XD, Inc. (2400) AI Stock Analysis

• Market Cap: HK$18.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.26
• Revenue Growth: 44.92%
• EPS Growth: N/A
• Country: HK
• Employees: 1,400
• Sector: Communication Services
• Sector Strength: 81
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.35
• Shares Outstanding: 491,675,230
• 10 Day Avg. Volume: 2,543,544
• 30 Day Avg. Volume: 2,224,477
• PEG Ratio: <0.01
• Price to Book (P/B): 6.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.99
• 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$38.13
• Price Target Upside: -5.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: ―

XD, Inc.'s stock score reflects strong financial performance with notable revenue and profitability improvements, a stable balance sheet, and reasonable valuation. However, mixed technical indicators and cash flow challenges dampen the outlook. The company must enhance cash flow management and address short-term technical weaknesses to improve its overall performance.

XD, Inc. Business Overview & Revenue Model

Company Description

XD, Inc. (2400) is a leading technology company specializing in the development and distribution of interactive entertainment products. Operating primarily in the online gaming sector, the company is known for its innovative mobile and web-based games. XD, Inc. leverages cutting-edge technology and creative storytelling to deliver engaging experiences to a global audience.

How the Company Makes Money

XD, Inc. generates revenue primarily through the sale of virtual goods and in-app purchases within its games. The company adopts a freemium model, offering its games for free while monetizing through optional premium content and features. Additionally, XD, Inc. earns money through advertising partnerships, where it integrates ads into its gaming platforms. The company also benefits from strategic collaborations with other technology and entertainment firms, enhancing its distribution channels and broadening its market reach.

XD, Inc. Financial Statement Overview

Summary

XD, Inc. shows promising growth, particularly in revenue and profitability, which supports its position in the Electronic Gaming & Multimedia industry. The balance sheet indicates strong financial stability with effective capital structure management. However, cash flow challenges suggest a need for better cash conversion and operational cash generation. Overall, the company is on a positive trajectory but must address cash flow efficiency to sustain growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.01B	3.39B	3.43B	2.70B	2.85B
	Gross Profit
3.48B	2.07B	1.84B	1.23B	1.53B
	EBIT
914.79M	-5.22M	-565.70M	-1.00B	86.00M
	EBITDA
981.28M	228.75M	-484.03M	-932.38M	135.59M
	Net Income Common Stockholders
811.53M	-83.04M	-553.50M	-863.81M	9.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.91B	3.35B	3.59B	3.96B	2.32B
	Total Assets
3.92B	4.41B	4.80B	5.04B	3.34B
	Total Debt
159.17M	1.76B	2.10B	1.82B	129.99M
	Net Debt
-2.62B	-1.45B	-993.70M	-1.34B	-2.19B
	Total Liabilities
1.21B	2.54B	2.89B	2.66B	764.62M
	Stockholders Equity
2.51B	1.71B	1.89B	2.30B	2.30B
Cash Flow		Free Cash Flow
0.00	218.99M	-364.98M	-566.96M	275.74M
	Operating Cash Flow
0.00	235.45M	-327.88M	-475.20M	348.19M
	Investing Cash Flow
0.00	343.86M	230.61M	-986.01M	387.19M
	Financing Cash Flow
0.00	-500.70M	-148.15M	2.39B	330.40M

XD, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 40.2 is above the 20-day moving average (MA) of 36.43, above the 50-day MA of 35.55, and above the 200-day MA of 26.76, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.29 is Neutral, 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
0700	78 Outperform	$4.66T	21.92	21.25%	0.65%	8.88%	54.27%
1109	69 Neutral	$177.92B	6.42	9.66%	6.59%	9.97%	-19.80%
2400	63 Neutral	HK$18.73B	21.10	38.63%	―	44.92%	―
Sector *	60 Neutral	$14.06B	6.51	-3.76%	3.69%	2.48%	-35.40%
1980	54 Neutral	$669.47M	31.77	0.88%	3.90%	-85.34%	―
1826	52 Neutral	HK$78.59M	7.97	-265.97%	―	141.76%	―
1022	47 Neutral	HK$367.38M	29.52	-9.06%	―	20.13%	-181.85%

XD, Inc. Corporate Events

XD Inc. Announces 2025 Annual General Meeting and Key Resolutions

XD Inc., a company incorporated in the Cayman Islands, has announced its 2025 Annual General Meeting to be held on May 29, 2025, in Shanghai, China. Key agenda items include the consideration of the company’s audited financial statements for 2024, the declaration of a final dividend of HK$0.4 per share, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, resolutions will be discussed regarding the authorization for directors to allot and issue additional shares, which could impact the company’s capital structure and shareholder value.

XD Inc. Grants Share Options to Key Executives and Employees

XD Inc. announced the grant of 152,046 share options under its Share Option Plan, adopted in 2021, to eligible participants, including directors and employees. The options, priced at HK$30.73 per share, have a ten-year validity and vested immediately upon granting. Notably, 122,500 options were granted to Mr. HUANG Yimeng, the company’s chairman, CEO, and substantial shareholder, highlighting the company’s commitment to aligning leadership incentives with shareholder interests.

XD Inc. Proposes Amendments to Articles of Association for Hybrid Meetings

XD Inc. has announced proposed amendments to its memorandum and articles of association, primarily to align with updated provisions of the Listing Rules that allow general meetings to be held as hybrid or electronic meetings. These amendments are subject to shareholder approval at the upcoming annual general meeting, and a circular with detailed information will be distributed to shareholders in due course.

XD Inc. Reports Strong Financial Growth and User Expansion in 2024

XD Inc. announced its audited consolidated results for the year ended December 31, 2024, showing significant financial growth. Revenues increased by 47.9% to RMB 5,012,107,000, and the company turned a profit of RMB 890,491,000 compared to a loss in the previous year. The company’s online games saw a 14.5% increase in average monthly active users, and TapTap PRC’s average app monthly active users grew by 23.0%, although international users decreased by 13.0%. This strong financial performance and user growth underscore XD Inc.’s strengthening position in the digital entertainment market.

XD Inc. Declares Final Dividend for 2024

XD Inc. has announced a final cash dividend of HKD 0.4 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, although specific dates for shareholder approval and payment have yet to be determined.

XD Inc. Schedules Board Meeting to Approve Annual Results and Dividend

XD Inc. has announced that its board of directors will hold a meeting on March 28, 2025, to consider and approve the company’s annual results for the year ended December 31, 2024. The meeting will also discuss the recommendation of a final dividend payment, reflecting the company’s ongoing commitment to shareholder returns and financial transparency.

XD Inc. Announces Significant Revenue and Profit Growth for FY 2024

XD Inc. has announced a positive profit alert for the fiscal year 2024, with expected revenues between RMB4,960 million and RMB5,040 million, marking a significant increase from the previous year. The company anticipates a net profit ranging from RMB860 million to RMB940 million, a substantial turnaround from the net loss recorded in 2023. The growth is attributed to the successful launch of new games and the continued performance of TapTap, although partially offset by decreased revenues from existing games and increased marketing expenses.