XD INC(02400) 东吴证券·2025-04-01 08:28Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 50.12 billion yuan in 2024, a year-on-year increase of 47.89%, and a net profit of 8.12 billion yuan, marking a turnaround from a loss in 2023 [8] - The company announced its first annual dividend of 0.4 HKD per share, indicating a positive outlook on profitability [8] - The self-developed games have significantly improved gross margins, with a gross margin of 62.56% in 2024, up 15.89 percentage points year-on-year [8] - The TapTap platform showed a notable increase in monthly active users (MAU), reaching 44.05 million in China, a year-on-year growth of 23.03% [8] - The company has effectively controlled costs, leading to a significant increase in net profit margin to 16.19%, up 18.64 percentage points year-on-year [8] Financial Summary - Total revenue is projected to grow from 50.12 billion yuan in 2024 to 55.28 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 3.17% [1] - Net profit is expected to increase from 8.12 billion yuan in 2024 to 11.61 billion yuan in 2027, reflecting a CAGR of about 8.54% [1] - The earnings per share (EPS) is forecasted to rise from 1.65 yuan in 2024 to 2.36 yuan in 2027 [1] - The price-to-earnings (P/E) ratio is projected to decrease from 18.26 in 2024 to 12.76 in 2027, indicating improving valuation metrics [1]