CICC: Maintains Outperform rating on Heartbeat Company (02400), raises target price to 82.5 Hong Kong dollars.

According to the Zhtng finance and economics APP, CICC released a research report stating that considering the increase in profitability of TapTap and better-than-expected game performance, it has raised its net profit forecast for XD Inc (02400) by 66% in 2025 and 81% in 2026 to 1.65 billion and 1.95 billion yuan respectively, corresponding to a current stock price of 15/13 times 2025/2026 P/E. The rating remains outperform the industry, taking into account the adjustment of profit forecasts and the gradual digestion of new game expectations. The target price has been raised by 49% to 82.5 Hong Kong dollars (22/18x P/E in 2025/2026), with an upside potential of 45%.