GF Securities: Maintains "Buy" Rating on China Literature Limited (00772.HK), Fair Value HK$25.59

Zhitong Finance APP has learned that GF Securities has issued a research report stating that it maintains a "Buy" rating on China Literature Limited (00772.HK), assigning the company a valuation of 26 times price-to-earnings based on 2026 adjusted net profit, and calculates a fair value of HK$25.59 per share. The bank expects the company's revenue for 2026-2027 to be RMB 7.45 billion and RMB 7.77 billion, respectively, representing year-on-year growth of 1% and 4%; adjusted net profit attributable to shareholders to be RMB 850 million and RMB 1.35 billion, respectively, representing year-on-year changes of -1% and 58%. The bank believes that China Literature's deepening of its IP+AI strategy may further enhance IP development efficiency, and its short drama and comic drama business is expected to benefit from OPC capacity expansion and diversified distribution channels, driving both revenue and profit growth.