HK Stock Market Move | XD INC (02400) rose by over 5%, with expected net profit for last year reaching a high of 9.4 billion yuan. New games and TapTap are expected to continue driving growth.

XD INC (02400) rose more than 5%, as of the end of trading, it was up 4.97% at 39.1 Hong Kong dollars, with a turnover of 1.55 billion Hong Kong dollars. On the news front, XD INC recently released a profit warning, expecting revenue of approximately 4.96 billion to 5.04 billion yuan for the fiscal year 2024, an increase of about 46.3% to 48.7% year-on-year; net profit of approximately 860 million to 940 million yuan, turning losses into profits. This is mainly due to the strong performance of self-developed games such as "Setting Off with Muffin", "Sword of Bellflowers" and "Heartfelt Town", which have increased the group's revenue and gross profit margin; TapTap has achieved continuous growth in revenue and profit. Soochow stated that the company's self-developed games, TapTap user growth, and improved monetization efficiency are driving performance beyond expectations. The firm is optimistic about the value of the company's TapTap platform, with the potential for advertising revenue growth to gradually be realized, and maintains a "buy" rating. Open Source Securities pointed out that the substantial growth of TapTap platform users and ad exposure, along with AI algorithm models further enhancing conversion efficiency.