Haitong International released a research report stating that CHINA LIT (00772) recorded revenue of RMB 3.2 billion in the first half of the year, still exceeding market consensus by 1.5%. During the reporting period, online reading business and IP business generated revenues of RMB 2 billion and RMB 1.2 billion respectively, both slightly above expectations. The adjusted net profit margin reached 15.9%, 5 percentage points higher than market expectations.

The firm is optimistic about CHINA LIT's ability to capitalize on the rising opportunities in the IP industry, expecting steady development in TV drama IP, IP derivative products, and short drama businesses. The firm also anticipates that New Classics Media, a subsidiary, will contribute more in the second half of the year, while the online reading business maintains stable performance.

Current forecasts project second half and full-year total revenues to reach RMB 4 billion and RMB 7.2 billion respectively. The firm maintains its "Outperform" rating and raises the target price to HK$38.