HengHeng98 personal page - To The Moon

HengHeng98

No personal profile

22Follow

0Followers

0Topic

0Badge

01-02

Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?

PDD Holdings: A Top E-Commerce Growth Play For 2025

2024-12-13

$NEW ORIENTAL-S(09901)$ Pure garbage company!

2024-12-01

Yes yes. That $1m is reserved for his doctors.

2024-11-22

Don't bloody waste time on Chinese ADR. They have got little investment values regardless what valuations.

PDD: Price Crash Despite Strong Growth

2024-10-23

$New Oriental Education & Technology(EDU)$ Where on earth can you find another more shxtty counter like EDU?

2024-10-23

Typical pump dump.

Sorry, the original content has been removed

2024-10-23

$SMIC(00981)$ The more chip sanctions US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.

2024-10-03

$TAL Education Group(TAL)$

2024-06-11

Issuance doesn't matter.

Go to Tiger App to see more news

{"i18n":{"language":"en_US"},"userPageInfo":{"id":"3585103080334372","uuid":"3585103080334372","gmtCreate":1622009055879,"gmtModify":1622009055879,"name":"HengHeng98","pinyin":"hengheng98","introduction":"","introductionEn":null,"signature":"","avatar":"https://static.laohu8.com/default-avatar.jpg","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":0,"headSize":22,"tweetSize":9,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":0,"name":"","nameTw":"","represent":"","factor":"","iconColor":"","bgColor":""},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":"success","userBadges":[{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.10.09","exceedPercentage":"80.11%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1101},{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.08.22","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1102},{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.08.22","exceedPercentage":"80.76%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.04.17","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.02.22","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001}],"userBadgeCount":5,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":1,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.10.09","exceedPercentage":"80.92%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1101},"individualDisplayBadges":null,"crmLevel":6,"crmLevelSwitch":0,"location":null,"starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":14,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":388150684532920,"gmtCreate":1735804853983,"gmtModify":1735806377795,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?&nbsp;","listText":"Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?&nbsp;","text":"Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/388150684532920","repostId":"1149916326","repostType":2,"repost":{"id":"1149916326","kind":"news","pubTimestamp":1735784097,"share":"https://ttm.financial/m/news/1149916326?lang=&edition=fundamental","pubTime":"2025-01-02 10:14","market":"us","language":"en","title":"PDD Holdings: A Top E-Commerce Growth Play For 2025","url":"https://stock-news.laohu8.com/highlight/detail?id=1149916326","media":"Seeking Alpha","summary":"SummaryPDD Holdings' impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.The company's valuation is attractive, trading at a low","content":"<html><head></head><body><h2 id=\"id_1529669570\">Summary</h2><ul style=\"\"><li><p>PDD Holdings&#39; impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.</p></li><li><p>The company&#39;s valuation is attractive, trading at a lower price-to-earnings ratio compared to Alibaba and JD.com, despite strong top line growth.</p></li><li><p>Risks include fierce competition in the Chinese e-Commerce market and a potential future slowdown in revenue growth.</p></li><li><p>PDD Holdings remains an appealing investment for 2025, given its top line momentum and significant profitability.</p></li></ul><p><a href=\"https://laohu8.com/S/PDD\">PDD Holdings</a>, also known as Pinduoduo, is a leading e-Commerce platform in China and is seeing impressive top line growth, in part because of its highly successful discount e-Commerce platform Temu, which is targeting markets outside of China. The strong upsurge in revenue and earnings is key to the bullish investment case for PDD Holdings, and I believe Pinduoduo is going to see sustained growth momentum in the years ahead. The Chinese e-Commerce enterprise has seen a rapid increase in its market valuation in September, related to optimism about Beijing&#39;s stimulus package, but shares have dropped lately, creating an engagement opportunity for long-term-oriented growth investors.