
$CHINA LIT(00772.HK) is also one of the companies I have been following for a long time. The logic remains the same: the IP value of China Literature has not yet been realized, and its main business is growing steadily. The Waterloo in the previous financial report was mainly caused by the impairment of the previously acquired media and film companies, which does not constitute a long-term negative factor. The current dynamic PE is only 20 times, and the recent decline is more of a correction of the previous short-term overvaluation. Now it has become cost-effective again and is worth paying attention to. I think a reasonable entry range is around HKD 36-38, and by the end of the year (end of December or the release of the annual report), the target price could reach HKD 48. I expect there is still about 30% upside potential.
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