XD.Inc (2400.HK) TapTap performed well, cost control is the key December 12, 2022 353

PSR Recommendation: BUY Status: Initiation
Target Price: HKD27.31

Overview
XD.Inc (2400.HK) is a game developer, operator and publisher in China, its main
business is game operating and information services. Gaming operating include
online games and premium games, its revenue mainly come from the sales of
virtual items of online games and revenue generated from premium games by
third parties and self-owned distribution platforms. Information service’s revenue
mainly comes from the income generated when the player interactive community
and game recommendation platform TapTap provide online promotion services.
As of June 30, 2022, the company current titles portfolio included 20 online games
and 22 premium games.
A review of Q2 2022 Results
XD.Inc (2400.HK) has announced the interim report ended June 30 2022. The
company’s revenue amounted to RMB 1594.0 million, representing an increase of
15.6% YoY. Gross profit amounted to RMB 782.9 million, representing an increase
of 15.7%. Gross profit margin was 49.1%, roughly flat YoY. The loss for the period
was RMB 381.4 million, representing an increase of 18.3% YoY.
Gaming operating:

About the author

Profile photo of Elvis Kwok

Elvis Kwok
Analyst
Research

香港恒生大學金融分析一級榮譽畢業,具有股票研究、技術分析和投資經驗。現為輝立証券持牌分析師,主要負責遊戲?娛樂?食品等板塊研究。 Elvis holds a BBA degree with first class honor major in Financial Analysis at the Hang Seng University of Hong Kong. He has experience in equity research, technical analysis and investment experience. He is currently a licensed research analyst at Phillip Securities and mainly covers Gaming, Entertainment and Food sectors.

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