Lyon: China Lit (00772) upgraded to "outperform" with a target price of HKD 34.

Lyon released a research report stating that the momentum of CHINA LIT's IP business has significantly improved. With the enhancement of product design and quality control, the company's IP merchandise business is gradually taking shape, and the number of SKUs launched has more than doubled year-on-year. On the other hand, the demand for IP content remains strong. The bank has raised CHINA LIT's profit forecast for the next two years by 4%, upgraded its rating from "hold" to "outperform the market," and raised its target price from HK$28.5 to HK$34 to reflect improved market sentiment and potential growth in revenue and profit from non-Xinli Media IP business.