CLSA issued a research report stating that CHINA LIT (00772) delivered first-half results that exceeded expectations, primarily benefiting from steady growth in IP derivative merchandise gross merchandise value (GMV) and record-high adjusted net profit excluding New Classic Media (NCM). The firm believes that the IP licensing and derivative merchandise business will unlock the long-term monetization potential of IP assets, including literature, comics, and animation IP assets. In the long term, IP licensing is expected to account for a significantly higher proportion of total revenue, with this business demonstrating superior profit performance. The firm raised its adjusted net profit forecasts for CHINA LIT for 2025 and 2026 by 4% and 2% respectively, upgrading the target price from HK$35 to HK$40 while maintaining an "outperform" rating.