Investment Rating - Target price set at $146.10 with a Buy rating [2] - The target price implies a 52% upside from the current price of $96.11 [23] Core Views - Revenue forecasts for 2024-2026 have been revised downward to RMB 4,124 billion, RMB 5,210 billion, and RMB 6,344 billion, respectively, from previous estimates of RMB 4,582 billion, RMB 6,221 billion, and RMB 7,681 billion [2] - Operating profit forecasts for 2024-2026 have been adjusted to RMB 1,206 billion, RMB 1,508 billion, and RMB 1,863 billion, down from RMB 1,352 billion, RMB 1,856 billion, and RMB 2,334 billion [2] - The company is expected to focus on GMV growth, sacrificing short-term profits to build a long-term platform ecosystem [11] Financial Performance - Q2 2024 revenue reached RMB 970.60 billion, up 86% YoY, but missed market expectations [32] - Online marketing services revenue grew 29% YoY to RMB 491.16 billion, while transaction services revenue surged 234% YoY to RMB 479.44 billion, driven by Temu's growth [32] - Operating profit for Q2 2024 was RMB 325.65 billion, up 156% YoY, with an operating margin of 33.6% [32] - Non-GAAP operating margin reached a historical high of 36.0% in Q2 2024 [32] - Net profit for Q2 2024 was RMB 320.09 billion, up 144% YoY, with a net margin of 33.0% [32] Domestic Business Challenges - Domestic e-commerce market faces challenges due to rational consumption and intensified competition [11] - Online retail sales of physical goods grew 8.8% YoY in H1 2024, while per capita consumption expenditure declined by 3.3 percentage points to 5.0% in Q2 2024 [11] - The company plans to increase investments and is not considering stock buybacks or dividend plans in the near term [11] Overseas Business Progress - Temu's global sales approached $20 billion in H1 2024, with full-year GMV expected to reach $50 billion [21] - The overseas business is nearing breakeven, with losses narrowing sequentially [21] - Logistics and marketing costs dominate the overseas cost structure, but fulfillment costs are expected to decline as the semi-hosted business expands [21] - Growth in the US market will rely more on organic traffic, with advertising efforts focused on non-US markets [21] Valuation and Financial Metrics - The company's market capitalization stands at $133.5 billion, with a 52-week high/low of $164.69/$88.01 [23] - The EV/EBITDA ratio is 12.0, with an enterprise value of RMB 2,235.56 billion [16] - Non-GAAP gross margin is expected to remain stable at around 65.8%-67.1% from 2024 to 2026 [29] - Non-GAAP operating margin is projected to improve to 32.0% in 2024, up from 26.6% in 2023 [29] Key Financial Forecasts - Total revenue is expected to grow from RMB 412.43 billion in 2024 to RMB 634.35 billion in 2026 [12] - Operating profit is forecasted to increase from RMB 120.65 billion in 2024 to RMB 186.30 billion in 2026 [12] - EPS is projected to rise from RMB 87.1 in 2024 to RMB 134.3 in 2026 [2]

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Sept. 03, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises PDD Holdings Inc. f/k/a Pinduoduo Inc. ("PDD" or the "Company") (NASDAQ: PDD) investors of a class action representing investors that bought securities between April 30, 2021, and June 25, 2024, inclusive (the "Class Period"). PDD investors have until October 15, 2024 to file a lead plaintiff motion. Investors are encouraged to contact attorne ...

NEW YORK, Sept. 03, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of PDD Holdings Inc. f/k/a Pinduoduo Inc. (NASDAQ: PDD) between April 30, 2021 and June 25, 2024, both dates inclusive (the “Class Period”), of the important October 15, 2024 lead plaintiff deadline in the securities class action first filed by the Firm. SO WHAT: If you purchased PDD Holdings securities during the Class Period you may be entitled to compensation without ...

All the doom and gloom could set the stage for a PDD stock boom.On an emotional level, buying when there's blood in the streets is easier said than done. Temu and Pinduoduo parent company PDD Holdings (PDD 2.88%) provided a textbook example recently with a share price bloodletting to test the mettle of self-proclaimed contrarians.As is typical with a blood-in-the-streets event, social media pundits and Wall Street's experts aired their grievances and vented their consternation. Amid the fear and loathing, p ...

Two giants of the stock market, PDD Holdings Inc. PDD and Tesla Inc. TSLA, are making waves not just for their market performance but for their substantial cash reserves.Both companies have amassed significant cash piles without offering dividends or engaging in share buybacks, raising eyebrows among investors.PDD’s Cash Pile Raises ConcernsPDD, the Chinese ecommerce powerhouse behind the popular low-cost marketplace Temu, currently boasts a staggering $38 billion in net cash, reported the Financial Times. ...

