China Literature Ltd
HKEX:772
Intrinsic Value
China Literature Ltd. is an investment holding company. [ Read More ]
The intrinsic value of one
China Literature Ltd
stock under the Base Case scenario is
29.77
HKD.
Compared to the current market price of 24.35 HKD,
China Literature Ltd
is
Undervalued by 18%.
China Literature Ltd's market capitalization is 24.9B HKD.
China Literature Ltd stock price is 24.35 HKD.
China Literature Ltd stock price (24.35 HKD) is 18% less than its Intrinsic Value (29.77 HKD).
China Literature Ltd stock price (24.35 HKD) is 20% less than its DCF Value (30.29 HKD). Open DCF Valuation
China Literature Ltd stock price (24.35 HKD) is 17% less than its Relative Value (29.24 HKD). Open Relative Valuation
China Literature Ltd has upside potential of 47% compared to the average analyst price target.
Open Wall St Estimates
China Literature Ltd's ROIC (Return on Invested Capital) has increased in the last 3 years from 2% to 4%.
China Literature Ltd's Revenue is forecast to grow at a rate of 7% per year over the next 3 years.
China Literature Ltd has positive Operating Income for the last twelve months.
China Literature Ltd's Revenue has dropped by 8% over the past 12 months.
China Literature Ltd's ROE (Return on Equity) for the past 12 months is very low and is equal to 4%.
China Literature Ltd's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 4%.
China Literature Ltd's Revenue has been falling by 6% per year for the last 3 years.
China Literature Ltd has positive Net Income for the last twelve months.
China Literature Ltd has a very low three-year average ROIC (Return on Invested Capital): 4%. The company is not efficient at using invested capital to generate operating income.
China Literature Ltd's ROE (Return on Equity) has significantly increased in the last 3 years from -26% to 4%.
China Literature Ltd has positive Free Cash Flow for the last twelve months.
China Literature Ltd has a very low three-year average ROE (Return on Equity): 0%. The company is not efficient at transforming stockholders' equity into net income.
China Literature Ltd has positive Gross Profit for the last twelve months.
China Literature Ltd's short-term assets (11B CNY) exceed its short-term liabilties (4B CNY).
China Literature Ltd's D/E (Debt to Equity) is very low and is equal to 0.02.
China Literature Ltd's long-term assets (23B CNY) exceed its long-term liabilties (4B CNY).
China Literature Ltd has negative Net Debt. This means that the company has more cash and short-term investments (6B CNY) than debt (401m CNY).
China Literature Ltd's Altman Z-Score is very high and is equal to 4.91.
China Literature Ltd earns more than enough operating income (619m CNY) to safely cover interest payments on its debt (26m CNY).
Valuation Backtest
China Literature Ltd
Run backtest to discover the historical profit from buying and selling
China Literature Ltd
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Fundamental Analysis
China Literature Ltd
Balance Sheet Decomposition
China Literature Ltd
| Current Assets | 11.2B |
| Cash & Short-Term Investments | 6.3B |
| Receivables | 2B |
| Other Current Assets | 3B |
| Non-Current Assets | 12B |
| Long-Term Investments | 3.6B |
| PP&E | 336m |
| Intangibles | 7.3B |
| Other Non-Current Assets | 685.7m |
| Current Liabilities | 3.6B |
| Accounts Payable | 1.1B |
| Other Current Liabilities | 2.5B |
| Non-Current Liabilities | 560.4m |
| Long-Term Debt | 401m |
| Other Non-Current Liabilities | 159.4m |
Earnings Waterfall
China Literature Ltd
|
Revenue
|
7B
CNY
|
|
Cost of Revenue
|
-3.6B
CNY
|
|
Gross Profit
|
3.4B
CNY
|
|
Operating Expenses
|
-2.8B
CNY
|
|
Operating Income
|
619.2m
CNY
|
|
Other Expenses
|
185.6m
CNY
|
|
Net Income
|
804.9m
CNY
|
Free Cash Flow Analysis
China Literature Ltd
What is Free Cash Flow?
Profitability Score
Profitability Due Diligence
China Literature Ltd's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
China Literature Ltd's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Solvency Score
Solvency Due Diligence
China Literature Ltd's solvency score is 97/100. The higher the solvency score, the more solvent the company is.
Score
China Literature Ltd's solvency score is 97/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
Price Targets Summary
China Literature Ltd
According to Wall Street analysts, the average 1-year price target for
China Literature Ltd
is 35.82 HKD
with a low forecast of 23.23 HKD and a high forecast of 50.4 HKD.
Shareholder Return
Price
China Literature Ltd
| Average Annual Return | 4.23% |
| Standard Deviation of Annual Returns | 48.8% |
| Max Drawdown | -79% |
| Market Capitalization | 24.9B HKD |
| Shares Outstanding | 1 023 390 016 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
China Literature Ltd
Country
Industry
Market Cap
Dividend Yield
Description
China Literature Ltd. is an investment holding company. The company is headquartered in Shanghai, Shanghai and currently employs 2,000 full-time employees. The company went IPO on 2017-11-08. The Company’s platform provides online readers with easy access to Company’s vast and diverse content library and enables a greater number of writers to create and publish original literary content online. Additionally, the Company able to extend the monetization lifecycle of Company’s content for our writers through Company’s intellectual property operation by managing and licensing Company’s content for adaptation into other entertainment formats.
Contact
IPO
Employees
Officers
The intrinsic value of one
China Literature Ltd
stock under the Base Case scenario is
29.77
HKD.
Compared to the current market price of 24.35 HKD,
China Literature Ltd
is
Undervalued by 18%.
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