Investment Rating - The report maintains a "Recommend" rating for Pinduoduo (PDD) with an upward revision in the target price [7][22] Core Views - Pinduoduo's Q1 2024 revenue reached 86.8 billion yuan, a year-on-year increase of 131%, with operating profit at 26 billion yuan, up 275% year-on-year [7] - Non-GAAP operating profit for Q1 2024 was 28.55 billion yuan, a 237% increase year-on-year, and Non-GAAP net profit attributable to ordinary shareholders was 30.6 billion yuan, up 202% year-on-year [7] - The company's overseas business, particularly Temu, is growing rapidly, contributing significantly to revenue and improving unit economics (UE) [1] - Pinduoduo's advertising revenue in Q1 2024 was 42.46 billion yuan, a 56% year-on-year increase, driven by new advertising products and high-quality merchant growth [1] - Commission revenue in Q1 2024 was 44.4 billion yuan, with the main platform commission rate at 1.03%, and contributions from grocery and overseas businesses reaching 32.3 billion yuan [1] Financial Performance - Pinduoduo's operating costs and sales expenses in Q1 2024 totaled 56.1 billion yuan, accounting for 64.5% of total revenue, a decrease of 5.1 percentage points from Q4 2023 [1] - The company's gross margin improved to 62.3% in Q1 2024, up 1.8 percentage points from Q4 2023 [1] - Sales expenses in Q1 2024 were 23.4 billion yuan, with a sales expense ratio of 27%, down 3.3 percentage points from Q4 2023 [1] - Administrative expenses in Q1 2024 were 1.8 billion yuan, with an administrative expense ratio of 2%, a slight decrease from the previous quarter [1] - R&D expenses in Q1 2024 were 2.9 billion yuan, with an R&D expense ratio of 3.35%, up 0.13 percentage points from Q4 2023 [1] Strategic Initiatives - Pinduoduo is focusing on supply chain and logistics optimization, with Temu introducing customized supply chain solutions in different markets to improve efficiency and reduce costs [1] - The company is enhancing consumer experience and compliance, building a secure and compliant shopping environment, and improving user satisfaction through technology and operations [1] - Pinduoduo has introduced free delivery for e-commerce packages in remote provinces, reducing the distance between delivery points and consumers to within 2 kilometers [1] Future Projections - The report forecasts Pinduoduo's revenue for 2024-2026 to be 470.7 billion yuan, 695 billion yuan, and 838.3 billion yuan, respectively, with Non-GAAP net profit attributable to ordinary shareholders expected to reach 128.3 billion yuan, 205.2 billion yuan, and 312 billion yuan [1] - The company's revenue growth rate is projected to be 90.1% in 2024, 47.7% in 2025, and 20.6% in 2026 [21] - Net profit attributable to ordinary shareholders is expected to grow by 88.9% in 2024, 61.2% in 2025, and 55.3% in 2026 [21] Valuation - The report values Pinduoduo at 15x PE based on 2024 Non-GAAP net profit attributable to ordinary shareholders, with a target market capitalization of approximately 265.9 billion USD [1]
拼多多：2024年一季报点评：利润再超预期，合规运营与供应链建设推动海外业务稳健增长