0738 GMT - China Literature's earnings outlook for 2025 may remain weak after it announced a profit warning for 2024, Nomura analysts say in a research report. The analysts note that the Chinese company intends to focus on developing top-tier films and drama series content through New Classics Media, its film and drama series production and distribution arm. However, the analysts add that NCM expects lower profit in the near future, driven by extended development cycles for new projects and an increase in production costs. Given NCM contributes a large part of the online literature platform's net profit, lower earnings expectations for NCM would likely weaken China Literature's earnings outlook as well, they say. Nomura cuts the stock's rating to neutral from buy and the target price to HK$27.00 from HK$29.80. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
February 27, 2025 02:38 ET (07:38 GMT)
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