CHINA LIT (00772) surged nearly 6%, rising 5.82% to HK$41.8 as of press time, with trading volume reaching HK$488 million.

In the first half of this year, CHINA LIT achieved revenue of 3.191 billion yuan and net profit attributable to shareholders of 850 million yuan, representing a year-on-year increase of 68.50%.

Citi released a research report stating that CHINA LIT's first-half performance slightly exceeded expectations, primarily benefiting from growth in licensing business, steady performance in short dramas, and progress in IP commercialization, leading to stronger-than-expected profit growth in non-New Classic Media businesses.

Notably, CHINA LIT previously launched the "National Creative Content Strategic Cooperation Plan" with Honor of Kings, simultaneously releasing and launching the collaboration between "Lord of the Mysteries" and Honor of Kings. This collaboration between two world-class IPs marks the first time both merchandise and skins have been launched simultaneously since their deep cooperation began.

Tianfeng Securities noted that in the film and television sector, CHINA LIT has produced quality content with both critical acclaim and popularity. Multiple top-tier drama series adapted from CHINA LIT's IPs launched in the first half of this year, all ranking first on their respective platforms during broadcast periods. In animation and comics, popular new series have emerged continuously. In the short drama sector, high-revenue quality productions continue to appear.

CHINA LIT's hit rate for short dramas improved significantly in the first half, with the highest single project revenue exceeding 80 million yuan, ranking second on the Yunhe Data dominance list with total online views surpassing 3 billion.

The firm believes that CHINA LIT possesses stable capabilities in creating commercial hits and a viable business model for IP industry chain integration. Long-term prospects suggest the company can build competitive barriers through its strong content ecosystem, rich IP reserves, and diversified commercial chain expansion capabilities while steadily improving profitability.