China Lit (00772) surged more than 5%, as of the press release, rose 4.55%, to HKD 25.25, with a turnover of HKD 40.5078 million.
According to the Zhìtōng Cáijīng APP, China Lit (00772) surged more than 5%, rose 4.55% to HKD 25.25, with a turnover of HKD 40.5078 million.
Citigroup has published a research report stating that it expects China Lit's revenue and profit in the first half of the year to exceed expectations, mainly due to the contribution of its subsidiary New Classics Media. The buy rating is maintained with a target price of HKD 32. The bank pointed out that estimated revenue of China Lit in the first half of the year will increase by 18% year-on-year to RMB 3.86 billion, about 5% higher than the market estimate of RMB 3.66 billion, and the gross margin is expected to expand to 52%. Predicting a non-IFRS profit of about RMB 0.681 billion, which is higher than the market average estimate of RMB 0.642 billion. The report also stated that with several major TV dramas and popular movies being released, it is expected that the revenue and profit of New Classics Media in the first half of the year will reach RMB 0.95 billion and RMB 0.28 billion respectively. Combined with other IP income, it is expected that the revenue and profit of the group will exceed expectations. Looking ahead to the second half of the year, the performance of New Classics Media may weaken due to the reduction in the number of major dramas. The recent release of two movies may bring some uncertainty, while the momentum of other IP adaptations may continue.
The report also pointed out that with several major TV dramas and popular movies being released, it is expected that the revenue and profit of New Classics Media in the first half of the year will reach RMB 0.95 billion and RMB 0.28 billion respectively. Combined with other IP income, it is expected that the revenue and profit of the group will exceed expectations. Looking ahead to the second half of the year, the performance of New Classics Media may weaken due to the reduction in the number of major dramas. The recent release of two movies may bring some uncertainty, while the momentum of other IP adaptations may continue.