---
title: "In \"The Big Bank,\" Citigroup: China Literature's core IP and online business profits hit a record high, raising the target price to 42.3 yuan"
description: "Citi released a research report stating that although China Literature recently issued a profit warning, with net profit affected by goodwill impairment and losses from New Classics Media, the adjuste"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276031105.md"
published_at: "2026-02-16T04:12:48.000Z"
---

# In "The Big Bank," Citigroup: China Literature's core IP and online business profits hit a record high, raising the target price to 42.3 yuan

> Citi released a research report stating that although China Literature recently issued a profit warning, with net profit affected by goodwill impairment and losses from New Classics Media, the adjusted net profit from core IP and online business is expected to reach a new high of RMB 1 billion in 2025. The bank raised its target price to HKD 42.3, maintaining a "outperform" recommendation, and predicts that online business revenue will remain flat at RMB 2 billion in the second half of 2025, with IP operations driving growth, expecting profits to reach RMB 457 million, benefiting from strong IP demand and merchandise sales

Citi published a research report indicating that China Literature (00772.HK) recently issued a profit warning, with nominal net profit significantly impacted by a one-time goodwill impairment and net losses related to New Classics Media. However, the bank believes that the adjusted net profit from core IP and online business will reach a new high in 2025 (RMB 1 billion), confirming breakthroughs in IP monetization. Amid broader concerns about "AI disruption," the micro-short drama industry and IP owners are expected to benefit from recent defensive measures. The bank raised its target price for China Literature from HKD 40 to HKD 42.3 and maintained a "outperform" recommendation.

The bank forecasts that online business revenue will remain flat in the second half of 2025 (year-on-year and half-year comparisons) at RMB 2 billion, with stable profit margins. However, IP operations (excluding New Classics Media) are expected to continue driving growth, with profits projected to reach RMB 457 million (14% year-on-year growth), benefiting from strong IP demand, robust merchandise sales, and a total merchandise transaction value (GMV) likely to more than double year-on-year, along with improved profit margins and a richer entertainment portfolio including micro-short dramas and animated shorts. Citi anticipates that these new initiatives will drive profit growth in 2026 and may benefit from the acceleration of AIGC applications

### Related Stocks

- [517770.CN - AXA SPDB CSI Hugangshen Game and Culture Media ETF](https://longbridge.com/en/quote/517770.CN.md)
- [159869.CN - ChinaAMC CSI Animation Game ETF](https://longbridge.com/en/quote/159869.CN.md)
- [516190.CN - ChinaAMC CSI Cultural Entertainment Media ETF](https://longbridge.com/en/quote/516190.CN.md)
- [516010.CN - Guotai CSI Animation Game ETF](https://longbridge.com/en/quote/516010.CN.md)
- [00772.HK - CHINA LIT](https://longbridge.com/en/quote/00772.HK.md)
- [516620.CN - Guotai CSI Movies Theme ETF](https://longbridge.com/en/quote/516620.CN.md)
- [159855.CN - Yinhua CSI Movies Theme ETF](https://longbridge.com/en/quote/159855.CN.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Will China Literature Turn The Page? | China Literature Ltd. expects a net loss of up to 850 million yuan for last year, primarily due to a 1.8 billion yuan go | [Link](https://longbridge.com/en/news/276113491.md) |
| Huatai Securities Keeps Their Buy Rating on China Literature (CHLLF) | In a report released on February 13, from Huatai Securities maintained a Buy rating on China Literature, with a price ta | [Link](https://longbridge.com/en/news/275996484.md) |
| Interpump Group (BIT:IP) Margin Slippage Tests Bullish Earnings Growth Narratives | Interpump Group (BIT:IP) reported FY 2025 Q4 revenue of €494.6 million and basic EPS of €0.35, with trailing twelve-mont | [Link](https://longbridge.com/en/news/276038308.md) |
| 06:00 ETPappas says property tax bills now online at cookcountytreasurer.com | Cook County Treasurer Maria Pappas announced that nearly 1.8 million Tax Year 2025 First Installment property tax bills  | [Link](https://longbridge.com/en/news/276434643.md) |
| A-level exam results to be released on Feb 27 | Students who took the A-level examinations in Singapore will receive their results on February 27 at 2.30pm from their s | [Link](https://longbridge.com/en/news/276412897.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.