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ee70cfc1b44c054fd5bdd7d6b4a5c110\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"424\"/><span>Data by YCharts</span></p><h2 id=\"id_1750606471\">Previous Rating</h2><p>I rated shares of PDD Holdings a strong buy in my last work on the e-Commerce company in July – 9X P/E, Strong Growth, High Safety Margin – because I liked the company’s long-term growth prospects in the Chinese e-Commerce industry. PDD Holdings is one of the largest e-Commerce platforms in China and therefore primed to benefit from the growth of the Chinese e-Commerce sector. Pinduoduo&#39;s major financial metrics point upward, and shares are trading at an attractive earnings multiplier again.</p><h2 id=\"id_3290882029\">Pinduoduo Crushes the e-Commerce Competition in China in Terms of Growth</h2><p>PDD Holdings is one of the three largest e-Commerce companies in China, next to Alibaba (BABA) and JD.com (JD). PDD Holdings has been chiefly focused on the Chinese market but has made an aggressive push overseas by launching Temu, a wildly popular discount-oriented shopping platform.</p><p>PDD Holdings generated 99.4B Chinese Yuan ($14.1B) in revenue in the September quarter, showing a massive 44% revenue surge. At the same time, PDD Holdings’ operating profit increased 46% year-over-year to 24.3B Chinese Yuan ($3.5B). Pinduoduo also is widely profitable, generating 24.9B Chinese Yuan ($3.6B) in earnings just in the third fiscal quarter.</p><p>Temu, which is focused on buyers outside of China, is responsible for this significant growth boost, with the e-Commerce platform experiencing a surge in its gross merchandise value since its launch in 2022.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f9ae34fe95f493dc5522c4e8d254fbe5\" alt=\"PDD Holdings\" title=\"PDD Holdings\" tg-width=\"640\" tg-height=\"413\"/><span>PDD Holdings</span></p><p>Temu was launched with the express purpose to expand PDD Holdings’ e-Commerce model and cut into the turf of other online retailers outside of China, like Amazon (AMZN). Temu has seen a rapid upsurge in its gross merchandise volume, a key metric for e-Commerce companies that measures the gross dollar amount that has passed through the platform in terms of commerce transactions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b827c5d9c58086c84cd1986ecaddcc7a\" alt=\"ECommerceDB\" title=\"ECommerceDB\" tg-width=\"640\" tg-height=\"405\"/><span>ECommerceDB</span></p><p>Temu is key to Pinduoduo&#39;s growth ambitions outside of China and the company has made considerable progress to grow its financial metrics: revenues, operating income and net income have surged in the last three years, and PDD Holdings has left both Alibaba and JD.com in the dust in terms of all three figures. Going forward, growth in Temu-related gross merchandise volume as well as organic Chinese e-Commerce platform growth will be critical in order to drive an upside revaluation of Pinduoduo&#39;s valuation factor and share price.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d6551fecc4e3ff4c76a3c919709680da\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"639\"/><span>Data by YCharts</span></p><h2 id=\"id_1500034537\">PDD Holdings’ Valuation</h2><p>The e-Commerce platform has seen rapid expansion in 2024 which is mostly due to the surging popularity of Temu. Further, China announced a major stimulus package in September that would see the country relax borrowing restrictions in order to promote economic growth. Other measures included the relaxation of reserve requirements in order to take pressure off of China&#39;s struggling property sector. I have discussed China&#39;s stimulus package in my work on Alibaba: China Stimulus Plan Is A Game Changer.</p><p>After initial excitement about China&#39;s stimulus program in September, shares of e-Commerce companies dropped again, which I believe creates an exciting engagement opportunity for investors that seek a cheap e-Commerce growth play. PDD Holdings is currently valued at a price-to-earnings ratio – based off of 2025 estimated earnings – of 7.7x, while Alibaba and JD.com trade at forward earnings multipliers of 8.8X and 8.1X.</p><p>The industry group average price-to-earnings ratio is 8.2X, so Pinduoduo is still the cheapest amongst the large-scale e-Commerce players in China and trades about 18% below the historical 3-year average P/E ratio. I believe PDD could easily revalue to a 10-11X P/E ratio, assuming that the company can remain as profitable as it is now. A 10-11X earnings multiplier implies a fair value range of $127 to $140 per share.</p><p>Since Pinduoduo is both cheaper than its e-Commerce rivals in China and putting up by far the strongest performance numbers in terms of top line and earnings growth, I believe Pinduoduo currently represents the best value in the industry group. Further, Temu-driven growth is not expected to slow either, with PDD also having by far the strongest annual EPS growth prospects (see below).