According to Zhitong Finance and Economics APP, Open Source Securities released a research report maintaining a "buy" rating for XD Inc. (02400) and bullish on the performance of "Let's Go, Muffin!" and reserve games, as well as the growth of TapTap. "Let's Go, Muffin!" has basically maintained a top 10 ranking on the Hong Kong, Macao and Taiwan iOS bestseller list since its launch. After its launch in the Chinese market on May 15th, the ranking on the iOS bestseller list has continued to climb, with a highest ranking of 4th, second only to the three top games, "DNF Mobile", "King of Glory", and "Peace Elite". As of June 14th, "Let's Go, Muffin!" has basically maintained a top 10 ranking on the bestseller list. According to GameLook's prediction, the revenue of "Let's Go, Muffin!" in the Chinese market in May is about 300 million yuan.

The main points of the report are as follows:

Improvements in R&D and distribution capabilities may lead to increases in product success rates, and there is a possibility for reserve games to continue driving growth.

The good performance of the company's "Ringing Bloom" and the outstanding performance of "Let's Go, Muffin!" may reflect the continuous improvement of the company's self-developed capabilities and understanding of user needs after years of R&D investment and project experience accumulation. Huang Xiwei, the original co-founder of TapTap, returned to the company to be responsible for distribution business, which may further enhance the company's distribution capabilities. The company's self-developed business may start a positive cycle, and the flywheel effect between TapTap and self-developed games may begin to emerge. In addition, the company's upcoming reserve products include "Love Town", "Ether Restart Day", "Let's Go, Muffin!" (Japanese and Korean service), and "Ringing Bloom" (Japanese and Korean service), which are expected to continue driving the company's performance growth.

TapTap's traffic and user base continue to grow, which may accelerate profit release.

In 2024H1, multiple TapTap exclusive games and blockbuster games are expected to drive further growth in platform traffic and users. The TapTap exclusive rhythm game "Phigros" has been downloaded over 30 million times on the TapTap platform, and the fishing game "Happy Fishing Master", mainly promoted on TapTap Android end, has been downloaded over 12 million times on the TapTap platform, driving TapTap to reach its highest ranking of 13 on the iOS application free list in April, creating a historical new high. With the stable issuance of game version numbers and an increase in the number of new games, the demand for advertising investment will increase. TapTap's position as a zero-commission game channel in game distribution may continue to improve, driving rapid growth in platform revenue and accelerating profit release.