PDD-拼多多：Q3高增长不及市场预期，加大高质量发展力度

Investment Rating - The investment rating for the company is "Buy" with a target price of $132.0 per ADR [4]. Core Insights - The company reported Q3 total revenue growth of 44% year-on-year, reaching 99.35 billion yuan, slightly below market expectations of 102.83 billion yuan. Online marketing services and other revenues were 49.35 billion yuan, growing 24% year-on-year, while transaction service revenue was 50.0 billion yuan, up 72% year-on-year. Non-GAAP net profit attributable to shareholders was 27.46 billion yuan, a 61% increase, with earnings per ADS at 18.6 yuan, lower than the expected 20.2 yuan [1][5]. - The company is intensifying its focus on high-quality development strategies, investing in building a healthy platform ecosystem through product development, marketing operations, and supply chain management. This includes a series of fee reductions and support policies for merchants, such as a 10 billion yuan fee reduction plan [5]. - Despite the strong revenue growth, the company faces increased competition in the e-commerce sector, which may lead to a slowdown in revenue growth and a gradual decline in profit margins. However, initial positive feedback from merchants regarding the company's support measures indicates a foundation for long-term sustainable development [5]. Financial and Valuation Summary - The total market capitalization is approximately$ 144.557 billion, with a circulating market value of the same amount. The total number of ADRs is 1,389 million, and the total share capital is 5,555 million. The stock has a 12-month low/high of $164.69/$ 88.01 [4]. - The company’s valuation is considered attractive based on comparisons with leading Chinese internet companies and U.S. e-commerce peers, despite the outlook for business growth and expense ratios being below expectations. The target price corresponds to a price-to-earnings ratio of 10.5x for 2024 and 8.6x for 2025 [5].