BOCOM INTL: Upgrades CHINA LIT (00772) to "buy" rating, target price raised to 39 Hong Kong dollars.

BOCOM INTL released a research report stating that CHINA LIT (00772) revenue in the first half of the year basically met market expectations. After deducting New Classics Media, adjusted net profit was 550 million RMB, a year-on-year increase of 36%, with a corresponding adjusted net profit margin of 17%, in line with expectations. The target price was raised from HK$28 to HK$39, and the rating was upgraded to "Buy". The bank maintains a stable outlook for the full-year revenue of Yuewen's online business, expecting a 4% year-on-year increase in revenue from the core IP operations of Yuewen's copyrights business, benefiting from the expansion of IP derivative product categories. In the period, online business revenue increased slightly by 2% year-on-year, with paid users increasing by 5% to 9.2 million. The growth trend of IP derivative products continues, with merchandise transaction volume reaching 480 million RMB in the first half of the year, close to the full-year level of 2024.