A research report indicates that XD INC (02400) delivered comprehensive outperformance in both gaming and TapTap revenue growth during 1H25, with company revenue increasing 38.7% year-over-year and adjusted net profit reaching 796 million yuan, up 235.3% year-over-year.

On the gaming front, revenue growth and profitability improvements exceeded expectations, driven by increased monetization following content updates for games such as "Heartbeat Town" and "Torchlight," as well as incremental contributions from the overseas launch of "Ragnarok M: Eternal Love" initial server. Meanwhile, on the TapTap platform, despite year-over-year MAU growth being affected by product cycles, the company achieved better-than-expected revenue growth by enhancing advertising efficiency and user engagement.

Looking ahead, the company's capabilities in long-term operations of high-quality content games and overseas publishing are expected to support sustained growth in the gaming segment. For TapTap, while product cycle recovery should drive user base expansion, improvements in monetization efficiency are expected to continue. The "buy" rating is maintained.