China Literature Ltd. (HK:0772)
:0772
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China Literature
(0772)
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Rating:47Neutral
Price Target:
HK$25.00
▼(-29.22% Downside)
Action:ReiteratedDate:04/26/26
The score is held down primarily by weakening financial performance (losses and a sharp deterioration in 2025 cash flow) and bearish technicals (price below key moving averages with negative MACD). A strong, low-leverage balance sheet provides some support, but valuation is difficult to justify with a negative P/E and no dividend yield data.
Positive Factors
Low-leverage balance sheet
Very low leverage and a sizable equity base give the company durable financial flexibility. This conservatism allows China Literature to fund content acquisition, invest in IP development or weather temporary cash flow shocks without immediate solvency stress, supporting long-term strategic options.
Negative Factors
Volatile revenue trend
Inconsistent top-line performance undermines revenue predictability and planning for content investment and licensing. Structural volatility reduces visibility into which titles sustainably monetize and complicates multi-year rights deals, increasing execution risk for long-term IP monetization.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-leverage balance sheet
Very low leverage and a sizable equity base give the company durable financial flexibility. This conservatism allows China Literature to fund content acquisition, invest in IP development or weather temporary cash flow shocks without immediate solvency stress, supporting long-term strategic options.
Read all positive factors
China Literature (0772) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$26.42B
Dividend YieldN/A
Average Volume (3M)4.19M
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-9.16%
EPS Growth-273.98%
CountryHK
Employees1,740
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.72
Shares Outstanding1,021,476,260
10 Day Avg. Volume4,011,075
30 Day Avg. Volume4,186,547
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.72
Price to Sales (P/S)4.21
P/FCF Ratio-82.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$38.97Price Target Upside10.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.26
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 primarily makes money through (1) online reading and related digital content services and (2) commercialization of its literary IP.
1) Online reading and related digital content services
- Paid digital reading: The company moneti...
China Literature Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
39
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.18B | 8.12B | 7.01B | 7.63B | 8.67B |
| Gross Profit | 3.28B | 3.92B | 3.37B | 4.03B | 4.60B |
| EBITDA | 465.01M | 748.35M | 1.22B | 1.20B | 1.12B |
| Net Income | -755.97M | -209.22M | 804.88M | 608.19M | 1.85B |
Balance Sheet | |||||
| Total Assets | 21.59B | 22.95B | 23.19B | 22.73B | 23.30B |
| Cash, Cash Equivalents and Short-Term Investments | 7.73B | 7.62B | 6.28B | 7.51B | 7.21B |
| Total Debt | 181.43M | 166.21M | 238.10M | 617.98M | 1.45B |
| Total Liabilities | 4.06B | 4.57B | 4.16B | 4.78B | 6.11B |
| Stockholders Equity | 17.53B | 18.37B | 19.02B | 17.96B | 17.19B |
Cash Flow | |||||
| Free Cash Flow | -365.16M | 2.41B | 954.13M | 1.25B | 879.35M |
| Operating Cash Flow | -276.51M | 2.53B | 1.13B | 1.58B | 1.12B |
| Investing Cash Flow | -1.06B | -1.76B | -3.39B | 528.10M | 936.23M |
| Financing Cash Flow | -225.94M | -346.01M | -510.82M | -1.15B | -349.99M |
China Literature Technical Analysis
Neutral
35.32
Price Trends
30.86
Negative
33.19
Negative
35.03
Negative
Market Momentum
-1.11
Negative
43.76
Neutral
60.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0772, the sentiment is Neutral. The current price of 35.32 is above the 20-day moving average (MA) of 26.64, above the 50-day MA of 30.86, and above the 200-day MA of 35.03, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 60.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$4.46T | 21.22 | 19.90% | 0.75% | 13.92% | 18.31% | |
65 Neutral | HK$16.14B | 5.39 | 12.13% | 8.13% | 0.06% | 48.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | HK$335.56B | 59.14 | 1.73% | ― | -3.02% | -81.33% | |
51 Neutral | HK$2.24B | -2.20 | -4.72% | ― | -23.64% | -42.22% | |
47 Neutral | HK$26.42B | -39.92 | -4.08% | ― | -9.16% | -273.98% | |
47 Neutral | HK$6.78B | 13.03 | 6.13% | 4.71% | 13.41% | 210.58% |
* Communication Services Sector Average
HK:0772
China Literature
25.30
-0.70
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China Literature Corporate Events
China Literature Refreshes Board With New Independent Directors Ahead of 2026 AGM
Apr 17, 2026
China Literature Limited announced that independent non-executive directors Yu Chor Woon Carol and Liu Junmin will retire by rotation and not seek re-election at the company’s 2026 annual general meeting after nearly nine years on the board....
China Literature Moves to Update Articles for Paperless Listing Regime
Mar 17, 2026
China Literature has proposed amendments to its memorandum and articles of association to align its corporate governance framework with recent changes to Hong Kong’s Listing Rules, particularly those promoting an expanded paperless listing r...
China Literature Seeks Renewal and Expansion of Tencent-Linked IP and Ad Deals
Mar 17, 2026
China Literature plans to renew and expand key connected transactions with its controlling shareholder Tencent, underscoring the strategic importance of their IP and advertising cooperation. The company, via Shanghai Yueting, has agreed with Tence...
China Literature Widens 2025 Losses as AI-Driven IP Ecosystem Accelerates
Mar 17, 2026
China Literature reported weaker 2025 financial results, with revenue falling 9.3% to RMB7.37 billion and a sharp widening of operating and net losses, although non-IFRS profit attributable to equity holders remained positive at RMB858 million. Th...
China Literature Warns of Wider 2025 Loss on New Classics Media Goodwill Write-Off
Feb 10, 2026
China Literature has issued a profit warning, flagging an IFRS net loss of roughly RMB750 million to RMB850 million for 2025, sharply wider than the prior year’s RMB209 million loss, as it fully writes off about RMB1.8 billion of goodwill fr...
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.