Zitong Financial APP learned that UBS issued a research report that gave China Literature a "buy" rating of 00772, lowering its revenue forecast for 2022-24 by 15 to 17 per cent to reflect weaker income in the first half, while the adjusted net profit margin forecast increased by 155-287 percentage points to 17 per cent, reflecting a more streamlined operating expenditure structure after the first half, with the target price falling from HK $49.50 to HK $45.

The report said the company's weaker revenue was offset by better-than-expected cost control in the first half of the year. Looking forward to the second half of the year, with the release of dramas such as "Battle of the Rose" and "the Wind rises" and 2-3 online movies, China Literature's Xinli Media (NCM) is expected to achieve a net profit target of 300 million yuan in the second half of the year. The recent resumption of the approval of game version numbers is a positive factor for China Literature, but the financial impact may not be seen until next year.