</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/95d3b90ee10a39afd623b01e674e06fa\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"559\"/><span>Data by YCharts</span></p><h2 id=\"id_3801121534\">Risks with PDD Holdings</h2><p>There are a couple of risks with regard to PDD Holdings. First, competition in the Chinese e-Commerce market is fierce and cut-throat. The emergence of discount-focused e-Commerce platforms like Temu suggests that e-Commerce companies are going to see pressure on their margins going forward, which could prevent an upside revaluation. PDD is also likely, given its past surge in revenues, to grow much slower in the future, as current top line growth rates are hard to maintain long-term. What would change my mind about Pinduoduo is if the e-Commerce company were to see weakening earnings growth.</p><h2 id=\"id_3099768325\">Closing Thoughts</h2><p>PDD Holdings is an attractive China-based e-Commerce play for investors in 2025 given the massive upsurge in revenues, operating income and earnings. Temu is obviously a core asset for Pinduoduo at this point and is responsible for the massive upsurge in revenues and operating income in the last several quarters. PDD Holdings&#39; main advantage, in my opinion, is the company&#39;s unreasonably low valuation based off of earnings, especially when compared against its rivals. With a forward P/E ratio of only 7.7X, Pinduoduo is even cheaper than e-Commerce competitors such as Alibaba... which are not expensive either. I see a ton of potential for PDD Holdings to grow inside and outside of China (via Temu) as well as a highly favorable risk profile for long-term investors.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PDD Holdings: A Top E-Commerce Growth Play For 2025</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPDD Holdings: A Top E-Commerce Growth Play For 2025\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-02 10:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4747154-pdd-holdings-a-top-e-commerce-growth-play-for-2025><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryPDD Holdings' impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.The company's valuation is attractive, trading at a ...</p>\n\n<a href=\"https://seekingalpha.com/article/4747154-pdd-holdings-a-top-e-commerce-growth-play-for-2025\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PDD":"拼多多"},"source_url":"https://seekingalpha.com/article/4747154-pdd-holdings-a-top-e-commerce-growth-play-for-2025","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1149916326","content_text":"SummaryPDD Holdings' impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.The company's valuation is attractive, trading at a lower price-to-earnings ratio compared to Alibaba and JD.com, despite strong top line growth.Risks include fierce competition in the Chinese e-Commerce market and a potential future slowdown in revenue growth.PDD Holdings remains an appealing investment for 2025, given its top line momentum and significant profitability.PDD Holdings, also known as Pinduoduo, is a leading e-Commerce platform in China and is seeing impressive top line growth, in part because of its highly successful discount e-Commerce platform Temu, which is targeting markets outside of China. The strong upsurge in revenue and earnings is key to the bullish investment case for PDD Holdings, and I believe Pinduoduo is going to see sustained growth momentum in the years ahead. The Chinese e-Commerce enterprise has seen a rapid increase in its market valuation in September, related to optimism about Beijing's stimulus package, but shares have dropped lately, creating an engagement opportunity for long-term-oriented growth investors.Data by YChartsPrevious RatingI rated shares of PDD Holdings a strong buy in my last work on the e-Commerce company in July – 9X P/E, Strong Growth, High Safety Margin – because I liked the company’s long-term growth prospects in the Chinese e-Commerce industry. PDD Holdings is one of the largest e-Commerce platforms in China and therefore primed to benefit from the growth of the Chinese e-Commerce sector. Pinduoduo's major financial metrics point upward, and shares are trading at an attractive earnings multiplier again.Pinduoduo Crushes the e-Commerce Competition in China in Terms of GrowthPDD Holdings is one of the three largest e-Commerce companies in China, next to Alibaba (BABA) and JD.com (JD). PDD Holdings has been chiefly focused on the Chinese market but has made an aggressive push overseas by launching Temu, a wildly popular discount-oriented shopping platform.PDD Holdings generated 99.4B Chinese Yuan ($14.1B) in revenue in the September quarter, showing a massive 44% revenue surge. At the same time, PDD Holdings’ operating profit increased 46% year-over-year to 24.3B Chinese Yuan ($3.5B). Pinduoduo also is widely profitable, generating 24.9B Chinese Yuan ($3.6B) in earnings just in the third fiscal quarter.Temu, which is focused on buyers outside of China, is responsible for this significant growth boost, with the e-Commerce platform experiencing a surge in its gross merchandise value since its launch in 2022.PDD HoldingsTemu was launched