Investment Rating - The report maintains a "Buy" rating for Pinduoduo (PDD.US) with a target price adjusted to $129, reflecting a potential upside of 24% from the current price of $104.09 [4][6][24]. Core Insights - Despite rising risks, the opportunities for Pinduoduo are considered to outweigh the risks. The company reported Q3 2024 revenue of 99.4 billion RMB, which was 3.4% below market expectations, but showed a year-on-year growth of 44%. Adjusted net profit was 27.5 billion RMB, a 61% increase year-on-year, yet also fell short of market expectations by 6% [4][5][6]. - Revenue growth has slowed down significantly, with overall revenue growth dropping from 86% in Q2 2024 to 44% in Q3 2024. Advertising revenue grew by 24% year-on-year, while transaction service revenue saw a 72% increase year-on-year, primarily due to supportive policies for quality merchants [5][6]. - The report indicates that the company's net profit margin decreased to 27.6% in Q3 2024 from 35.3% in Q2 2024, attributed to various support measures that have yet to show their full impact [5][6]. Financial Summary - For FY24E, the projected revenue is 404.04 billion RMB, with an adjusted net profit forecast of 120.81 billion RMB. The adjusted net profit margin is expected to be 27.4% [7][12]. - The company’s financial metrics indicate a projected PE ratio of 11.0x for FY24E, decreasing to 10.0x for FY25E and 8.9x for FY26E, suggesting a relatively attractive valuation compared to peers [7][12]. - The report highlights that Pinduoduo's stock price currently reflects the potential risks, including ongoing competitive pressures and macroeconomic uncertainties, but still presents an attractive investment opportunity based on valuation metrics [6][12].

2024 年 11 月 22 日 公司研究 销售费用率环比提升，3Q 广告收入同增 24.35% ——拼多多（PDD.O）2024 年三季报点评 要点 公司 3Q2024 营收同比增长 44.33%，GAAP 归母净利润同比增长 60.78% 公司公布 2024 年三季报：1-3Q2024 实现营业收入 2832.26 亿元，同比增长 78.40%，实现 GAAP 归母净利润 849.88 亿元，同比增长 131.28%，实现 Non-GAAP 归母净利润 924.93 亿元，同比增长 118.03%。 单季度拆分来看，3Q2024 实现营业收入 993.54 亿元，同比增长 44.33%，实现 GAAP 归母净利润 249.81 亿元，同比增长 60.78%，实现 Non-GAAP 归母净利 润 274.59 亿元，同比增长 61.26%。 公司 3Q2024 综合毛利率下降 0.99 个百分点，期间费用率下降 1.27 个百分点 1-3Q2024 公司综合毛利率为 62.54%，同比下降 1.78 个百分点。单季度拆分来 看，3Q2024 公司综合毛利率为 60.03%，同比下降 0.99 个百分点。 1 ...

CMB 国际全球市场 | 股票研究 | 公司更新 22 Nov 2024 PDD 控股公司(PDD US) | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

