PDD(US:PDD) Huachuang Securities·2025-11-24 06:53Investment Rating - The report maintains a "Recommended" rating for Pinduoduo (PDD) with a target price of $139.04 [2][9] Core Insights - Pinduoduo's Q3 2025 revenue reached 108.28 billion yuan, a year-on-year increase of 9%. Operating profit was 25.03 billion yuan, up 3% year-on-year, while Non-GAAP operating profit was 27.08 billion yuan, reflecting a 1% increase. Non-GAAP net profit attributable to ordinary shareholders was 31.38 billion yuan, a 14% year-on-year growth [2][9] - The company is focusing on long-term quality growth, with a commitment to enhance platform investments and support merchants through initiatives like the "100 Billion Support Plan" [9][10] - Despite a slowdown in advertising revenue growth, transaction service revenue showed steady growth, with Q3 2025 online market service and other income at 53.35 billion yuan, up 8% year-on-year, and transaction service revenue at 54.93 billion yuan, up 10% year-on-year [9][10] Financial Summary - Total revenue projections for Pinduoduo from 2025 to 2027 are 430.67 billion yuan, 495.50 billion yuan, and 557.63 billion yuan respectively, with corresponding Non-GAAP net profits of 114.90 billion yuan, 139.90 billion yuan, and 165.20 billion yuan [4][10] - The company’s earnings per share (EPS) are projected to be 18.67 yuan in 2025, 22.85 yuan in 2026, and 27.32 yuan in 2027, with a price-to-earnings (P/E) ratio of 10.8 in 2025, decreasing to 7.4 by 2027 [4][10] - The total market capitalization of Pinduoduo is approximately 1,139.39 billion yuan, with a debt-to-asset ratio of 36.23% and a book value per share of 68.93 yuan [6][10]