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

We calculate from audited financials what China Literature Ltd is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Communication Services · HK · ISIN KYG2121R1039

CL China Literature Ltd logo Thin data Sep 13, 2026

China Literature Ltd

0772 · HK

Weakest SetupStrongly overvalued and low quality.

!Fair value HK$7.30 · Strongly overvalued (−63%)
!Quality 46/100
!Weak Growth (revenue 5y −2.9 %/yr)
!Loss-making · -10.5% net margin (TTM)
!Low debt · negative free cash flow
✓Ranks above peers (7/11)
!Narrow moat 13/100
!Evidence only low, so the estimate is less certain
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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$90.95 HK$18.17 Fair Value HK$7.30 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 13, 2026.

How to read this chart

60‑month range HK$18.17 – HK$90.95 · fair‑value band HK$4.82 – HK$9.13 · the HK$19.51 price screens above the HK$7.30 fair value. Dashed = 300-day average. As of Sep 13, 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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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.

Stock analysis

China Literature Ltd (0772) currently trades at HK$19.51, while our model-based Fair Value estimate is HK$7.30, implying the stock looks roughly 167.2% overvalued today.

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Valuation

How firm this estimate is: it rests on 1 models at a data quality of 95/100, which puts the evidence level at low.

Scenario range: HK$4.82 (bear) to HK$9.13 (bull), the price of HK$19.51 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$19.9B (≈ $2.5B) · P/S ratio 2.60 · EPS (TTM) HK$0.8300 · Net margin −10.5% · Return on equity −4.3% · Return on assets (EBIT) 2.0% · Operating margin 5.6% · Revenue (TTM) HK$7.4B.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).

What moves the price

The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.

The share trades about 58% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 10% fair-value upside, at −63%, 0772 screens richer than that median.

Fair Value models

Bear HK$4.82 Fair Value HK$7.30 Bull HK$9.13
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (HK$0.5958 per share) are deliberately not added. 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. Evidence ⓘEvidence = 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.
Highest evidence
NCAV (Graham) HK$8.65 HK$11.58 HK$17.29 54
All 1 models by family
Asset-Based
NCAV (Graham) HK$8.65 HK$11.58 HK$17.29 54

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Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 18

Profitability 11
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 1
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 34
Calm price path (market factor)
Momentum 16
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 79
Share count: buybacks or dilution?

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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%
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 167% overvalued. Compare with Alphabet Inc →

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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 · 150 stocks

Beats the industry median on 6/9 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 45 · Bottom 25%
Fair Value upside −66% · Bottom 25%
Profitability
Return on assets 1% · Above median
Net margin (TTM) −11% · Below median
Operating margin (TTM) 6% · Above median
Growth and dividend
Revenue growth 6% · Above median

Valuation Multiplesvs Internet Content & Information median · lower = cheaper

P/B 0.14× · Cheapest 25%
P/S (TTM) 0.33× · Cheapest 25%
EV/EBITDA 1.2× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 37
FUTURE (revenue growth)31 · sector 31
PAST (return on equity)0 · sector 10
HEALTH (low debt)100 · sector 99
DIVIDEND (yield)0 · sector 35

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
Alphabet Inc GOOGL $344.98 $332.82 −4%
Meta Platforms, Inc META $670.24 $737.26 +10%
Tencent Holdings 0700 HK$433.40 HK$668.57 +54%
Spotify Technology S.A SPOT $547.43 $602.17 +10%
Reddit, Inc RDDT $157.60 $132.52 −16%
Baidu, Inc 89888 HK$76.30 HK$34.90 −54%
Kuaishou Technology, an investment holding company, 81024 HK$26.76 HK$52.36 +96%
NAVER Corporation 035420 199,000 KRW 315,395 KRW +58%
Tencent Music Entertainment Group 1698 HK$30.88 HK$71.54 +132%
REA Group REA A$159.22 A$175.14 +10%

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China Literature Ltd · Fair Value
HK$7.30 −167%Fair Value
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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 Sep 13, 2026, our model estimates a fair value of HK$7.30 versus a price of HK$19.51, about −63% upside (overvalued).
What is the fair value of 0772?
Our model-based fair value for China Literature Ltd is HK$7.30 (as of Sep 13, 2026), built from audited fundamentals. The current price: HK$19.51.
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$7.30 (as of Sep 13, 2026) from 1 valuation models. Cautious scenario HK$4.82, optimistic scenario HK$9.13. 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$7.30, about −63% upside versus a price of HK$19.51 (overvalued). Cautious scenario HK$4.82, optimistic scenario HK$9.13. 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 HK$7.4B (latest available figure, as of Sep 13, 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$7.30 per share (as of Sep 13, 2026), against a price of HK$19.51. 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 Sep 13, 2026, 0772 trades above its calculated fair value: price HK$19.51, fair value HK$7.30, a gap of about −63% (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$19.51); the fair value is what the company's own numbers justify (HK$7.30). For China Literature Ltd the two are HK$12.21 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$19.9B (market capitalisation, as of Sep 13, 2026). Per share that is HK$19.51; our models calculate a fair value of HK$7.30 per share.
What do the bullish and bearish scenarios say about 0772?
Our models span a range for China Literature Ltd: cautious scenario HK$4.82, base HK$7.30, optimistic HK$9.13 per share (as of Sep 13, 2026, price HK$19.51). 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 Sep 13, 2026): return on equity −4.3%. 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$19.51, about 58% below its 52-week high of HK$46.88 and 5% above the low of HK$18.58 (as of Sep 13, 2026). Distance from the high says nothing about value: that is what the fair value of HK$7.30 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 Sep 13, 2026: price HK$19.51, calculated fair value HK$7.30 (−63%), 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$7.30, 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 15.8 % 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 Sep 18, 2026 was HK$19.51. Our model-based fair value is HK$7.30, about −63% upside (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$9.13). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (HK$4.82 to HK$9.13) 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$19.9B (≈ $2.5B). 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 2.60 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of China Literature Ltd (0772)?
Earnings per share at China Literature Ltd are HK$0.8300. Earnings per share over the last twelve months: total profit spread across every single share.
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 −4.3% (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 5.6% (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 +6.2% 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 +69.4% 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 −HK$365M (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, HK$1.5B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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