22 Nov 2024 CMB International Global Markets | Equity Research | Company Update PDD Holdings (PDD US) | --- | --- | --- | --- | --- | |-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Revenue Growth - Total revenues in Q3 2024 were RMB99,354.4 million (US$14,157.9 million), a 44% increase from RMB68,840.4 million in Q3 2023[4] - Total revenues for the three months ended September 30, 2024, reached RMB 99.35 billion (US$ 14.16 billion), a significant increase from RMB 68.84 billion in the same period of 2023[32] - Revenues from online marketing services and others were RMB49,351.0 million (US$7,032.5 million), a 24% increase from RMB39,687.7 million in Q3 2023[8] - Revenues from transaction services were RMB50,003.4 million (US$7,125.4 million), a 72% increase from RMB29,152.7 million in Q3 2023[9] - Revenues from online marketing services and others for the three months ended September 30, 2024, were RMB 49.35 billion (US$ 7.03 billion), compared to RMB 39.69 billion in the same period of 2023[37] - Revenues from transaction services for the three months ended September 30, 2024, were RMB 50.00 billion (US$ 7.13 billion), up from RMB 29.15 billion in the same period of 2023[37] Profitability - Operating profit in Q3 2024 was RMB24,292.5 million (US$3,461.6 million), a 46% increase from RMB16,656.0 million in Q3 2023[4] - Net income attributable to ordinary shareholders in Q3 2024 was RMB24,980.7 million (US$3,559.7 million), a 61% increase from RMB15,537.1 million in Q3 2023[5] - Non-GAAP net income attributable to ordinary shareholders in Q3 2024 was RMB27,458.7 million (US$3,912.8 million), a 61% increase from RMB17,027.1 million in Q3 2023[14] - Net income for the three months ended September 30, 2024, was RMB 24.98 billion (US$ 3.56 billion), up from RMB 15.54 billion in the same period of 2023[32] - Operating profit for the three months ended September 30, 2024, stood at RMB 24.29 billion (US$ 3.46 billion), compared to RMB 16.66 billion in the same period of 2023[32] - Non-GAAP operating profit for the three months ended September 30, 2024, was RMB 26,770,463 (US$ 3,814,760), compared to RMB 18,125,840 for the same period in 2023[45] - Non-GAAP net income attributable to ordinary shareholders for the three months ended September 30, 2024, was RMB 27,458,701 (US$ 3,912,832), compared to RMB 17,027,084 for the same period in 2023[45] - Non-GAAP operating profit for the nine months ended September 30, 2024, was RMB 90,309,956 (US$ 12,869,065), compared to RMB 41,197,644 for the same period in 2023[45] - Non-GAAP net income attributable to ordinary shareholders for the nine months ended September 30, 2024, was RMB 92,492,640 (US$ 13,180,094), compared to RMB 42,422,832 for the same period in 2023[45] Earnings Per Share - Earnings per diluted ordinary share for the three months ended September 30, 2024, were RMB 4.23 (US$ 0.60), up from RMB 2.65 in the same period of 2023[35] - Non-GAAP diluted earnings per ordinary share for the three months ended September 30, 2024, was RMB 4.65 (US$ 0.66), compared to RMB 2.90 for the same period in 2023[45] - Non-GAAP diluted earnings per ordinary share for the nine months ended September 30, 2024, was RMB 15.64 (US$ 2.23), compared to RMB 7.25 for the same period in 2023[45] Cash Flow and Investments - Net cash generated from operating activities was RMB27,522.3 million (US$3,921.9 million), compared to RMB32,537.9 million in Q3 2023[15] - Net cash generated from operating activities for the three months ended September 30, 2024, was RMB 27,522,313 (US$ 3,921,898), compared to RMB 32,537,857 for the same period in 2023[43] - Net cash used in investing activities for the three months ended September 30, 2024, was RMB 16,898,558 (US$ 2,408,025), compared to RMB 4,820,500 for the same period in 2023[43] - Net cash generated from operating activities for the nine months ended September 30, 2024, was RMB 92,382,132 (US$ 13,164,348), compared to RMB 57,271,860 for the same period in 2023[43] - Net cash used in investing activities for the nine months ended September 30, 2024, was RMB 87,810,779 (US$ 12,512,936), compared to RMB 38,960,607 for the same period in 2023[43] Assets and Liabilities - Cash, cash equivalents, and short-term investments were RMB308.5 billion (US$44.0 billion) as of September 30, 2024, compared to RMB217.2 billion as of December 31, 2023[16] - Other non-current assets were RMB74.0 billion (US$10.5 billion) as of September 30, 2024, compared to RMB48.0 billion as of December 31, 2023[16] - Total current liabilities as of September 30, 2024, were RMB 179.99 billion (US$ 25.65 billion), down from RMB 152.90 billion as of December 31, 2023[30] - Total shareholders' equity as of September 30, 2024, increased to RMB 278.50 billion (US$ 39.69 billion) from RMB 187.24 billion as of December 31, 2023[30] Expenses - Sales and marketing expenses were RMB30,483.8 million (US$4,343.9 million), a 40% increase from RMB21,748.5 million in Q3 2023[10] - Total share-based compensation expenses for the three months ended September 30, 2024, were RMB 2.48 billion (US$ 353.11 million), compared to RMB 1.47 billion in the same period of 2023[40]

