PDD Holdings Likely to Face Margin Pressure in Near Term -- Market Talk

Dow Jones03-26

0328 GMT - PDD Holdings is likely to face margin pressure in the near term, HSBC analysts say in a research note. The bank says supply-chain investment, such as subsidizing logistics costs for consumers in China's remote rural areas, is likely to add more pressure on the company's short-term profitability. That said, they expect losses at overseas business Temu to narrow gradually, which might provide a buffer for overall profitability. HSBC trims its forecast for PDD's 2026-27 earnings by 4%-5% to reflect higher supply-chain investment. HSBC keeps its buy rating on PDD with an unchanged target price of US$159.00 on its ADRs, which last closed at US$102.61. (tracy.qu@wsj.com)

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March 25, 2026 23:28 ET (03:28 GMT)

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