HK Stock Market Move | XD INC (02400) surged by over 3%, with an expected net profit of up to 9.4 billion yuan last year. The company's self-developed new games are expected to continue to generate profits.

XD INC (02400) rose over 3%, up 3.34% as of the time of publication, at HK$38.65, with a trading volume of HK$2.59 billion. In terms of news, XD INC recently announced a positive earnings forecast. The group is expected to achieve revenue of approximately RMB 49.6 billion to 50.4 billion in the 2024 fiscal year, an increase of about 46.3% to 48.7% year-on-year. It is also expected to achieve a net profit of approximately RMB 8.6 billion to 9.4 billion in the 2024 fiscal year, turning around from a loss to a profit. This is mainly due to the strong performance of the newly released self-developed games "Let's Start Muffin", "Sword of Bellflower", and "Heartbeat Town", which have increased the group's revenue and gross profit margin. TapTap has also achieved continuous growth in revenue and profit. Soochow pointed out that "Let's Start Muffin" has been launched in the Japanese market on February 12, 2025, and as of March 6, it has maintained its position in the top 60 of the iOS game sales chart. They are optimistic about the continued contribution to performance from the domestic, Hong Kong, Macau, Taiwan, and overseas versions of "Let's Start Muffin". In addition, the company's self-developed new games such as the urban superpower strategy RPG "Ise Reboot Day", MMO "Ragnarok Online: Eternal Love 2", and overseas version of "Heartbeat Town" have been reserved, with expectations for incremental performance from the gradual release of new games. With "Heartbeat Town" being a high-DAU product, the company is optimistic about its long-term operational strategy, continuous enrichment of game content, and the potential steady increase in domestic revenue streams, while the performance of international versions is worth looking forward to.