China Literature Limited (0772) Fair Value & Analysis
Communication Services · HK · Market cap HK$19.2B
Fair value as of: Aug 5, 2026
From 1 valuation models · updated today
Fair value updated Aug 5, 2026, revised from HK$7.36 to HK$7.33 (−0.4%) since Jul 2, 2026. Share price +2.6% over the past month.
Below-average quality, and screening another 64% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (HK$9.16). The favourable scenario is already priced in.
- Weak quality (34/100) 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$4.84 to HK$9.16) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.
How to read this chart
60‑month range HK$18.17 – HK$90.95 · fair‑value band HK$4.84 – HK$9.16 · the HK$20.44 price screens above the HK$7.33 fair value. Dashed = 300-day average. As of Aug 5, 2026.
Analysis
China Literature Limited (0772) currently trades at HK$20.44, while our model-based Fair Value estimate is HK$7.33, implying the stock looks roughly 64.1% overvalued today. We read business quality at 34/100 (below-average quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).
Over the trailing twelve months, China Literature Limited generated revenue of HK$7.4B at a net margin of -10.5%. Revenue grew 6.2% year over year. It earns a return on equity of -4.3%. The balance sheet holds a net cash position of HK$1.5B. Fundamentals as of Aug 5, 2026
Our scenario range runs from HK$4.84 (bear case) to HK$9.16 (bull case); at HK$20.44, the current price sits above that range. The share trades about 56% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 2% fair-value upside, at -64%, 0772 screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 1 models by family
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 45 · Market factors (momentum, volatility) 14
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
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.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
China Literature Limited reported revenue of HK$7.4B in FY2025 versus HK$8.7B in FY2021, a compound −4.0%/yr. Reported net income was −HK$776M in FY2025.
0772 screens 64% overvalued. Compare with Alphabet Inc →
Peer Group
Internet Content & Information · 156 stocks
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.
Valuation Multiples vs Internet Content & Information median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc GOOGL | $354.46 | $145.14 | -59% |
| Meta Platforms, Inc META | $669.21 | $534.91 | -20% |
| Tencent Holdings 0700 | HK$460.20 | HK$467.50 | +2% |
| Spotify Technology S.A SPOT | $485.38 | $209.56 | -57% |
| Baidu, Inc BIDU | $113.30 | $451.51 | +299% |
| Reddit, Inc RDDT | $195.34 | $39.59 | -80% |
| Kuaishou Technology, an investment holding company, 1024 | HK$44.70 | HK$101.03 | +126% |
| NAVER Corporation 035420 | 191,300 KRW | 231,585 KRW | +21% |
| Tencent Music Entertainment Group 1698 | HK$34.74 | HK$65.78 | +89% |
| Pinterest, Inc PINS | $22.52 | $14.71 | -35% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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