Investment Rating - The report maintains a "Buy" rating for the company, Pinduoduo [3][10][26]. Core Insights - The company's revenue for Q2 2024 reached 97.06 billion RMB, showing a year-over-year increase of 86% and a quarter-over-quarter increase of 12%, although it slightly missed Bloomberg's consensus estimate of 99.985 billion RMB [10][16]. - Non-GAAP net profit for Q2 2024 was 34.432 billion RMB, up 126% year-over-year and 13% quarter-over-quarter, exceeding Bloomberg's estimate of 30.1 billion RMB [10][16]. - The company is actively innovating to enhance its platform ecosystem, focusing on improving service experiences and user value, which has led to strong revenue growth [10][18]. - Pinduoduo's global business has expanded to over 70 markets, emphasizing compliance and quality in its international operations [2][20]. Summary by Sections Revenue and Profit Growth - The company achieved significant revenue growth, with advertising revenue at 49.116 billion RMB (up 29% YoY) and commission revenue at 47.944 billion RMB (up 234% YoY) for Q2 2024 [10][39]. - The gross margin for Q2 2024 was 65.28%, reflecting a year-over-year increase of 1.03 percentage points [11][42]. Global Expansion and Risk Management - Pinduoduo is continuously iterating its global business model and exploring new international opportunities while maintaining a focus on compliance and quality [2][20]. Earnings Forecast and Investment Rating - The forecast for Non-GAAP net profit for 2024-2026 has been adjusted to 122.36 billion RMB, 154.96 billion RMB, and 205.92 billion RMB, respectively, with corresponding PE ratios of 8.2, 6.5, and 4.9 [3][26].

Investment Rating - The report maintains an "Overweight" rating for Pinduoduo (PDD.O) with a target price of 160 USD for 2024 [4][11] Core Views - Pinduoduo's revenue growth slowed in Q2 2024, with online marketing and commission income falling below consensus expectations [4][10] - The company is focusing on long-term high-quality development, with increased investments in R&D and merchant ecosystem governance [4][21] - Pinduoduo's adjusted operating profit in Q2 2024 increased by 139% YoY, while adjusted net profit rose by 125% YoY [9][21] Financial Performance - Q2 2024 revenue reached 97.1 billion RMB, an 86% YoY increase, but below the Bloomberg consensus estimate of 100 billion RMB [21] - Online marketing services and other revenues grew by 29% YoY to 49.1 billion RMB, while transaction services revenue surged by 234% YoY to 47.9 billion RMB [21] - Adjusted operating profit margin improved to 33.6%, and adjusted net profit margin rose to 35.5% in Q2 2024 [9] Business Segments - Online marketing services and other revenues grew by 29% YoY in Q2 2024, reaching 49.1 billion RMB [10] - Commission income increased by 234% YoY in Q2 2024, totaling 47.9 billion RMB [10] Future Projections - Revenue for FY2024E/FY2025E/FY2026E is projected at 447.6/570.7/664.7 billion RMB, representing YoY growth of 81%/28%/16% [10][21] - Adjusted net profit for FY2024E/FY2025E/FY2026E is forecasted at 1,296/1,475/1,662 billion RMB, with YoY growth of 91%/14%/13% [10][21] Strategic Initiatives - Pinduoduo is investing in high-quality development, focusing on merchant ecosystem governance and R&D [4][21] - The company plans to support high-quality merchants by reducing transaction fees by approximately 10 billion RMB [21] - Pinduoduo is also enhancing consumer experience and advancing agricultural projects to improve supply chain efficiency [21]

RADNOR, Pa., Aug. 31, 2024 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against PDD Holdings Inc. f/k/a Pinduoduo Inc. ("PDD") (NASDAQ: PDD) on behalf of investors who purchased or otherwise acquired PDD securities between April 30, 2021 and June 25, 2024, inclusive (the "Class Period") The lead plaintiff deadline is October 15, 2024.CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP: If you suffered PDD los ...

Don't let the sheer scope of the sell-off deter you. The market's overreacting to management's cautious language regarding the future.It's been a tough past few days for PDD Holdings (PDD 2.88%) shareholders. The stock tumbled to the tune of 28% on Monday -- it's biggest-ever single-day setback -- following the release of its disappointing second-quarter results and alarming guidance. Shares have continued to fall since then, too. All told, PDD stock now sits more than 40% below its August peak.Rather than ...

NEW YORK, Aug. 30, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of PDD Holdings Inc. f/k/a Pinduoduo Inc. (NASDAQ: PDD) between April 30, 2021 and June 25, 2024, both dates inclusive (the “Class Period”), of the important October 15, 2024 lead plaintiff deadline in the securities class action first filed by the Firm. SO WHAT: If you purchased PDD Holdings securities during the Class Period you may be entitled to compensation without p ...