with the express purpose to expand PDD Holdings’ e-Commerce model and cut into the turf of other online retailers outside of China, like Amazon (AMZN). Temu has seen a rapid upsurge in its gross merchandise volume, a key metric for e-Commerce companies that measures the gross dollar amount that has passed through the platform in terms of commerce transactions.ECommerceDBTemu is key to Pinduoduo's growth ambitions outside of China and the company has made considerable progress to grow its financial metrics: revenues, operating income and net income have surged in the last three years, and PDD Holdings has left both Alibaba and JD.com in the dust in terms of all three figures. Going forward, growth in Temu-related gross merchandise volume as well as organic Chinese e-Commerce platform growth will be critical in order to drive an upside revaluation of Pinduoduo's valuation factor and share price.Data by YChartsPDD Holdings’ ValuationThe e-Commerce platform has seen rapid expansion in 2024 which is mostly due to the surging popularity of Temu. Further, China announced a major stimulus package in September that would see the country relax borrowing restrictions in order to promote economic growth. Other measures included the relaxation of reserve requirements in order to take pressure off of China's struggling property sector. I have discussed China's stimulus package in my work on Alibaba: China Stimulus Plan Is A Game Changer.After initial excitement about China's stimulus program in September, shares of e-Commerce companies dropped again, which I believe creates an exciting engagement opportunity for investors that seek a cheap e-Commerce growth play. PDD Holdings is currently valued at a price-to-earnings ratio – based off of 2025 estimated earnings – of 7.7x, while Alibaba and JD.com trade at forward earnings multipliers of 8.8X and 8.1X.The industry group average price-to-earnings ratio is 8.2X, so Pinduoduo is still the cheapest amongst the large-scale e-Commerce players in China and trades about 18% below the historical 3-year average P/E ratio. I believe PDD could easily revalue to a 10-11X P/E ratio, assuming that the company can remain as profitable as it is now. A 10-11X earnings multiplier implies a fair value range of $127 to $140 per share.Since Pinduoduo is both cheaper than its e-Commerce rivals in China and putting up by far the strongest performance numbers in terms of top line and earnings growth, I believe Pinduoduo currently represents the best value in the industry group. Further, Temu-driven growth is not expected to slow either, with PDD also having by far the strongest annual EPS growth prospects (see below).Data by YChartsRisks with PDD HoldingsThere are a couple of risks with regard to PDD Holdings. First, competition in the Chinese e-Commerce market is fierce and cut-throat. The emergence of discount-focused e-Commerce platforms like Temu suggests that e-Commerce companies are going to see pressure on their margins going forward, which could prevent an upside revaluation. PDD is also likely, given its past surge in revenues, to grow much slower in the future, as current top line growth rates are hard to maintain long-term. What would change my mind about Pinduoduo is if the e-Commerce company were to see weakening earnings growth.Closing ThoughtsPDD Holdings is an attractive China-based e-Commerce play for investors in 2025 given the massive upsurge in revenues, operating income and earnings. Temu is obviously a core asset for Pinduoduo at this point and is responsible for the massive upsurge in revenues and operating income in the last several quarters. PDD Holdings' main advantage, in my opinion, is the company's unreasonably low valuation based off of earnings, especially when compared against its rivals. With a forward P/E ratio of only 7.7X, Pinduoduo is even cheaper than e-Commerce competitors such as Alibaba... which are not expensive either. I see a ton of potential for PDD Holdings to grow inside and outside of China (via Temu) as well as a highly favorable risk profile for long-term investors.","news_type":1},"isVote":1,"tweetType":1,"viewCount":9,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":380978423873688,"gmtCreate":1734056446595,"gmtModify":1734056682511,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/09901\">$NEW ORIENTAL-S(09901)$&nbsp;</a> Pure garbage company!&nbsp;","listText":"<a href=\"https://ttm.financial/S/09901\">$NEW ORIENTAL-S(09901)$&nbsp;</a> Pure garbage company!&nbsp;","text":"$NEW ORIENTAL-S(09901)$ Pure garbage company!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/380978423873688","isVote":1,"tweetType":1,"viewCount":285,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":376892286947368,"gmtCreate":1733032943390,"gmtModify":1733032947314,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"Yes yes. That $1m is reserved for his doctors.","listText":"Yes yes. That $1m is reserved for his doctors.","text":"Yes yes. That $1m is reserved for his doctors.