China Literature's Profit Likely to Be Lower Than Expected This Year -- Market Talk

Dow Jones
06/04

0414 GMT - China Literature's profit is likely to be lower than previously expected this year, according to Citi analysts in a research note. It is mainly due to taxation matters as the company paying a supplementary payment of CNY300 million in enterprise income tax and late payment surcharges for 2020 to 2022, they note. The payment will be recorded in 2026's financials, they add. "We expect this one-off impact will lead consensus to be revised down, while the matter will not materially impact company normal operations," they note. Citi continues to see the company as a "key beneficiary" of AI technology in unlocking its IP value through short dramas and AI dramas. Citi keep a buy rating, with a target price of HK$37.00. Shares last traded at HK$22.70. (tracy.qu@wsj.com)

 

(END) Dow Jones Newswires

June 04, 2026 00:14 ET (04:14 GMT)

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