Executive Summary
China Literature Limited, an investment holding company, operates an online literature platform in the People’s Republic of China.
Snowflake
Fundamentals
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has China Literature's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
15.3%
772
6.8%
HK Media
3.3%
HK Market
1 Year Return
-31.2%
772
-27.6%
HK Media
1.6%
HK Market
Return vs Industry: 772 underperformed the Hong Kong Media industry which returned -27.6% over the past year.
Return vs Market: 772 underperformed the Hong Kong Market which returned 1.6% over the past year.
Shareholder returns
| 772 | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.3% | 6.8% | 3.3% |
| 30 Day | 15.5% | 5.6% | -0.009% |
| 90 Day | -18.0% | -12.1% | -5.1% |
| 1 Year | -31.2%-31.2% | -26.3%-27.6% | 5.3%1.6% |
| 3 Year | n/a | -47.1%-53.9% | 16.1%4.4% |
| 5 Year | n/a | -56.1%-64.8% | 20.4%0.3% |
Price Volatility Vs. Market
How volatile is China Literature's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Did Changing Sentiment Drive China Literature's (HKG:772) Share Price Down By 44%?4 weeks ago | Simply Wall St
Looking At China Literature Limited (HKG:772) From All Angles1 month ago | Simply Wall St
Based On Its ROE, Is China Literature Limited (HKG:772) A High Quality Stock?Valuation
Is China Literature undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: 772 (HK$30.15) is trading below our estimate of fair value (HK$64.47)
Significantly Undervalued: 772 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 772 is poor value based on its PE Ratio (32.8x) compared to the Media industry average (20x).
PE vs Market: 772 is poor value based on its PE Ratio (32.8x) compared to the Hong Kong market (10.4x).
Price to Earnings Growth Ratio
Low PEG Ratio: 772 is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: 772 is overvalued based on its PB Ratio (1.5x) compared to the HK Media industry average (0.7x).
Next Steps
Future Growth
How is China Literature forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
24.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 772's forecast earnings growth (24.3% per year) is above the savings rate (2%).
Earnings vs Market: 772's earnings (24.3% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 772's revenue (12.9% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).
High Growth Revenue: 772's revenue (12.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: 772's Return on Equity is forecast to be low in 3 years time (8.2%).
Next Steps
Past Performance
How has China Literature performed over the past 5 years?
56.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 772's earnings have grown significantly by 56% per year over the past 5 years.
Accelerating Growth: 772's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 772 had negative earnings growth (-6.2%) over the past year, making it difficult to compare to the Media industry average (-15.7%).
Return on Equity
High ROE: 772's Return on Equity (4.3%) is considered low.
Return on Assets
ROA vs Industry: 772's Return on Assets is below or equal to the Media industry average last year.
Return on Capital Employed
ROCE Improving: 772's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is China Literature's financial position?
Financial Position Analysis
Short Term Liabilities: 772's short term assets (CN¥12.3B) exceeds its short term liabilities (CN¥6.3B)
Long Term Liabilities: 772's short term assets (12.3B) exceeds its long term liabilities (1.2B)
Debt to Equity History and Analysis
Debt Level: 772's debt to equity ratio (8.9%) is considered satisfactory
Reducing Debt: Insufficient data to determine if 772's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 772's debt is well covered by operating cash flow (26.7%).
Interest Coverage: 772 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 772 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 772's debt is covered by short term assets (assets are 7.386790x debt).
Next Steps
Dividend
What is China Literature's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate 772's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 772's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if 772's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 772's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 772's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
What is the CEO of China Literature's salary, the management and board of directors tenure and is there insider trading?
4.8yrs
Average management tenure
CEO
Wenhui Wu (41yo)
4.9yrs
Tenure
CN¥4,288,000
Compensation
Mr. Wu Wenhui serves as Co-Chief Executive Officer and Executive Director of China Literature Limited since November 06, 2014. Mr. Wu has been the President of Cloudary Corporation at Shanda Interactive En ...
CEO Compensation Analysis
Compensation vs. Market: Insufficient data to establish whether Wenhui's total compensation is reasonable compared to companies of similar size in the Hong Kong market.
Compensation vs Earnings: Wenhui's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.8yrs
Average Tenure
42yo
Average Age
Experienced Management: 772's management team is considered experienced (4.8 years average tenure).
Board Age and Tenure
2.0yrs
Average Tenure
45yo
Average Age
Experienced Board: 772's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: 772 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 9,051,165 |
| Max Price | CN¥89.94 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 45,911,762 |
| Max Price | CN¥89.94 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 160,000 |
| Max Price | CN¥24.74 |
| Entity | Company |
| Shares | 28,000,000 |
| Max Price | CN¥35.50 |
Ownership Breakdown
Management Team
Wenhui Wu (41yo)
Co-CEO & Executive Director
- Tenure: 4.9yrs
- Compensation: CN¥4.29m
Xuesong Shang (45yo)
President
- Tenure: 0yrs
Frank Liang (42yo)
Co-CEO & Executive Director
- Tenure: 4.9yrs
- Compensation: CN¥6.87m
Siu Kuen Lai (43yo)
Joint Company Secretary
- Tenure: 2.3yrs
Jincheng Zhao
Group GM of Investment & Joint Company Secretary
- Tenure: 4.6yrs
Tingfeng Lin (42yo)
Senior Vice President
- Tenure: 0yrs
Rong Zhang (41yo)
Senior Vice President
- Tenure: 0yrs
Maggie Zhou
Head of Capital Markets & Investor Relations
- Tenure: 0yrs
Board Members
Carol Yu (57yo)
Independent Non-Executive Director
- Tenure: 2yrs
- Compensation: CN¥657.00k
Junmin Liu (69yo)
Independent Non-Executive Director
- Tenure: 2yrs
- Compensation: CN¥657.00k
James Mitchell (45yo)
Chairman of the Board
- Tenure: 0yrs
Wenhui Wu (41yo)
Co-CEO & Executive Director
- Tenure: 4.9yrs
- Compensation: CN¥4.29m
Miranda Leung (51yo)
Independent Non-Executive Director
- Tenure: 2yrs
- Compensation: CN¥876.00k
Frank Liang (42yo)
Co-CEO & Executive Director
- Tenure: 4.9yrs
- Compensation: CN¥6.87m
Haifeng Lin (42yo)
Non-Executive Director
- Tenure: 4.9yrs
Huayi Cao (54yo)
Non-Executive Director
- Tenure: 0.4yrs
Fei Chen (41yo)
Non-Executive Director
- Tenure: 0.4yrs
Company Information
China Literature Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Literature Limited
- Ticker: 772
- Exchange: SEHK
- Founded: 2002
- Industry: Publishing
- Sector: Media
- Market Cap: HK$29.216b
- Shares outstanding: 1.01b
- Website: https://ir.yuewen.com
Number of Employees
Location
- China Literature Limited
- No. 690 Bi Bo Road
- Block 6
- Shanghai
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 772 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Nov 2017 |
| C2X | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2017 |
| CHLL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2017 |
| 772 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Nov 2017 |
| 772 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Nov 2017 |
Biography
China Literature Limited, an investment holding company, operates an online literature platform in the People’s Republic of China. The company’s flagship product is QQ Reading, a unified mobile content agg ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 12:57 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.