Core Viewpoint - The report from Citi highlights that the performance of Tencent's subsidiary, China Literature, exceeded expectations in the first half of the year, primarily driven by robust growth in the total transaction value (GMV) of IP derivative products and a record high adjusted net profit after excluding New Classics Media (NCM) [1] Group 1: Financial Performance - The adjusted net profit reached a new high after excluding NCM [1] - The total transaction value (GMV) of IP derivative products showed steady growth [1] Group 2: Business Outlook - Citi believes that the IP licensing and derivative business can fully unlock the long-term monetization potential of literary, comic, and animation IP assets [1] - It is expected that the proportion of IP licensing in overall revenue will significantly increase, with better profit margin performance for this business [1] Group 3: Forecast and Target Price - Based on the positive outlook, Citi has raised the adjusted net profit forecasts for China Literature for 2025 and 2026 [1] - The target price has been increased from HKD 35 to HKD 40, while maintaining an "Outperform" rating [1]
里昂：上调阅文集团目标价至40港元