China Literature Likely Has Multiple Profit-Growth Drivers -- Market Talk

Dow Jones03-18

0113 GMT - China Literature likely has multiple profit-growth drivers, Citi analysts say in a note. These include the online literature platform operator expansion of its short dramas segment and enhanced profit from its artificial-intelligence-animated dramas, they say. A low base could also contribute to 2026 growth, they add. The stock fell around 22% over the past month as investors digested the company's profit warning, the analysts note. AI-animated drama progress could serve as upside share-price catalysts, they say. Citi trims its 2026-2027 adjusted net profit projections by 6%-7% to factor in 2025 results. The bank cuts its target price to HK$37.00 from HK$38.00 but maintains its buy rating. Shares last closed at HK$30.32. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

March 17, 2026 21:13 ET (01:13 GMT)

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