Core Viewpoint - The report from CMB International indicates that the revenue of China Literature Group decreased by 24% year-on-year to 3.2 billion yuan, which is in line with market expectations [1] - Adjusted net profit, excluding New Classics Media, increased by 36% year-on-year to 550 million yuan, with an adjusted net profit margin of 17%, also meeting expectations [1] Revenue Breakdown - Online business revenue saw a slight increase of 2% year-on-year, with the number of paying users rising by 5% to 9.2 million [1] - Copyright operation revenue dropped by 46% year-on-year, primarily due to the delay in the launch of New Classics Media's series and the net income recognition from short dramas in cooperation with Hongguo [1] - IP derivative products continued to show strong growth, with transaction value reaching 480 million yuan in the first half of the year, approaching the total expected for the entire year of 2024 [1] Future Expectations - The company maintains a stable revenue outlook for its online business for the full year, expecting a 15% year-on-year decline in copyright operation revenue [1] - Core IP operation revenue is projected to increase by 4% year-on-year, benefiting from the expansion of IP derivative product categories [1] - The target price for the company has been raised from 28 HKD to 39 HKD, with the rating upgraded to "Buy" [1]
大行评级｜交银国际：上调阅文集团目标价至39港元 维持在线业务全年收入持稳预期