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China Literature Ltd (0772) fair value: what the stock is really worth

As of Nov 2, 2026: fair value (intrinsic value) of China Literature Ltd stock HK$9.45, price HK$24.68, that is 61.7% below the price, quality 46 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

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Communication Services HK · Based in China · ISIN KYG2121R1039

CL China Literature Ltd logo Thin data Nov 1, 2026

China Literature Ltd

0772 · HK
Very expensive, weak quality

Our calculation puts a fair price 62% below what the stock costs today.

Low debt
Quality 46/100
Fair value HK$9.45 · Strongly overvalued (−61.7%)
Weak Growth (revenue 5y −2.9 %/yr in CNY)
Loss-making · -19.3% net margin (TTM)
Negative free cash flow
Trails peers (3/11)
Narrow moat 17/100
Thin data
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

HK$89.95 HK$18.17 Fair Value HK$9.45 Jun 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.

How to read this chart

60‑month range HK$18.17 – HK$89.95 · fair‑value band HK$6.23 – HK$11.81 · the HK$24.68 price screens above the HK$9.45 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.

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Company profile

China Literature Limited, an investment holding company, operates an online literature platform in the People's Republic of China. The company operates through Online business, and Intellectual Property Operations and Others segments.

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It is involved in the business of online text, online advertising, and game publishing, as well as comics and audio books reading via self-owned platforms under the QQ Reading, Qidian, New Classics Media, and Tencent Animation & Comics brands.

The company also produces, licenses, and distributes film, television, web, and animated series; copyrights licensing; sales of adaptation rights and scripts; distribution of short-form dramas and AI-animated dramas; sales of physical books and intellectual property merchandise products; in-house online games operations; and distributions of online audio books and online comic content provided via Tencent and third-party platforms.

In addition, it provides reading, copyright commercialization, writer cultivation, and brokerage services; and operates text work reading and related open platform through technology methods and digital media, including personal computers, internet, and mobile network.

Further, the company engages in sales of adaptation rights and scripts; and online reading business. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China. China Literature Limited operates as a subsidiary of Tencent Holdings Limited.

Stock analysis

China Literature Ltd (0772) currently trades at HK$24.68, while our model-based Fair Value estimate is HK$9.45, 61.7% below the price, so the stock looks overvalued today.

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Valuation

How firm this estimate is: it rests on 1 models at a data quality of 96/100, which puts the data coverage at low.

Scenario range: HK$6.23 (bear) to HK$11.81 (bull), the price of HK$24.68 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 46/100 (below-average quality), in the Communication Services sector.

Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.

China Literature Ltd reported revenue of 7.4B CNY in FY2025 versus 8.7B CNY in FY2021, a compound −4.0%/yr. Reported net income was −776M CNY in FY2025.

Key figures

Market cap HK$25.1B (≈ $3.2B) Mid · P/S ratio 2.99 · Net margin −10.5% · Return on equity −8.1% · Return on assets (EBIT) 2.0% · Operating margin 5.0% · Revenue (TTM) 7.7B CNY · Revenue growth (YoY) +10.7%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 17 out of 100 (medium confidence).

What moves the price

The share trades about 44% below its 52-week high and 36% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 12% fair-value upside, at −62%, 0772 screens richer than that median.

Fair Value models

Bear HK$6.23 Fair Value HK$9.45 Bull HK$11.81
Price HK$24.68 · Downside -61.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
NCAV (Graham) HK$6.24 HK$9.45 HK$11.82 54
All 1 models by family
Asset-Based
NCAV (Graham) HK$6.24 HK$9.45 HK$11.82 54

Open the full fair value analysis →

Quality Score breakdown

Overall quality 46/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 11
How much profit the company makes from its sales and capital
Quality Growth 32
Are margins and returns getting better?
Cashflow 1
Do the profits arrive as real cash?
Financial strength 82
Debt, balance sheet and risk of trouble
Investment 100
Does it invest with discipline instead of growing at any price?
Low Volatility 30
How calm the share price moves, does not count
Price momentum 39
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 13
Distance to the 52-week high, does not count
New shares 83
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 0/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−9.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.9%
Start year 2020 (pandemic). Over 10 years: +16.4% a year
Revenue growth 11 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+28.5%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−52.5% (2020) → −10.9% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

0772 screens overvalued: fair value 62% below the price. Compare with Alphabet Inc →

Recent news

News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation. Positive
Recent news coverage is more positive than average.

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Internet Content & Information · 126 stocks

Beats the industry median on 2/9 measures
Overall it trails its industry peers.
Valuation
Quality Score 46 · Bottom 25%
Fair Value upside −61.7% · Bottom 25%
Profitability
Return on assets −3.6% · Below median
Net margin (12 months) −19.3% · Bottom 25%
Operating margin (12 months) 5.0% · Below median
Growth and dividend
Revenue growth (quarter YoY) 10.7% · Above median

Valuation Multiplesvs Internet Content & Information median · lower = cheaper

P/B 1.21× · Cheaper than median
P/S (12 months) 2.75× · Pricier than median
EV/EBITDA 36.8× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 47
FUTURE (revenue growth)54 · sector 33
PAST (return on equity)0 · sector 23
HEALTH (low debt)100 · sector 97
DIVIDEND (yield)0 · sector 40

