BRIEF: XD Inc.’s first-half profit triples as game lineup gains traction

Game developer and platform operator XD Inc. (2400.HK) announced on Monday that it expects to report a net profit of 790 million yuan（$110 million） or more for the first half of 2025, more than triple the 250 million yuan it reported a year ago. It said its revenue is expected to reach at least 3.05 billion yuan, up around 37% from the same period last year.

The company attributed the big gains to strong performance of several self-developed games, including Ragnarok M: Classic, Heartopia, and Torchlight: Infinite, which boosted both overall revenue and gross margins. Monthly active users (MAUs) on its TapTap platform remained largely stable, while improvements in advertising algorithms and higher user engagement drove steady growth in both revenue and profit for the platform.

CLSA issued a report on Monday giving XD Inc. an “outperform” rating for the first time, highlighting the company’s solid track record in game development and operations. The brokerage expects the company’s release of Heartopia in overseas markets during the fourth quarter, along with the China debut of Etheria in September, to inject new momentum into XD’s growth. CLSA set a target price of HK$60 for the stock.

XD’s stock opened higher on Tuesday and closed at HK$70.90 by the midday break, up 24.93%. The stock has surged 183% year-to-date.

By Lee Shih Ta

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