China Galaxy International: There is room for improvement in the monetization of intellectual property of Yuewen Group.

Yang Lei and Charlotte Zhou of China Galaxy International stated in a report that China Reading Group has sufficient room for improvement in monetizing its intellectual property and driving growth. They expect that the rapid development of artificial intelligence technology may promote growth in short dramas and AI adaptation dramas. The analysts have raised their adjusted net profit forecast for 2026-2027 by 7.6%-15.3% to reflect higher-than-expected growth in IP licensing and new business. China Galaxy International has raised its target price from HK$44.90 to HK$45.50 and maintains its buy rating.