PDD(US:PDD) Xin Lang Cai Jing·2025-11-19 05:29Core Viewpoint - Goldman Sachs reported that Pinduoduo (PDD.US) had mixed results in Q3, with operating profit achieving year-on-year growth for the first time in 2025, but online advertising revenue growth fell to single digits, significantly below expectations [1] Financial Performance - The company's management remains cautious, reiterating plans to accelerate reinvestment, which may lead to quarterly performance volatility [1] - Investment and equity income exceeded expectations, indicating improvements in the unit economics and profit margins of the Temu division [1] Revenue and Profit Forecasts - Goldman Sachs lowered its revenue forecasts for Pinduoduo for 2025 and 2026 by 2% to 3%, while raising the adjusted net profit forecast for 2025 by 4% [1] - However, net profit forecasts for the subsequent two years were reduced by 8% and 9%, primarily due to increased investments in the domestic platform ecosystem and intensified competition and regulatory changes faced by Temu [1] Future Projections - The firm expects Pinduoduo's adjusted net profit to decline by 15% in Q4 and to grow by 14% in 2026, with a projected 30% year-on-year growth in net profit for 2027 [1] Target Price Adjustment - Goldman Sachs adjusted its target price for Pinduoduo from $157 to $147, maintaining a "Buy" rating, and continues to anticipate that low base effects in the coming years will provide valuation re-rating opportunities [1]