PDD(US:PDD) Huaan Securities·2025-06-03 12:11Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q1 2025 performance showed lower-than-expected revenue and profit, with a significant increase in expense ratios [4][5] - The online marketing services revenue reached 48.7 billion yuan, a year-on-year increase of 14.8%, exceeding Bloomberg's consensus estimate by 1.5% [5] - The transaction services revenue was 46.9 billion yuan, a year-on-year increase of 5.8%, falling short of Bloomberg's consensus estimate by 12.8% [5] - The company is facing challenges in its overseas business due to tariff policy changes affecting its Temu operations in the U.S. [5][6] - Domestic operations are under pressure from increased subsidy efforts, impacting profit margins [6] Financial Summary - For Q1 2025, the company's revenue was 95.7 billion yuan, a year-on-year increase of 10.2%, but below Bloomberg's consensus estimate by 5.6% [4] - Non-GAAP net profit for the quarter was 16.9 billion yuan, a year-on-year decrease of 44.7%, also below consensus estimates by 38.3% [4] - The company expects revenues of 410.2 billion, 439.6 billion, and 509.9 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 4.2%, 7.2%, and 16.0% [7] - Adjusted net profits are projected to be 92.8 billion, 133.3 billion, and 158.4 billion yuan for the same years, with year-on-year changes of -24.2%, +43.6%, and +18.9% [7] - The company maintains a strong cash position, with cash and cash equivalents expected to reach 534.0 billion yuan by 2027 [11]