China Literature (SEHK:772) EPS Collapse In 2H 2025 Tests Bullish Profitability Narratives

Simply Wall St.03-18

China Literature (SEHK:772) has wrapped up FY 2025 with second half revenue of C¥4.2b and basic EPS of a C¥1.57 loss, capping off a trailing twelve month picture of C¥7.4b in revenue and a net loss of...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2620268818?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/4314000-choice1-main-header/1585186740098","is_english":true,"pubTime":"2026-03-18 20:06","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2620268818","market":"sg","top_or_hot":-1,"title":"China Literature (SEHK:772) EPS Collapse In 2H 2025 Tests Bullish Profitability Narratives","media":"Simply Wall St.","content":"<div>\n<p>China Literature (SEHK:772) has wrapped up FY 2025 with second half revenue of C¥4.2b and basic EPS of a C¥1.57 loss, capping off a trailing twelve month picture of C¥7.4b in revenue and a net loss of...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-772/china-literature-shares/news/china-literature-sehk772-eps-collapse-in-2h-2025-tests-bulli\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>China Literature (SEHK:772) EPS Collapse In 2H 2025 Tests Bullish Profitability Narratives</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nChina Literature (SEHK:772) EPS Collapse In 2H 2025 Tests Bullish Profitability Narratives\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-18 20:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/media/hkg-772/china-literature-shares/news/china-literature-sehk772-eps-collapse-in-2h-2025-tests-bulli><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>China Literature (SEHK:772) has wrapped up FY 2025 with second half revenue of C¥4.2b and basic EPS of a C¥1.57 loss, capping off a trailing twelve month picture of C¥7.4b in revenue and a net loss of...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-772/china-literature-shares/news/china-literature-sehk772-eps-collapse-in-2h-2025-tests-bulli\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1130","symbol_name":"出版","start_time":0,"source_url":"https://simplywall.st/stocks/hk/media/hkg-772/china-literature-shares/news/china-literature-sehk772-eps-collapse-in-2h-2025-tests-bulli","article_id":"2620268818","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4314000-choice1-main-header/1585186740098"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/media/hkg-772/china-literature-shares/news/china-literature-sehk772-eps-collapse-in-2h-2025-tests-bulli","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2620268818","pubTimestamp":1773835576,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"China Literature (SEHK:772) has wrapped up FY 2025 with second half revenue of C¥4.2b and basic EPS of a C¥1.57 loss, capping off a trailing twelve month picture of C¥7.4b in revenue and a net loss of C¥776.1m as the business remains unprofitable overall. The company has seen half year revenue move from C¥3.9b in 2H 2024 to C¥4.2b in 2H 2025, while EPS shifted from a C¥0.71 loss to a C¥1.57 loss over the same period, leaving investors focused on how much of that top line is translating into...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BK1130":"出版","BK1589":"北水核心资产","BK4112":"金融交易所和数据","BLSX":"Tradr 2X Long BLSH Daily ETF","00772":"阅文集团","BLSG":"2倍做多BLSH ETF-Leverage Shares","BK1516":"腾讯概念"},"translate_title":"阅文集团(SEHK：772)2025年下半年每股收益暴跌考验看涨盈利叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00772":1.98,"BLSX":0.6,"BLSG":0.6},"content_text":"China Literature (SEHK:772) has wrapped up FY 2025 with second half revenue of C¥4.2b and basic EPS of a C¥1.57 loss, capping off a trailing twelve month picture of C¥7.4b in revenue and a net loss of C¥776.1m as the business remains unprofitable overall. The company has seen half year revenue move from C¥3.9b in 2H 2024 to C¥4.2b in 2H 2025, while EPS shifted from a C¥0.71 loss to a C¥1.57 loss over the same period, leaving investors focused on how much of that top line is translating into sustainable earnings. With forecasts in the dataset pointing to earnings growth and a potential path to profitability, the key question is whether margins can tighten enough to turn these revenue figures into more durable returns. See our full analysis for China Literature. With the headline numbers set, the next step is to see how this earnings profile lines up against the most widely held narratives about China Literature and where those stories might need updating. See what the community is saying about China Literature SEHK:772 Earnings & Revenue History as at Mar 2026 AdvertisementHalf year swings leave trailing loss of C¥776 million  Across FY 2025, China Literature moved from a net income of C¥849.8 million in 1H to a net loss of C¥1,625.8 million in 2H. This translates to a trailing twelve month loss of C¥776.1 million on C¥7.4b of revenue. Consensus narrative points to expanding IP merchandise and cross platform monetisation as a support for more stable earnings. However, the shift from a C¥849.8 million profit in 1H 2025 to a C¥1,625.8 million loss in 2H shows how reliant results can be on the timing and performance of individual TV, film, or other IP projects.\n     Supporters of the bullish view highlight fast growing merchandise GMV and AI driven content tools as potential future earnings drivers, while the trailing loss of C¥776.1 million indicates the business still needs to convert that IP activity into consistent profit. At the same time, bears focus on competition from short form video and other digital formats, and the swing in basic EPS from a C¥0.84 profit in 1H 2025 to a C¥1.57 loss in 2H gives them concrete evidence that earnings can be volatile from half to half.    Premium P/S multiple with slower forecast revenue growth  China Literature trades on a P/S ratio of 3.6x, which is higher than both the Hong Kong Media industry average of 1.1x and a peer average of 1.5x. At the same time, revenue is forecast to grow at 5.9% per year compared with a cited 8.3% per year for the broader Hong Kong market. Bears argue that a premium P/S multiple is hard to justify when revenue growth is expected to trail the market. The combination of a 3.6x P/S and a 5.9% revenue growth forecast against an 8.3% market rate aligns with their concern that investors are paying more per unit of sales for a slower top line.  Bears warn that if user metrics or IP monetisation do not keep up, a 3.6x P/S on 5.9% revenue growth could come under pressure, which is exactly the type of setup unpacked in the 🐻 China Literature Bear Case. DCF fair value and analyst target sit above C¥29.30 share price  The current share price of C¥29.30 sits well below the DCF fair value of C¥58.28 in the data and an analyst price target of C¥43.29. This implies a gap against both modelled value and the target level used in the dataset. Bulls argue that forecast earnings growth of about 70.75% per year and an expected move to profitability within three years help explain why the DCF fair value of C¥58.28 and the C¥43.29 analyst target are both above the current C¥29.30 price. However, the trailing twelve month loss of C¥776.1 million and current unprofitable status indicate those expectations still depend on a sizeable shift in margins and earnings.  Supporters of the bullish narrative see the gap between the C¥29.30 share price, the C¥58.28 DCF fair value, and the C¥43.29 analyst target as a key part of the story, and that tension between today’s loss making profile and those future numbers is unpacked further in the 🐂 China Literature Bull Case. Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for China Literature on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. With sentiment clearly split between bull and bear views, it makes sense to look through the numbers yourself and decide how the story stacks up. Investors are already pointing to some potential upsides in the data, so take a closer look at the 3 key rewards. See What Else Is Out There China Literature is still loss making with a trailing C¥776.1m loss, volatile half year earnings, and a premium 3.6x P/S despite slower forecast revenue growth. If that mix of earnings volatility and premium pricing feels uncomfortable, widen your search to companies screened as 309 resilient stocks with low risk scores and compare how their profiles stack up.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-2","news_tag":"dataReport","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.40.0","shortVersion":"4.40.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2620268818","isCrawlerRequest":true}