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/376892286947368","isVote":1,"tweetType":1,"viewCount":315,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":373725676208168,"gmtCreate":1732250982338,"gmtModify":1732251195686,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"Don't bloody waste time on Chinese ADR. They have got little&nbsp;investment values regardless what valuations.&nbsp;","listText":"Don't bloody waste time on Chinese ADR. They have got little&nbsp;investment values regardless what valuations.&nbsp;","text":"Don't bloody waste time on Chinese ADR. They have got little investment values regardless what valuations.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/373725676208168","repostId":"2485446914","repostType":4,"repost":{"id":"2485446914","kind":"highlight","pubTimestamp":1732242095,"share":"https://ttm.financial/m/news/2485446914?lang=&edition=fundamental","pubTime":"2024-11-22 10:21","market":"sh","language":"en","title":"PDD: Price Crash Despite Strong Growth","url":"https://stock-news.laohu8.com/highlight/detail?id=2485446914","media":"seekingalpha","summary":"PDD Holdings reported strong Q3 growth, but results slightly missed expectations, leading to a double-digit share price drop despite a 40%+ sales increase.The company faces competition and macroeconom","content":"<html><head></head><body><ul style=\"\"><li><p>PDD Holdings reported strong Q3 growth, but results slightly missed expectations, leading to a double-digit share price drop despite a 40%+ sales increase.</p></li><li><p>The company faces competition and macroeconomic challenges in China, but its non-China business, particularly Temu, remains a key growth driver.</p></li><li><p>PDD stock&#39;s valuation is attractive at 9x net earnings, but risks include China&#39;s economic issues and potential US-China trade tensions.</p></li><li><p>Despite risks, PDD Holdings offers strong growth at a low valuation, making it appealing for those seeking China exposure, though allocation should be cautious.</p></li></ul><h2 id=\"id_3155477107\">Article Thesis</h2><p><a href=\"https://laohu8.com/S/PDD\">PDD Holdings Inc.</a> reported strong business growth for the most recent quarter, but expectations were somewhat higher compared to what the company delivered. Shares slumped by double-digits on Thursday, sending shares to a single-digit earnings multiple. For those not afraid of China exposure, PDD Holdings could be attractive, but risks shouldn&#39;t be ignored.</p><h2 id=\"id_1804130077\">Past Coverage On PDD Holdings</h2><p>I have written about PDD Holdings Inc. here on Seeking Alpha in the past, most recently in August, when shares slumped following the company&#39;s previous earnings release. I gave the company a &#34;Buy&#34; rating back then, with shares rising from just $96 to as much as $140, although PDD Holdings has now given back a large portion of those gains again. With three months having passed since my last article on the Chinese e-commerce player, and with the company releasing its Q3 results on Thursday, it is time for an update.</p><h2 id=\"id_3969469045\">PDD Holdings Q3 Financials</h2><p>Judging by the share price reaction to PDD Holdings&#39; Q3 results, one could have guessed that results were disastrous -- shares are down 10% at the time of writing. But actual business growth was very appealing, although slightly below expectations, as we can see in the following screenshot from Seeking Alpha:</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/08d87420877c80ace21e21c571cc80ee\" alt=\"PDD Holdings results (Seeking Alpha)\" title=\"PDD Holdings results (Seeking Alpha)\" tg-width=\"640\" tg-height=\"211\"/><span>PDD Holdings results (Seeking Alpha)</span></p><p>Revenues missed estimates by around 1%, which is, I believe, far from a disaster, especially since PDD Holdings still grew its sales by more than 40% compared to one year earlier. The earnings per share miss was more pronounced, but a $0.31 earnings per share miss still does not necessarily justify a share price drop of $11, I believe. The market reacted this way, however, which may be due to the market already being worried about China-specific risks such as potential tariffs, China&#39;s real estate market downturn, and so on.</p><h2 id=\"id_1262621592\">PDD Holdings&#39; Results: Growth Continues</h2><p>PDD Holdings is active in more than one country, but China is one of the country&#39;s main markets. There, competition is intense, with players such as Alibaba (BABA) and JD.com (JD) being active as well, and all of these companies are seeking to grow their business over time. At the same time, Chinese consumers are not in an overly strong spot right now, as some still worry about the country&#39;s real estate market, while China&#39;s economic growth is also lower than it was in the past (although still high compared to many other countries in the world).