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Kuaishou Technology 1024 HK$27.44 HK$82.32 +200% vs 0772
Tencent Music Entertainment Group 1698 HK$33.50 HK$74.45 +122% vs 0772
Tencent Holdings 0700 HK$392.20 HK$711.42 +81% vs 0772
NAVER Corporation 035420 175,400 KRW 314,922 KRW +80% vs 0772
Meta Platforms, Inc META $606.73 $676.49 +12% vs 0772
Baidu, Inc 9888 HK$75.65 HK$83.74 +11% vs 0772
Alphabet Inc GOOG $278.04 $306.04 +10% vs 0772
Reddit, Inc RDDT $90.97 $100.07 +10% vs 0772
REA Group REA A$166.16 A$175.43 +6% vs 0772
Spotify Technology S.A SPOT $594.04 $615.08 +4% vs 0772

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China Literature Ltd: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "China Literature Ltd Fair Value". https://www.fairvalue-calculator.com/stock/0772

Frequently asked questions

Is China Literature Ltd (0772) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of HK$9.45 versus a price of HK$24.68, about 62% lower (overvalued).
What is the fair value of 0772?
Our model-based fair value for China Literature Ltd is HK$9.45 (as of Nov 1, 2026), built from audited fundamentals. The current price: HK$24.68.
What is the quality score of 0772?
China Literature Ltd has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for China Literature Ltd (0772)?
Our model-based price target is the fair value of HK$9.45 (as of Nov 1, 2026) from 1 valuation models. Cautious scenario HK$6.23, optimistic scenario HK$11.81. It is a calculation from audited fundamentals, not an analyst target.
What is the China Literature Ltd stock forecast for 2026?
Our models put fair value at HK$9.45, about 62% lower versus a price of HK$24.68 (overvalued). Cautious scenario HK$6.23, optimistic scenario HK$11.81. The calculation is refreshed regularly with new filings.
What is the revenue of China Literature Ltd (0772)?
China Literature Ltd reported trailing-twelve-month revenue of about 7.7B CNY (latest available figure, as of Nov 1, 2026).
What is the intrinsic value of China Literature Ltd (0772)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For China Literature Ltd it is HK$9.45 per share (as of Nov 1, 2026), against a price of HK$24.68. It is the blended result of 1 valuation models (cash flow, earnings, asset, dividend).
Is China Literature Ltd stock overvalued or undervalued in 2026?
As of Nov 1, 2026, 0772 trades above its calculated fair value: price HK$24.68, fair value HK$9.45, a gap of about −62% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0772?
No. The price is what the market pays today (HK$24.68); the fair value is what the company's own numbers justify (HK$9.45). For China Literature Ltd the two are HK$15.23 per share apart. That gap is exactly why we show both numbers side by side.
How much is China Literature Ltd worth?
The market values China Literature Ltd at about HK$25.1B (market capitalisation, as of Nov 1, 2026). Per share that is HK$24.68; our models calculate a fair value of HK$9.45 per share.
What do the bullish and bearish scenarios say about 0772?
Our models span a range for China Literature Ltd: cautious scenario HK$6.23, base HK$9.45, optimistic HK$11.81 per share (as of Nov 1, 2026, price HK$24.68). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of China Literature Ltd (0772)?
Balance-sheet figures for China Literature Ltd (as of Nov 1, 2026): return on equity −8.1%. They feed the Quality Score of 46/100, which measures business quality independently of the share price.
How far is 0772 from its 52-week high?
China Literature Ltd trades at HK$24.68, about 44% below its 52-week high of HK$43.98 and 36% above the low of HK$18.17 (as of Nov 2, 2026). Distance from the high says nothing about value: that is what the fair value of HK$9.45 is for.
Which stocks are comparable to China Literature Ltd?
From the same area (Communication Services) we also value Alphabet Inc, Meta Platforms, Inc, Tencent Holdings, Spotify Technology S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is China Literature Ltd stock attractive at the current price?
The data as of Nov 1, 2026: price HK$24.68, calculated fair value HK$9.45 (−62%), Quality Score 46/100, from 1 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0772 calculated?
We run China Literature Ltd through 1 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$9.45, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.2 % above its aggregate fair value. China Literature Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of China Literature Ltd (0772)?
The closing price on Nov 2, 2026 was HK$24.68. Our model-based fair value is HK$9.45, about 62% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with China Literature Ltd right now?
The price sits above even our optimistic bull case (HK$11.81). The favourable scenario is already priced in. Weak quality (46/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. A fairly wide model range (HK$6.23 to HK$11.81) leaves room in how you read the outcome.

Key figures of China Literature Ltd

How large is the market capitalisation of China Literature Ltd (0772)?
The market capitalisation of China Literature Ltd is HK$25.1B (≈ $3.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of China Literature Ltd (0772)?
The price-to-sales ratio of China Literature Ltd is 2.99 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the net margin of China Literature Ltd (0772)?
The net margin of China Literature Ltd is −10.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of China Literature Ltd (0772)?
The return on equity (ROE) of China Literature Ltd is −8.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of China Literature Ltd (0772)?
On an EBIT basis the return on assets of China Literature Ltd is 2.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of China Literature Ltd (0772)?
The operating margin of China Literature Ltd is 5.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at China Literature Ltd (0772)?
Revenue at China Literature Ltd is growing +10.7% versus a year earlier (3y avg −1.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at China Literature Ltd (0772)?
Earnings per share at China Literature Ltd are growing −84.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does China Literature Ltd (0772) generate?
The free cash flow of China Literature Ltd is −365M CNY (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does China Literature Ltd (0772) hold?
China Literature Ltd holds more cash than debt, 1.5B CNY net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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