Tencent-back China Literature hit 2-week high as co swings to profit

China Literature

23/03/2022 04:30

** Shares of online literature platform operator China
Literature Ltd  0772.HK  surge as much as 15% to HK$35.95, their
highest since March 10 
    ** Stock on course for a second session of gains; the
second-biggest percentage gainer in the Hang Seng Tech Index
 .HSTECH  and ninth biggest in Hang Seng Composite Index  .HSCI 
    ** Tencent-backed  0700.HK  China Literature says net profit
came in at 1.85 bln yuan ($290.50 mln) in 2021 versus 4.8 bln
yuan loss in 2020, while revenue up 1.7% to 8.67 bln yuan
 urn:newsml:reuters.com:*:nFWN2VP02I
    ** Jefferies maintains "buy" rating on the stock but trims 
PT to HK$68.60 from HK$90, seeing risks including
slower-than-expected growth in online reading business due to
more stringent regulations, and competition leads to
higher-than-expected marketing spending in lower-tier cities
    ** Nomura says China Literature's 2H21 earnings in line but
missed revenue target
    ** Shares of Tencent rise 4% to HK$403, highest since March
4; extending gains for a second session
    ** The Hang Seng sub-index, tracking information technology
firms  .HSCIIT , jumps 4.1% and the Hang Seng Tech Index
 .HSTECH  surges 3.2%
    ** The Hang Seng Composite Index  .HSCI  climbs 1.5% and the
benchmark Hang Seng Index  .HSI  rises 1.7%
    ($1 = 6.3684 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))