China Literature (00772.HK) saw its stock price surge by 6.68% in intraday trading, as investors reacted positively to the company's strong first-half performance and strategic developments. The stock's impressive rally comes on the heels of better-than-expected financial results and favorable analyst reports.

According to the company's latest financial report, China Literature achieved revenue of 3.191 billion yuan and net profit attributable to shareholders of 850 million yuan in the first half of 2025, representing a substantial year-on-year increase of 68.50%. This robust performance caught the attention of major financial institutions, with Citi releasing a research report stating that China Literature's first-half results slightly exceeded expectations. The report highlighted growth in the licensing business, steady performance in short dramas, and progress in IP commercialization as key drivers of the company's stronger-than-expected profit growth.

Adding to the positive sentiment, China Literature recently launched the "National Creative Content Strategic Cooperation Plan" with Honor of Kings, a popular mobile game. This collaboration between two world-class IPs marks a significant milestone in their partnership, potentially opening up new revenue streams and expanding the company's reach in the gaming sector. Additionally, China Literature's success in various content sectors, including film, television, animation, and short dramas, has bolstered investor confidence in the company's ability to create commercial hits and leverage its IP across multiple platforms. With total online views surpassing 3 billion for its short drama content and the highest single project revenue exceeding 80 million yuan, China Literature has demonstrated its capacity to generate both popular and profitable content. As the company continues to strengthen its position in the content creation and IP monetization space, investors appear optimistic about its long-term growth prospects and ability to build competitive barriers through its rich IP reserves and diversified commercial chain expansion capabilities.