Elevator Pitch
I assign a "Neutral" rating to Hong Kong-listed China Literature Limited (CHLLF) (CHLLY) [772 HK]. China Literature's online paid reading business has received a short-term boost from the coronavirus outbreak, but it faces disruption threats from free reading applications in the medium term. China Literature's intellectual property operations business was the key driver of the company's revenue growth last year, and the FY2020 outlook is promising with 8-10 television drama series in the pipeline.
I like China Literature's intellectual property operations business and its growth prospects, but I am less positive on the