</p><p>While PDD Holdings didn&#39;t break out exact numbers in its earnings report, it is likely, I believe, that Temu&#39;s non-China business remained an important growth driver for PDD&#39;s overall business growth. In China, PDD likely didn&#39;t experience 40%+ revenue growth, as I believe that the relatively new (and controversial) business Temu delivered an outsized portion of PDD&#39;s overall revenue increase.</p><p>Revenue growth of 44% was excellent in absolute terms, but the growth rate was lower compared to the recent past. In the previous quarter, PDD Holdings had delivered an even larger revenue increase of 86%. Overall revenues did not decline, however, as Q3&#39;s revenue of $14.2 billion was slightly higher compared to the previous quarter, when PDD&#39;s sales had totaled $13.4 billion. The comparison had gotten tougher, however, likely due to Temu&#39;s better performance (wider adoption) in Q3 2023 versus Q2 2023. This means that achieving an extremely high relative year-over-year growth rate was easier in this year&#39;s Q2 compared to this year&#39;s Q3. On a sequential basis, revenues grew by around 6%, which pencils out to an annualized growth rate in the mid-20s. Further growth deceleration during the upcoming quarters thus seems quite possible. This isn&#39;t overly surprising, of course, as maintaining a high relative growth rate becomes harder and harder over time as a company grows in size, so it was unrealistic to believe that PDD would grow by 80% per year (or 40% per year) forever. A growth rate in the 20s would be far from bad, I believe, especially when we consider PDD Holdings&#39; undemanding valuation.</p><p>Management&#39;s comments point in the same direction -- intense competition and macro headwinds are resulting in slowing growth. <a href=\"https://laohu8.com/S/VP..UK\">VP</a> of Finance, Ms. Jun Liu, said:</p><blockquote><p><em>“</em><strong><em>Our topline growth further moderated</em></strong><em> quarter-on-quarter amid intensified competition and ongoing external challenges. In our pursuit of high-quality development, we will continue to invest resolutely in building a healthy and sustainable ecosystem, which will be reflected in our results.”</em></p></blockquote><p>Looking at profitability, which is very important for investors, we see that PDD Holdings was able to grow its margins slightly compared to one year earlier. While more pronounced margin growth would have been even better, of course, I still like the fact that the company did not grow its business by sacrificing profits. Instead, the company expanded its margins slightly while being able to grow the business considerably, which is an attractive combination. Operating profits were up 48% compared to the previous year&#39;s quarter on an adjusted basis, while GAAP operating profits rose by 46% over the last year.</p><p>Non-GAAP net earnings per share came in lower than expected but were still up nicely versus the previous year&#39;s quarter, coming in at RMB18.59, which was up a hefty 60% from one year earlier, and which pencils out to $2.65, which was mostly in line with the company-wide net income growth rate, as PDD&#39;s share count didn&#39;t change much over the last year.</p><p>Cash generation was very healthy, at almost $4 billion, although that number was down compared to one year earlier. This could be due to the increased investments management talked about, but investors should nevertheless watch this metric going forward -- further declines in PDD&#39;s cash generation would be negative and might indicate low-quality earnings growth. Based on one quarter&#39;s results, there is no reason to panic, however.</p><p>On the cost side, PDD Holdings experienced an especially large increase in general and administrative expenses, which exploded upwards by 138%, rising to $260 million. That is still not a lot in absolute terms for a company that generates more than $14 billion in revenue, but the growth rate is a bit concerning. If R&amp;D expenses were to grow much, one could argue that increased R&amp;D expenses would lead to higher business growth down the road, but strong growth in G&amp;A expenses is likely not an &#34;investment&#34; that will lead to better products or higher business growth. It would be good if PDD was able to slow down its G&amp;A expense growth in the coming quarters, thus this is another item investors should keep an eye on going forward, I believe.</p><h2 id=\"id_1819407766\">Is PDD Stock A Good Investment?</h2><p>Buying PDD following August&#39;s price crash worked out very well, as PDD recovered quickly in the following weeks. This time, the same might happen -- although there is, of course, no guarantee for that. Based on current profit forecasts for this year, PDD Holdings is trading at just 9x net earnings, which makes for an 11% earnings yield. That is a low valuation in absolute terms, and especially undemanding for a company delivering revenue growth of close to 50% as of the most recent quarter.