Added to YB: 2024-09-10
Pitch date: 2024-09-09
PDD [bullish]
PDD Holdings Inc.
+8.16%
current return
Author Info
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Company Info
PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo platform which provides various product categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverages, consumer electronics, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness, and auto accessories; and Temu, an online platform, which enables merchants to streamline their manufacturing and operations.
Market Cap
$1.1T
Pitch Price
$93.01
Price Target
159.00 (+60%)
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.
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