Investment Rating - The report maintains a "Hold" rating for Pinduoduo (PDD.US) with a target price of 102.98 [1][7][17]. Core Insights - The company's profit has significantly declined, with a 45% year-over-year drop in adjusted net profit for Q1 2025, falling short of market expectations by 39% [7]. - Revenue growth for Q1 2025 was 10%, which is below market expectations by 6%, marking a slowdown from the previous quarter's growth of 24% [7]. - The report highlights that the revenue from Temu, a key service, has also slowed, with a growth rate of only 6% in Q1 2025 compared to 33% in the previous quarter [7]. - Increased sales expenses have not translated into significant revenue growth, with sales expenses rising by 43% year-over-year, leading to a net profit margin decline to 17.7% [7]. - The report anticipates further challenges in overseas business due to unaccounted tariff impacts, suggesting a high level of uncertainty moving forward [7]. Financial Projections - The projected revenue for FY25 is adjusted to RMB 428.2 billion, with an expected adjusted net profit of RMB 79.8 billion [2][8]. - The adjusted target P/E ratio for FY25 is set at 13x, with future projections indicating a decrease to 7.5x in FY26 and 6.5x in FY27 [2][8]. - The report outlines a significant increase in sales expenses, which are expected to continue impacting profit margins negatively [7]. Market Expectations - The market's price expectations for Pinduoduo range from 180, with the current target price set at $100 [3][7]. - The report indicates that the company lacks short-term catalysts for growth, contributing to the decision to maintain the "Hold" rating [7].
拼多多（PDD）：利润暴跌，风险尚未完全释放，维持“持有”评级