Lyon's report states that China Lit (00772.HK) has had strong momentum in IP business this year, with successful launches of drama series and blockbuster movies. It is expected that IP business revenue (excluding New Classics Media) may accelerate to over 20% YoY growth, driven mainly by IP gaming, commodity monetization, and animation/drama production capacity expansion.

The report mentioned that due to the upward adjustment of profit forecast for China Lit, the target price has correspondingly increased from 29 yuan to 32 yuan, and maintains a 'outperform' rating. Future catalysts include revenue sharing from new movies and more game releases.