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Tencent-backed online literature platform hosting web novels, licensing IP for games, film, TV and anime.
Tencent-backed online literature platform hosting web novels, licensing IP for games, film, TV and anime.
Online reading revenue comes from readers paying per chapter or by membership, plus advertising on free reading apps, while its IP arm licenses adaptations and makes TV series, including through its New Classics Media unit. Tencent holds the controlling stake and links the platform to its other apps.
In one line: A Chinese Wattpad combined with an IP-licensing studio.
Moat: narrow (network effects, installed base, scale). Largest library of web novels and authors, reinforced by Tencent's distribution ecosystem.
Headquarters: Shanghai, China · Founded: 2015 · Employees: 1,700
Size China Literature (0772.HK) is a Hong Kong Communication Services company (Publishing: Books/Magazines) with a market value of $3.18B, the 330th largest of 891 Hong Kong companies the cockpit tracks. Shares closed at HK$24.70 on 6 Nov 2026.
Performance Over six months the shares fell 9.1%, against +4.8% for the median peer and -13.4% for the Hong Kong market (cap-weighted) — 2nd lowest of 18 in its peer set.
Growth Revenue grew 11.8% over the last twelve months (peer median -2.3%); the operating margin is 1.9% (peer median 9.9%).
Valuation It trades at 34.3× forward earnings against a peer median of 14.7× (3rd most expensive of 17).
Price implies For today's price to make sense, revenue must grow about 41% a year for seven years (Req g). Recent delivered growth is -4%, so the hurdle is +44 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 9.6 points below its cost of capital (10.7% WACC).
Next results Next results expected around 23 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | HK$8.60B | HK$7.99B | HK$8.81B | HK$7.75B | HK$8.87B |
| Revenue growth | — | -9% | +14% | -13% | — |
| Gross profit | HK$3.93B | HK$3.61B | HK$4.17B | HK$3.65B | HK$4.62B |
| EBITDA | HK$366M | HK$518M | HK$791M | HK$917M | HK$1.22B |
| Net income | -HK$1.63B | -HK$842M | -HK$227M | HK$889M | HK$707M |
| Free cash flow | HK$616M | HK$83.0M | HK$3.29B | HK$1.58B | HK$2.03B |
| Capital expenditure | HK$87.8M | HK$96.1M | HK$128M | HK$196M | HK$376M |
| Total debt | n/a | HK$202M | HK$177M | HK$272M | HK$694M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| China Literature 0772.HK | $3.18B | -9% | +12% | 2% | 34.3× | 40.8% |
| WEBTOON Entertainment WBTN | $1.31B | -27% | 0% | -3% | n/a | n/a |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 0772.HK | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +26.3% | +9.1% | 2nd highest of 18 |
| 6-month return | -9.1% | +4.8% | 2nd lowest of 18 |
| Distance from 52-week high | -45.7% | -10.5% | lowest of 18 |
| Revenue growth (TTM) | +11.8% | -2.3% | highest of 18 |
| Operating margin | 1.9% | 9.9% | 3rd lowest of 18 |
| Forward P/E | 34.3× | 14.7× | 3rd most expensive of 17 |
| Growth the price implies (Req g, 7 yrs) | 40.8% | -3.1% | most demanding of 17 |
| Growth delivered (Del g) | -3.6% | +1.3% | lowest of 17 |
| Hurdle (Req g minus delivered) | +44.3 pp | -4.4 pp | most demanding of 17 |
| ROIC minus cost of capital | -9.6 pp | +4.1 pp | lowest of 18 |
| Net debt / EBITDA | -23.7× | 1.3× | least indebted of 6 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| China Literature 0772.HK | Hong Kong | $3.18B | -9% | +12% | 2% | 34.3× | 40.8% | -3.6% |
| China South Publishing & Media 601098.SS | China | $3.11B | +2% | -1% | 11% | 13.6× | -20.2% | +3.8% |
| Kadokawa 9468.T | Japan | $3.02B | -2% | +3% | 2% | 101.9× | 25.1% | +6.1% |
| Central China Land Media 000719.SZ | China | $2.91B | +5% | -10% | 13% | 10.5× | -8.9% | -0.5% |
| Jiangsu Phoenix Publishing & Media 601928.SS | China | $3.60B | 0% | -13% | 7% | 15.4× | -7.9% | +0.5% |
| Zhejiang Publishing & Media 601921.SS | China | $2.71B | +7% | -7% | 10% | 14.0× | -12.6% | +1.5% |
| John Wiley & Sons WLY | United States | $2.55B | +21% | 0% | 18% | 10.5× | 0.3% | -2.9% |
| Shandong Publishing & Media 601019.SS | China | $2.41B | +3% | -8% | 8% | 12.2× | -14.1% | +2.9% |
| China Science Publishing & Media 601858.SS | China | $2.31B | -23% | 0% | 10% | 31.4× | 25.2% | +3.6% |
| Springer Nature AG & Co. KGaA SPG.DE | Germany | $4.80B | +10% | +3% | 22% | 13.0× | -6.5% | +3.4% |
| Southern Publishing & Media 601900.SS | China | $2.09B | +27% | -3% | 16% | 11.6× | -10.2% | +4.7% |
| Changjiang Publishing & Media 600757.SS | China | $1.67B | +6% | -3% | 11% | 9.9× | -9.5% | +1.2% |
| China Publishing & Media 601949.SS | China | $1.64B | -2% | -10% | 3% | 15.9× | 6.3% | -2.1% |
| Chinese Universe Publishing & Media 600373.SS | China | $1.57B | -6% | -5% | -4% | 26.0× | n/a | n/a |
| Heilongjiang Publishing & Media 605577.SS | China | $1.03B | +37% | +2% | 7% | n/a | 3.2% | -0.5% |
| Storytel STORY-B.ST | Sweden | $1.01B | +37% | +9% | 12% | 20.2× | 12.0% | +12.5% |
| Pearson PSON.L | United Kingdom | $10.4B | +18% | +3% | 15% | 18.4× | 0.9% | +1.0% |
| Citic Press 300788.SZ | China | $958M | -6% | -2% | 1% | 42.0× | 26.8% | -2.1% |