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Added to YB: 2024-09-10

Pitch date: 2024-09-09

PDD [bullish]

PDD Holdings Inc.

+46.25%

current return

Author Info

No bio for this author

Company Info

PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace.

Market Cap

$1.3T

Pitch Price

$93.01

Price Target

159.00 (+17%)

Dividend

N/A

Sector

Broadline Retail

Category

growth

Why PDD Could Be a Value Play in Chinese E-Commerce

PDD: Ecommerce profit pool growing despite headwinds. PDD 34% OPM vs BABA 29%. Est. $12B PF NI (vs $13.6B LTM) at 28% EBIT margin, 20% tax. $240B value ex-cash vs $140B mkt cap. Derating from 20x to 10x PE mirrors BABA. Consider buying PDD, BABA, JD basket at 10x PE for 13% EBIT CAGR exposure.

Read full article (3 min)