Core Viewpoint - The report from Haitong International indicates that the revenue of China Literature Group decreased by 24% year-on-year to 3.2 billion yuan, which is still 1.5% higher than market expectations [1] Group 1: Financial Performance - Online reading and IP business revenues reached 2 billion yuan and 1.2 billion yuan respectively, both slightly above expectations [1] - Adjusted net profit margin decreased by 1 percentage point year-on-year to 15.9%, which is 5 percentage points higher than market expectations [1] Group 2: Future Outlook - The company is expected to capitalize on the rise of the IP industry, with steady growth anticipated in TV drama IP, IP derivative products, and short drama businesses [1] - New Classics Media is projected to contribute more in the second half of the year, while online reading business is expected to maintain stable performance [1] - Forecasts for total revenue in the second half and for the full year are set at 4 billion yuan and 7.2 billion yuan respectively, with a maintained "outperform" rating and a target price raised to 38 HKD [1]

[Table_Summary] 公司发布 2025 年上半年业绩报告。截止到 2025 年 6 月 30 日，公司总收入 31.9 亿元，同比 减少 23.9 %，主要因为新丽传媒影视项目排期不均；实现毛利润 16.1 亿元，同比减少 22.6%， 毛利率同比增长 0.8pct 至 50.5%；实现归母净利润 8.50 亿元，同比增加 68.5%；实现 Non- IFRS 归母净利润 5.08 亿元，同比减少 27.7%。 分析师及联系人 [Table_Author] 高超 孙伯阳 SAC：S0490516080001 SAC：S0490525030001 SFC：BUX177 丨证券研究报告丨 港股研究丨公司点评丨阅文集团（0772.HK） [Table_Title] IP 全链条爆发式增长，AI 技术驱动创作升级与 海外变现加速 报告要点 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 阅文集团（0772.HK） cjzqdt11111 [Table_Title2] IP 全链条爆发式增长，AI 技术驱动创作升级与 海外变现加速 [Table_Summary ...

Core Viewpoint - The report from CICC maintains the Non-IFRS net profit forecast for the company for 2025 and 2026, with a target price of HKD 43.5, indicating a potential upside of 39.4% from the current price [1] Group 1: Financial Performance - The company reported a revenue of CNY 3.191 billion for 1H25, with a Non-IFRS net profit of CNY 508 million, aligning closely with CICC's expectations [1] - Excluding the impact of New Classics Media, the Non-IFRS net profit from other businesses grew by 35.7% year-on-year in 1H25 [1] - The gross margin for 1H25 was 50.5%, reflecting a slight increase of 0.5 percentage points year-on-year [3] Group 2: Online Business and IP Operations - Online business revenue for 1H25 was CNY 1.985 billion, showing a modest year-on-year growth of 2.3%, with proprietary platform product revenue increasing by 3.1% [2] - The IP operations and other revenue for 1H25 amounted to CNY 1.205 billion, with the GMV for IP derivative products reaching CNY 480 million, nearing last year's total of CNY 500 million [2] Group 3: Cost Management and One-time Gains - The company experienced a decrease in sales expenses due to fewer film and television projects in 1H25, leading to reduced promotional and advertising costs [3] - A net gain of CNY 580 million from the deemed disposal of an invested company was recorded, which is considered a one-time item with minimal impact on Non-IFRS net profit [3] Group 4: Content and IP Development - New Classics Media has a rich lineup of series for 2025, including titles like "The Drug Storm" and "The Silent Woman," with a focus on the release schedule [4] - The company upgraded its short drama business in 2025, planning to produce over 2,000 web novel IPs, with a single short drama project generating over CNY 80 million in revenue in 1H25 [4] - The company is expanding its IP derivative product offerings, with plans to launch related merchandise for popular IPs like "Full-Time Master" in the second half of 2025 [4]

Core Insights - The company reported a revenue of approximately 8.121 billion yuan for 2024, representing a year-on-year growth of 15.8% [1] - The gross profit was around 3.922 billion yuan, with a year-on-year increase of 16.3% [1] - The company experienced a loss attributable to equity holders of approximately 209 million yuan, a shift from profit to loss compared to the previous year [1] Revenue Breakdown - Online business revenue increased by 2.1% year-on-year to 4.031 billion yuan, accounting for 49.6% of total revenue [1] - Revenue from proprietary platform products' online business rose by 3.4% year-on-year to 3.531 billion yuan, driven by improved core product operations and high-quality content production [1] - Revenue from Tencent product channels' online business decreased by 28.2% year-on-year to 245 million yuan, primarily due to content distribution optimization [1] - Revenue from third-party platform online business increased by 32.0% year-on-year to 254 million yuan, attributed to expanded partnerships with third-party distributors [1] User Metrics - Average monthly active users for proprietary platform products and self-operated channels decreased by 19.0% year-on-year to 166.6 million [2] - Monthly active users for proprietary platform products remained stable at 103.8 million, compared to 104.8 million in 2023 [2] - Monthly active users for Tencent product self-operated channels decreased by 37.7% year-on-year to 62.8 million, due to operational efficiency optimizations [2] - Average monthly paying users increased by 4.6% year-on-year to 9.1 million, driven by the launch of more membership content in 2024 [2] IP Operations and Derivative Products - The company's IP operation business revenue grew by 34% year-on-year to 4 billion yuan under the guidance of a premium strategy [3] - Successful launches of popular content such as "Hot and Spicy" and "Celebrating the Year 2" helped solidify the company's industry-leading position [3] - The derivative products business achieved rapid growth, with a GMV exceeding 500 million yuan in 2024 [3] - The company secured the domestic general agency rights for derivative products of "Nezha 2," showcasing its strength in the IP derivative field [3] - The company plans to continue its premium strategy to create long-lasting IPs and expand their boundaries and value [3]