 59,923 share op...
XD Inc. Grants New Share Options with Major Allocation to CEO Huang
Apr 17, 2026
XD Inc. has granted 59,923 share options under its 2021 share option plan to eligible directors and full-time employees, with each option allowing subscription for one ordinary share at an exercise price of HK$64.20. All options vest immediately o...
XD Inc. Profit Nearly Doubles in 2025 Despite User Declines in Gaming
Mar 27, 2026
XD Inc. reported strong audited results for the year ended Dec. 31, 2025, posting a 15% rise in revenue to RMB5.76 billion and an 86% jump in profit to RMB1.66 billion, with profit attributable to shareholders nearly doubling. Adjusted profit metr...
XD Inc. Sets March 27 Board Meeting to Approve 2025 Annual Results and Consider Final Dividend
Mar 17, 2026
XD Inc. has scheduled a board meeting for March 27, 2026, to review and approve the audited annual results for the year ended December 31, 2025. The board will also consider the publication of these results and decide whether to recommend a final ...
XD Inc. Forecasts 77% Profit Surge on Strong Games and TapTap Growth
Mar 5, 2026
XD Inc. expects to report revenue of at least RMB5.71 billion for 2025, up about 13.9% from 2024, and net profit of no less than RMB1.58 billion, a jump of roughly 77.4% year on year. The anticipated growth is attributed to strong performance from...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.