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Financial Data and Key Metrics - Total revenues for Q3 2024 reached RMB99.4 billion, a 44% year-over-year increase, driven by growth in online marketing services (RMB49.4 billion, up 24%) and transaction services (RMB50 billion, up 72%) [33] - Net income attributable to ordinary shareholders was RMB25 billion, compared to RMB15.5 billion in the same quarter last year [37] - Non-GAAP operating profit margin was 27%, up from 26% in the same quarter last year [36] - Net cash generated from operating activities was RMB27.5 billion, down from RMB32.5 billion in the same quarter last year [39] Business Line Data and Key Metrics - The RMB10 billion fee reduction program benefited over 10 million merchants, with fee reductions planned for the coming year [8][14] - Logistics support initiatives, including eliminating transhipment fees for Western China, drove significant order volume growth in remote regions [12][24] - The high-quality merchant support program allocated RMB1 billion in subsidies and RMB2 billion in online traffic resources, boosting agricultural product sales [25] Market Data and Key Metrics - Sales of national brands during the Double 11 Shopping Festival rose more than 10-fold quarter-on-quarter [28] - Delivery fees for agricultural products and daily essentials in Western China were cut by up to 70%, encouraging merchants to enter these markets [24] - Consumer preferences shifted towards quality and personalization, driving demand for premium products in urban and rural areas [29] Company Strategy and Industry Competition - The company is committed to high-quality development, focusing on ecosystem investments, fee reductions, and merchant support initiatives [8][15] - Investments in logistics and supply chain innovation aim to strengthen economic links between regions and promote high-quality growth [12][26] - Intensified competition in the e-commerce sector and external challenges have moderated revenue growth and profitability [9][33] Management Commentary on Operating Environment and Future Outlook - Management expects short-term financial impacts from ecosystem investments but remains focused on long-term benefits [10][38] - The company is adapting to shifting consumer preferences and evolving market demands, with a focus on supply chain innovation [15][29] - Global business growth faces challenges from competition and external expectations, but the company remains committed to delivering high-quality services [53][56] Other Important Information - The company hosted the Smart Agriculture Competition and Global Agri-Inno Challenge 2024, advancing research and technology innovation in agriculture [16] - Compliance and platform ecosystem initiatives have been scaled up, with investments in technology and merchant education to enhance supply chain quality [62][65] Q&A Session Summary Question: Progress on Merchant Support Initiatives and Future Plans - The RMB10 billion fee reduction program has significantly lowered operational costs for merchants, enabling them to invest in product development and technology upgrades [48][49] - Logistics fee reductions have expanded merchant reach in Western China, fostering a healthier ecosystem [50][51] Question: Global Business Strategy and External Environment - The company is actively engaging with external stakeholders to enhance service standards and compliance in global markets [54][55] - Intensifying competition and external challenges are expected to impact business growth, but the company remains committed to delivering value to global consumers [56] Question: Compliance and Platform Ecosystem Initiatives - The company has invested in compliance teams, technology, and merchant education to strengthen its ecosystem and meet regulatory requirements [62][65] - These efforts aim to remove bad actors and empower high-quality merchants, fostering a sustainable supply chain [66] Question: Profitability Trends and Long-Term Outlook - Profitability may trend lower in the long term due to investments in ecosystem development, but these investments are expected to create long-term value for consumers and merchants [67][69] Question: Double 11 Shopping Festival Performance and Domestic Competition - The RMB10 billion voucher campaign during Double 11 drove strong sales growth, particularly in agricultural products and daily necessities [77] - Intense competition in the domestic e-commerce market has moderated growth, but the company remains focused on high-quality investments to enhance consumer trust [81][86]

KEY TAKEAWAYSU.S.-traded shares in PDD Holdings are plunging in premarket trading Thursday after the parent of the Temu discount marketplace posted quarterly results that fell massively short of analysts’ estimates.Competition and a costly expansion have been cutting into PDD's earnings.PDD shares are down 20% this year. U.S.-traded shares in PDD Holdings (PDD) are plunging in premarket trading Thursday after the parent of the Temu discount marketplace posted quarterly results that fell massively short of a ...

