PDD(US:PDD) Orient Securities·2025-11-21 11:08Investment Rating - The report maintains a "Buy" rating for Pinduoduo with a target price of $179.21 per ADS, reflecting a reasonable valuation of $254.4 billion USD (¥18,031 billion CNY) [3][5][14]. Core Insights - The report indicates that external negative impacts are diminishing, leading to a marginal improvement in the company's fundamentals. The advertising revenue for Q3 2025 was reported at ¥53.35 billion, showing a year-on-year growth of 8.1%, although it was below expectations [2][11]. - The company is expected to achieve revenues of ¥434.9 billion, ¥504.5 billion, and ¥553.6 billion for 2025, 2026, and 2027 respectively, with Non-GAAP net profits projected at ¥116.8 billion, ¥143.6 billion, and ¥168.8 billion for the same years [3][12]. Financial Summary - Revenue Forecast: The company is projected to generate revenues of ¥434,885 million in 2025, with a year-on-year growth of 10.4% [4][12]. - Profitability Metrics: The Non-GAAP net profit for 2025 is expected to be ¥116,835 million, with a profit margin of 26.9% [12][19]. - Valuation Metrics: The report employs a Sum-of-the-Parts (SOTP) valuation method, estimating the main platform's value using a P/E ratio of 9, leading to a valuation of ¥1,163.6 billion for the main site alone [13][14]. - Market Performance: The stock price as of November 19, 2025, was $118.02, with a 52-week high of $139.41 and a low of $87.11 [5][11].