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XD, Inc.
(2400)
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Rating:71Outperform
Price Target:
HK$43.00
▲(0.80% Upside)
Action:Upgraded
Date:09/08/26
The score is driven primarily by strong financial performance from a multi-year turnaround (improved profitability, strengthened cash generation, and sharply reduced leverage). Offsetting this, technical signals are mixed with a longer-term downtrend still evident and negative MACD. Valuation is supportive with a moderate P/E and modest dividend yield.
Positive Factors
Profitability turnaround
The sharp shift from losses to strong gross and net margins indicates a meaningful operational turnaround. If these margins remain durable, XD can retain more revenue as profit, generate internal funding, and strengthen its ability to invest in products and growth.
Negative Factors
Top-line contraction
Revenue contraction raises questions about the durability of XD’s demand and market expansion, even as margins improved. Continued top-line weakness could eventually limit operating leverage, reduce reinvestment capacity, and make future earnings growth increasingly dependent on efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
The sharp shift from losses to strong gross and net margins indicates a meaningful operational turnaround. If these margins remain durable, XD can retain more revenue as profit, generate internal funding, and strengthen its ability to invest in products and growth.
Read all positive factors
XD, Inc. (2400) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.34B
Dividend Yield1%
Average Volume (3M)3.37M
Price to Earnings (P/E)11.2
Beta (1Y)1.47
Revenue Growth5.88%
EPS Growth13.11%
CountryHK
Employees1,554
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)3.00
Shares Outstanding483,880,370
10 Day Avg. Volume4,817,612
30 Day Avg. Volume3,368,128
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)7.63
Price to Sales (P/S)5.05
P/FCF Ratio20.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$65.60Price Target Upside53.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)3.27
Revenue Forecast (FY)HK$6.57B
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. It operates through the Game and TapTap platform segments. The company operates TapTap, a game commu...
XD, Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.95B | 5.76B | 5.01B | 3.39B | 3.43B | 2.70B |
| Gross Profit | 4.30B | 4.25B | 3.48B | 2.07B | 1.84B | 1.23B |
| EBITDA | 1.69B | 1.68B | 981.28M | 228.75M | -484.03M | -932.38M |
| Net Income | 1.48B | 1.54B | 811.53M | -83.04M | -553.50M | -863.81M |
Balance Sheet | ||||||
| Total Assets | 5.52B | 5.22B | 3.92B | 4.41B | 4.80B | 5.04B |
| Cash, Cash Equivalents and Short-Term Investments | 3.90B | 3.77B | 2.91B | 3.35B | 3.59B | 3.96B |
| Total Debt | 112.76M | 122.43M | 159.17M | 1.76B | 2.10B | 1.82B |
| Total Liabilities | 1.24B | 1.17B | 1.21B | 2.54B | 2.89B | 2.66B |
| Stockholders Equity | 4.03B | 3.81B | 2.51B | 1.71B | 1.89B | 2.30B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.39B | 1.25B | 218.99M | -364.98M | -566.96M |
| Operating Cash Flow | 1.07B | 1.71B | 1.28B | 235.45M | -327.88M | -475.20M |
| Investing Cash Flow | -286.64M | -359.69M | 17.42M | 343.86M | 230.61M | -986.01M |
| Financing Cash Flow | -41.16M | -396.08M | -1.74B | -500.70M | -148.15M | 2.39B |
XD, Inc. Technical Analysis
Negative
42.66
Price Trends
43.72
Negative
49.08
Negative
60.41
Negative
Market Momentum
-0.77
Negative
43.07
Neutral
42.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2400, the sentiment is Negative. The current price of 42.66 is above the 20-day moving average (MA) of 41.92, below the 50-day MA of 43.72, and below the 200-day MA of 60.41, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 42.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2400.
XD, Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$3.50B | 5.96 | 17.09% | 4.88% | -1.22% | 1.26% | |
76 Outperform | HK$583.10B | 15.33 | 20.04% | 2.52% | 10.15% | -1.91% | |
75 Outperform | HK$33.16B | 10.10 | 10.71% | 0.53% | -0.44% | 68.30% | |
71 Outperform | HK$19.34B | 11.15 | 37.85% | 1.00% | 5.88% | 13.11% | |
68 Neutral | HK$51.00B | 28.51 | 9.84% | ― | 10.65% | 621.86% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | HK$949.63M | 129.65 | 0.56% | ― | 4.87% | ― |
* Communication Services Sector Average
HK:2400
XD, Inc.
39.18
-44.12
-52.97%
HK:0799
IGG
3.04
-0.56
-15.53%
HK:3888
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24.38
-10.19
-29.47%
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iDreamSky Technology Holdings Limited
0.41
-0.67
-62.04%
HK:9626
Bilibili, Inc. Class Z
121.90
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HK:9999
Netease Inc
182.10
-48.73
-21.11%
XD, Inc. Corporate Events
XD Inc. Grows Revenue but Faces Profit Decline and TapTap Overseas Weakness
Aug 28, 2026
XD Inc. reported a 7.5% year-on-year rise in revenue to RMB3.31 billion for the six months ended June 30, 2026, driven by growth in its online games business, where average monthly active users increased 10% and monthly paying users rose 8.9%. Des...
XD Inc. Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 18, 2026
XD Inc. has scheduled a board meeting for August 28, 2026, to review and approve its interim results for the six months ended June 30, 2026. The session will also consider the publication of these results, signaling upcoming disclosure of the comp...
XD Inc. Grants New Share Options to Boost Management and Staff Incentives
Jul 10, 2026
XD Inc. has granted 85,894 share options under its 2021 share option plan to directors and full-time employees, all of which vest immediately and are valid for ten years. The options carry an exercise price of HK$46.952 per share, matching the fiv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.