XD, Inc. (2400) AI Stock Analysis

• Market Cap: HK$41.84B
• Dividend Yield: 1.18%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.16
• 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): 1.70
• Shares Outstanding: 495,008,970
• 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$96.35
• Price Target Upside: 47.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$90.00 ▲(37.61% 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 revenue growth

Sustained high top-line expansion demonstrates strong product-market fit and accelerating customer adoption. Over the medium term, this growth supports scale economies, continued R&D and product investment, and stronger competitive positioning that can compound market share gains.

Healthy balance sheet

A robust equity base and low leverage provide financial flexibility to fund organic growth, strategic investments, or acquisitions without heavy refinancing risk. This capital structure improves resilience to downturns and preserves optionality for multi-quarter strategic initiatives.

Recurring revenue mix

A mix of subscriptions, licensing and services creates recurring revenue, higher customer lifetime value, and stronger retention mechanics. This structural revenue base improves predictability and supports long-term planning, upsell strategies, and stable cash inflows when conversion improves.

Negative Factors

Weak cash conversion

Zero operating and free cash flow despite reported profits indicates a material cash conversion shortfall. Persisting weak cash generation will constrain capital allocation, hamper reinvestment and debt servicing, and raise execution risk until cash conversion metrics sustainably recover.

Asset and liability volatility

Volatile asset and liability trends suggest uneven asset utilization and liability management. Over time this can stress working capital, increase financing needs or costs, and complicate capacity planning, making consistent operational execution and cash flow forecasting harder.

Margins still recovering

Recovering EBIT and EBITDA margins mean operational efficiency is not fully restored, leaving profitability and cash generation vulnerable to cost inflation or revenue variability. Durable margin improvement is necessary to convert revenue gains into reliable free cash flow.

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: Positive
• Last Price: 65.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 65.4 is below the 20-day moving average (MA) of 70.63, below the 50-day MA of 68.73, and above the 200-day MA of 59.40, indicating a bullish trend. The MACD of 4.89 indicates Negative momentum. The RSI at 80.80 is Negative, neither overbought nor oversold. The STOCH value of 93.95 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
0434	75 Outperform	HK$2.80B	2.17	42.91%	3.01%	10.44%	345.95%
0799	70 Outperform	HK$4.49B	7.83	17.91%	3.82%	4.02%	-23.98%
2400	61 Neutral	HK$41.84B	27.66	57.06%	1.18%	51.87%	4031.49%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6820	59 Neutral	HK$1.26B	16.72	5.50%	―	30.71%	―
6633	56 Neutral	HK$2.19B	26.71	4.10%	―	-41.86%	―
0797	41 Neutral	HK$1.68B	-42.07	-2.25%	―	6.33%	87.05%

XD, Inc. Corporate Events

XD Inc. Details Profit Forecast Behind US$37 Million IP Asset Acquisition

XD Inc. has provided further details on a previously announced asset transfer agreement under which its subsidiary XD Entertainment is acquiring intellectual property assets from various sellers, with the valuation of these IP rights determined at US$37.35 million using an income-based, relief-from-royalty approach. The company disclosed that the valuation constitutes a profit forecast under Hong Kong listing rules and outlined key assumptions underpinning the forecast, including a seven-year useful life for the IP, an 8% royalty rate, full revenue attribution to the IP, and stable operational, legal, staffing, and tax conditions for the underlying business Runic, thereby clarifying the financial basis and regulatory compliance of the transaction for investors and other stakeholders.

The most recent analyst rating on (HK:2400) stock is a Hold with a HK$74.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

XD Inc. Grants 151,021 Share Options, Majority to Chairman and CEO

XD Inc. has granted a total of 151,021 share options under its 2021 share option plan to directors and full-time employees, with each option entitling the holder to subscribe for one ordinary share at an exercise price of HK$84.15, matching the closing price on the grant date of 14 January 2026. The options, which vest immediately and are valid for ten years, include 122,500 options awarded to chairman and CEO Huang Yimeng, a substantial shareholder, with the grant having been approved by the company’s independent non-executive directors in line with Hong Kong listing rules; the company emphasized that no financial assistance was provided to grantees and that no individual exceeds the regulatory 1% grant limit, underscoring a structured approach to equity-based incentives for key management and staff.

The most recent analyst rating on (HK:2400) stock is a Hold with a HK$74.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

XD Inc. Launches HK$400 Million Automatic Share Buy-Back Programme with Regulatory Waiver

XD Inc. has launched an automatic share buy-back programme of up to HK$400 million, appointing an independent broker to repurchase its shares on the Hong Kong Stock Exchange under pre-set parameters and without day-to-day influence from the company or its connected persons. The programme, which can run until 4 June 2026 or end earlier if the full HK$400 million is deployed, is supported by a waiver from the Stock Exchange allowing buy-backs to continue during normally restricted periods around results announcements, thereby giving XD Inc. greater flexibility to optimise execution and potentially support its share price and capital management objectives.

The most recent analyst rating on (HK:2400) stock is a Hold with a HK$74.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

XD Inc. Buys Torchlight Game Assets in Discloseable Deal

XD Inc. has announced that its wholly owned subsidiary XD Entertainment signed an asset transfer agreement on 29 December 2025 with sellers Runic and Arc Games, along with Golden Arc, to acquire all rights, title and interest in a portfolio of gaming-related assets. The deal covers the Torchlight game franchise, associated technology including source code, documentation, intellectual property, related contracts and official social media accounts with their followers and analytics, and is classified under Hong Kong listing rules as a discloseable transaction, indicating a moderate but strategically meaningful investment that could strengthen XD’s content library, bolster its game development capabilities and enhance its competitive position in the global gaming market.

The most recent analyst rating on (HK:2400) stock is a Hold with a HK$74.00 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.

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.

The most recent analyst rating on (HK:2400) stock is a Hold with a HK$74.00 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 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.

The most recent analyst rating on (HK:2400) stock is a Hold with a HK$81.40 price target. To see the full list of analyst forecasts on XD, Inc. stock, see the HK:2400 Stock Forecast page.