Huachuang sets HKD 28.19 target for China Literature stock

Published on 10/20/2026 at 21:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IP drama revenue reached RMB 430.00 million in the first half of 2026, up 230.00 percent. China Literature stock costs EUR 2.63 on October 20, 2026, with HKEX at HKD 23.10.

Analyst target and earnings

Huachuang Securities set a HKD 28.19 target on September 30, 2026.
Short-form drama and AI webtoon revenue exceeded RMB 430.00 million in the first half of 2026, up 230.00 percent.
China Literature stock costs EUR 2.63 at Lang & Schwarz on October 20, 2026 at 9:42 p.m. CEST; HKEX closed at HKD 23.10, up 3.59 percent from HKD 22.30.

China Literature, KYG2121R1039, Illustration mit AI erstellt.

China Literature stock has a HKD 28.19 target from Huachuang Securities, which initiated coverage with a Strong Buy rating on September 30, 2026, according to Futu. The target stood 22.03 percent above the HKEX closing price of HKD 23.10 on October 20, 2026. The stock cost EUR 2.63 at Lang & Schwarz on October 20, 2026 at 9:42 p.m. CEST.

IP revenue gains scale

The operating story behind the target is shifting from digital reading toward broader intellectual-property monetization. In the first half of 2026, short-form drama and AI-powered webtoon revenue exceeded RMB 430.00 million, an increase of 230.00 percent from the prior-year period, Moomoo reported on October 18, 2026. China Literature also plans to launch more than 20 IP-based games over three years, a strategy that extends its content library into games, animation and short-form video.

HKD 23.10 frames the valuation

China Literature closed at HKD 23.10 on the HKEX on October 20, 2026, up 3.59 percent from HKD 22.30. Its market capitalization was HKD 23.3 billion, with a price-to-earnings ratio of 13.55 and volume of 11,482,969 shares. The 52-week range was HKD 18.00 to HKD 45.50.

Profit growth faces a test

Revenue growth has not translated evenly into earnings. China Literature's interim 2026 revenue reached CNY 3,531.388 million, compared with CNY 3,190.584 million in the first half of 2025, while net income excluding extra items fell from CNY 849.755 million to CNY 135.376 million and net margin declined from 26.60 percent to 3.80 percent, Simply Wall St reported on October 19, 2026. That contrast leaves the new IP businesses carrying a larger share of the growth case.

Peer valuation puts the figures in context

Comparison with peers

China Literature: up 3.59 percent on HKEX, P/E 13.55, market capitalization HKD 23.3 billion.
Tencent Holdings (HKEX, HKD): down 1.77 percent, P/E 13.80, market capitalization HKD 3.7 trillion.
Kuaishou Technology (HKEX, HKD): down 2.05 percent, P/E 6.87, market capitalization HKD 123.4 billion.

EUR 2.63 and HKD 23.10

For investors, the key tension is visible in the gap between fast-growing IP revenue and the sharp decline in first-half adjusted earnings. Huachuang's HKD 28.19 target reflects the expansion case, while the 3.80 percent interim net margin shows the execution risk. China Literature was trading at EUR 2.63 at Lang & Schwarz on October 20, 2026 at 9:42 p.m. CEST; on the HKEX, it closed at HKD 23.10, up 3.59 percent from HKD 22.30. The further course of trading is shown by the continuously updated real-time quote of China Literature stock.