BOCOM International released a research report stating that China Lit (00772) delivered first-half revenue that essentially met market expectations. Excluding New Classic Media, the company's adjusted net profit reached RMB 550 million, representing a 36% year-over-year increase, with a corresponding adjusted net profit margin of 17%, which aligned with expectations. The target price has been raised from HK$28 to HK$39, with the rating upgraded to "buy".

The firm maintains its expectation for stable full-year revenue growth in China Lit's online business. It anticipates that copyright operation revenue from China Lit's core IP operations will increase by 4% year-over-year, benefiting from the expansion of IP derivative business categories. During the reporting period, China Lit's online business revenue grew modestly by 2% year-over-year, with paid users increasing by 5% year-over-year to 9.2 million.

IP derivatives continue to exhibit strong growth momentum, with first-half gross merchandise value reaching RMB 480 million, approaching the full-year 2024 level.