Revenue Growth - Total revenues in Q3 2024 were RMB99,354.4 million (US$14,157.9 million), a 44% increase from RMB68,840.4 million in Q3 2023[1] - Total revenues for the three months ended September 30, 2024, reached RMB 99,354,401 thousand (US$ 14,157,889 thousand), a significant increase from RMB 68,840,371 thousand in the same period of 2023[20] - Revenues from online marketing services and others were RMB49,351.0 million (US$7,032.5 million), a 24% increase from RMB39,687.7 million in Q3 2023[5] - Online marketing services and others contributed RMB 49,351,022 thousand (US$ 7,032,465 thousand) to revenues for the three months ended September 30, 2024, up from RMB 39,687,678 thousand in the same period of 2023[22] - Revenues from transaction services were RMB50,003.4 million (US$7,125.4 million), a 72% increase from RMB29,152.7 million in Q3 2023[5] - Transaction services revenues for the three months ended September 30, 2024, were RMB 50,003,379 thousand (US$ 7,125,424 thousand), compared to RMB 29,152,693 thousand in the same period of 2023[22] Profitability - Operating profit in Q3 2024 was RMB24,292.5 million (US$3,461.6 million), a 46% increase from RMB16,656.0 million in Q3 2023[2] - Operating profit for the three months ended September 30, 2024, stood at RMB 24,292,458 thousand (US$ 3,461,647 thousand), up from RMB 16,656,021 thousand in the same period of 2023[20] - Operating profit for Q3 2024 increased to RMB 24,292,458 thousand, up 45.8% from RMB 16,656,021 thousand in 2023[26] - Non-GAAP operating profit for Q3 2024 reached RMB 26,770,463 thousand, a 47.7% increase from RMB 18,125,840 thousand in 2023[26] - Net income attributable to ordinary shareholders in Q3 2024 was RMB24,980.7 million (US$3,559.7 million), a 61% increase from RMB15,537.1 million in Q3 2023[3] - Net income for the three months ended September 30, 2024, was RMB 24,980,694 thousand (US$ 3,559,719 thousand), compared to RMB 15,537,122 thousand in the same period of 2023[20] - Net income attributable to ordinary shareholders for Q3 2024 rose to RMB 24,980,694 thousand, up 60.8% from RMB 15,537,122 thousand in 2023[26] - Non-GAAP net income attributable to ordinary shareholders for Q3 2024 was RMB 27,458,701 thousand, a 61.3% increase from RMB 17,027,084 thousand in 2023[26] Earnings Per Share - Diluted earnings per ordinary share for Q3 2024 increased to RMB 4.23, up 59.6% from RMB 2.65 in 2023[26] - Non-GAAP diluted earnings per ordinary share for Q3 2024 was RMB 4.65, a 60.3% increase from RMB 2.90 in 2023[26] - Non-GAAP diluted earnings per ADS for Q3 2024 reached RMB 18.59, up 60.1% from RMB 11.61 in 2023[26] Expenses - Sales and marketing expenses were RMB30,483.8 million (US$4,343.9 million), a 40% increase from RMB21,748.5 million in Q3 2023[7] - Total operating expenses were RMB35,352.7 million (US$5,037.7 million), a 39% increase from RMB25,354.1 million in Q3 2023[6] - General and administrative expenses were RMB1,805.6 million (US$257.3 million), a 138% increase from RMB758.3 million in Q3 2023[7] - Research and development expenses for the three months ended September 30, 2024, were RMB 3,063,353 thousand (US$ 436,524 thousand), up from RMB 2,847,323 thousand in the same period of 2023[20] - Total share-based compensation expenses for the three months ended September 30, 2024, were RMB 2,478,005 thousand (US$ 353,113 thousand), compared to RMB 1,469,819 thousand in the same period of 2023[23] - Share-based compensation expenses for Q3 2024 were RMB 2,478,005 thousand, a 68.6% increase from RMB 1,469,819 thousand in 2023[26] Cash and Investments - Cash, cash equivalents, and short-term investments were RMB308.5 billion (US$44.0 billion) as of September 30, 2024, compared to RMB217.2 billion as of December 31, 2023[9] - Other non-current assets were RMB74.0 billion (US$10.5 billion) as of September 30, 2024, compared to RMB48.0 billion as of December 31, 2023[9] - Cash, cash equivalents, and restricted cash at the end of the period for September 30, 2024, stood at RMB 125,688,495 thousand (US$ 17,910,467 thousand), up from RMB 111,353,259 thousand at the beginning of the period[24] - Net cash generated from operating activities for the three months ended September 30, 2024, was RMB 27,522,313 thousand (US$ 3,921,898 thousand), down from RMB 32,537,857 thousand in the same period of 2023[24] Shareholders' Equity - Total shareholders' equity increased to RMB 278,504,920 thousand (US$ 39,686,634 thousand) as of September 30, 2024, from RMB 187,241,607 thousand in the previous year[18] Non-GAAP Metrics - Non-GAAP operating profit for Q3 2024 reached RMB 26,770,463 thousand, a 47.7% increase from RMB 18,125,840 thousand in 2023[26] - Non-GAAP net income attributable to ordinary shareholders for Q3 2024 was RMB 27,458,701 thousand, a 61.3% increase from RMB 17,027,084 thousand in 2023[26] - Non-GAAP diluted earnings per ordinary share for Q3 2024 was RMB 4.65, a 60.3% increase from RMB 2.90 in 2023[26] - Non-GAAP diluted earnings per ADS for Q3 2024 reached RMB 18.59, up 60.1% from RMB 11.61 in 2023[26] - Non-GAAP diluted weighted-average number of ordinary shares outstanding for Q3 2024 was 5,909,793 thousand, up 0.8% from 5,865,102 thousand in 2023[26] Other Financial Metrics - Loss from fair value change of certain investments for Q3 2024 was RMB 2, a significant decrease from RMB 7,935 in 2023[26]

DUBLIN and SHANGHAI, Nov. 21, 2024 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Highlights Total revenues in the quarter were RMB99,354.4 million (US$1 14,157.9 million), an increase of 44% from RMB68,840.4 million in the same quarter of 2023. Operating profit in the quarter was RMB24,292.5 million (US$3,461.6 million), an increase of 46% from RMB16,656 ...