China Literature Ltd. (HK:0772)
:0772
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China Literature
(0772)
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Rating:67Neutral
Price Target:
HK$38.00
▲(7.59% Upside)
Action:ReiteratedDate:01/13/26
The score is driven primarily by strong cash flow and a very solid balance sheet, which help offset the recent swing to a net loss. Technicals are constructive with price trending above key averages, but valuation is a major drag given the extremely high P/E and no dividend yield provided.
Positive Factors
Strong Cash Flow
The significant increase in free cash flow highlights strong cash generation, providing the company with operational flexibility and the ability to invest in growth opportunities.
Negative Factors
Profitability Challenges
The shift to a net loss indicates profitability challenges that could hinder reinvestment in the business and affect shareholder returns if not addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Flow
The significant increase in free cash flow highlights strong cash generation, providing the company with operational flexibility and the ability to invest in growth opportunities.
Read all positive factors
China Literature (0772) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$26.86B
Dividend YieldN/A
Average Volume (3M)4.19M
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth-10.26%
EPS Growth-85.75%
CountryHK
Employees1,740
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.72
Shares Outstanding1,021,475,200
10 Day Avg. Volume4,011,075
30 Day Avg. Volume4,186,547
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)1.28
Price to Sales (P/S)2.90
P/FCF Ratio9.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$39.55Price Target Upside11.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.24
Revenue Forecast (FY)HK$7.95B
China Literature Business Overview & Revenue Model
Company Description
China Literature Limited, an investment holding company, operates an online literature platform in the People's Republic of China. The company promotes intellectual properties primarily through its online literature platforms, such as QQ Reading a...
How the Company Makes Money
China Literature generates revenue through multiple streams, primarily by charging readers for premium content access on its platform. The company offers a subscription model, allowing users to pay for memberships that grant them access to exclusi...
China Literature Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.12B | 8.12B | 7.01B | 7.63B | 8.67B | 8.53B |
| Gross Profit | 3.45B | 3.92B | 3.37B | 4.03B | 4.60B | 4.23B |
| EBITDA | 579.28M | 748.35M | 1.22B | 1.20B | 1.12B | 1.06B |
| Net Income | 136.24M | -209.22M | 804.88M | 608.19M | 1.85B | -4.50B |
Balance Sheet | ||||||
| Total Assets | 23.20B | 22.95B | 23.19B | 22.73B | 23.30B | 21.32B |
| Cash, Cash Equivalents and Short-Term Investments | 7.05B | 7.62B | 6.28B | 7.51B | 7.21B | 6.26B |
| Total Debt | 206.47M | 166.21M | 238.10M | 617.98M | 1.45B | 1.33B |
| Total Liabilities | 4.04B | 4.57B | 4.16B | 4.78B | 6.11B | 6.22B |
| Stockholders Equity | 19.16B | 18.37B | 19.02B | 17.96B | 17.19B | 15.09B |
Cash Flow | ||||||
| Free Cash Flow | 667.33M | 2.41B | 954.13M | 1.25B | 879.35M | 821.95M |
| Operating Cash Flow | 840.47M | 2.53B | 1.13B | 1.58B | 1.12B | 1.11B |
| Investing Cash Flow | -1.26B | -1.76B | -3.39B | 528.10M | 936.23M | -4.19B |
| Financing Cash Flow | -471.75M | -346.01M | -510.82M | -1.15B | -349.99M | -92.34M |
China Literature Technical Analysis
Negative
35.32
Price Trends
32.75
Negative
34.34
Negative
35.18
Negative
Market Momentum
-2.03
Positive
33.39
Neutral
21.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0772, the sentiment is Negative. The current price of 35.32 is above the 20-day moving average (MA) of 28.37, above the 50-day MA of 32.75, and above the 200-day MA of 35.18, indicating a bearish trend. The MACD of -2.03 indicates Positive momentum. The RSI at 33.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0772.
China Literature Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$26.86B | -4.73 | -4.08% | ― | -10.26% | -85.75% | |
65 Neutral | HK$4.49T | 22.32 | 20.51% | 0.75% | 13.15% | 30.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | HK$16.73B | 5.39 | 12.13% | 8.13% | -1.40% | 22.37% | |
53 Neutral | HK$289.19B | 59.14 | 2.02% | ― | -2.92% | -57.12% | |
50 Neutral | HK$1.85B | -9.81 | -4.72% | ― | -23.80% | ― | |
47 Neutral | HK$6.74B | 13.03 | 6.13% | 4.71% | -7.61% | -90.51% |
* Communication Services Sector Average
HK:0772
China Literature
26.30
-0.10
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496.60
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21.78%
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0.74%
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-19.22%
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-4.02
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China Literature Corporate Events
China Literature Grants 98,821 Restricted Share Units to Employees Under 2020 Scheme
Jan 13, 2026
China Literature Limited has granted a total of 98,821 restricted share units (RSUs) to employees under its 2020 RSU Scheme, with no consideration payable and a reference share price of HK$38.74 on the grant date. The bulk of the RSUs will vest in...
China Literature Sets March 2026 Board Meeting to Approve 2025 Results and Mull Dividend
Dec 29, 2025
China Literature Limited has scheduled a board meeting for March 17, 2026 to review and approve the annual results of the company and its subsidiaries for the financial year ending December 31, 2025, and to consider the publication of these result...
China Literature Renews Agreement with Tencent and Enters New Deals with YHKT
Dec 4, 2025
China Literature Limited has announced the renewal of its existing cooperation agreement with Tencent Computer, extending their collaboration on novel creation and competition organization through the 2026 Novel Creation and Solicitation Cooperati...
China Literature Announces Share Buy-back Plan to Boost Market Confidence
Dec 4, 2025
China Literature Limited has announced a voluntary on-market share buy-back plan, approved by its board of directors. The plan allows for the repurchase of up to 10% of the company’s issued shares, with a maximum fund allocation of HKD1.2 bi...
China Literature Updates Nomination Committee Guidelines
Dec 4, 2025
China Literature Limited has updated the terms of reference for its Nomination Committee, which is responsible for identifying and recommending director candidates, overseeing board performance evaluations, and developing nomination guidelines. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.