</p><p>That being said, there are some risks to consider: PDD Holdings is exposed to Chinese consumers, which means possible problems if China&#39;s housing market gets into even deeper problems.</p><p>For those who are not afraid of these risks and who want China exposure, PDD Holdings could be attractive, as it combines a low valuation with strong growth. But PDD isn&#39;t for everyone, and even for those who want to own it, I believe that exposure should be limited -- this isn&#39;t a low-risk stock where I would want an especially large allocation.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PDD: Price Crash Despite Strong Growth</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPDD: Price Crash Despite Strong Growth\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-22 10:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4739392-pdd-price-crash-despite-strong-growth><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>PDD Holdings reported strong Q3 growth, but results slightly missed expectations, leading to a double-digit share price drop despite a 40%+ sales increase.The company faces competition and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4739392-pdd-price-crash-despite-strong-growth\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4504":"桥水持仓","LU2087589342.USD":"BGF ASIAN MULTI-ASSET INCOME \"A6\" (USD) INC","BK4548":"巴美列捷福持仓","BK4505":"高瓴资本持仓","LU2399975544.HKD":"ALLIANZ ALL CHINA EQUITY \"AT\" (HKD) ACC","SG9999002562.SGD":"LionGlobal Asia Pacific SGD","SG9999002463.SGD":"LionGlobal China Growth SGD","SG9999002828.SGD":"Eastspring Investments Unit Trusts - Dragon Peacock A SGD","PDD":"拼多多","LU0823413660.USD":"BNP PARIBAS EMERGING EQUITY \"C\" (USD) INC","LU0605514214.HKD":"FIDELITY CHINA CONSUMER \"A\" (HKD) ACC","LU1720050803.USD":"安联全方位中国股票基金","HK0000306701.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) INC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","LU0047713382.USD":"BGF EMERGING MARKETS \"A2\" ACC","LU1770034418.SGD":"ALL CHINA EQUITY \"A\" (SGDHDG) ACC","LU0588546209.SGD":"Eastspring Investments - China Equity Fund AS SGD","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU2242644610.SGD":"Fidelity China Innovation A-ACC-SGD","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU1794554557.SGD":"Allianz All China Equity AT Acc H2-SGD","LU0348788117.USD":"ALLIANZ EMERGING ASIA EQUITY \"A\" (USD) INC","BK4531":"中概回港概念","LU1981816686.USD":"EASTSPRING INV ASIAN MULTI FACTOR EQUITY \"A\" (USD) ACC","LU0143863198.USD":"CT (LUX) I GLOBAL EMERGING MARKET EQUITIES\"AU\" (USD) ACC","LU0328353924.USD":"UBS (LUX) EQUITY SICAV - GLOBAL EMERGING MARKETS OPPORTUNITY (USD) \"P\" (USD) ACC","LU0594300419.USD":"富达中国消费基金A","LU0051755006.USD":"摩根大通中国A (dist)","LU1868837722.USD":"CT (LUX) I GLOBAL EMERGING MARKET EQUITIES \"2\" (USD) ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU1961090484.USD":"ALLIANZ ALL CHINA EQUITY \"A\" (USD) INC","LU0823397285.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) INC","BK4558":"双十一","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","BK4220":"综合零售","BK4535":"淡马锡持仓","LU0348827113.USD":"ALLIANZ RCM CHINA \"AT\" ACC","LU0589944569.HKD":"ALLIANZ EMERGING ASIA EQUITY \"AT\" (HKD) ACC","LU0359201612.USD":"贝莱德中国基金A2","BK4526":"热门中概股","BK4588":"碎股","LU0823038988.USD":"AMUNDI FUNDS ASIA EQUITY FOCUS  \"A2\" (USD) ACC","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU0039217434.USD":"HSBC GIF CHINESE EQUITY \"AD\" INC","LU0359201885.HKD":"BGF CHINA \"A2\" (HKD) ACC","BK4122":"互联网与直销零售","LU0650527681.SGD":"Fidelity China Consumer A-SGD","LU0823413587.USD":"BNP PARIBAS EMERGING EQUITY \"C\" (USD) ACC","HK0000320264.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) ACC","LU0048580855.USD":"富达大中华区A"},"source_url":"https://seekingalpha.com/article/4739392-pdd-price-crash-despite-strong-growth","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2485446914","content_text":"PDD Holdings reported strong Q3 growth, but results slightly missed expectations, leading to a double-digit share price drop despite a 40%+ sales increase.The company faces competition and macroeconomic challenges in China, but its non-China business, particularly Temu, remains a key growth driver.PDD stock's valuation is attractive at 9x net earnings, but risks include China's economic issues and potential US-China trade tensions.Despite risks, PDD Holdings offers strong growth at a low valuation, making it appealing for those seeking China exposure, though allocation should be cautious.Article ThesisPDD Holdings Inc. reported strong business growth for the most recent quarter, but expectations were somewhat higher compared to what the company delivered. Shares slumped by double-digits on Thursday, sending shares to a single-digit earnings multiple. For those not afraid of China exposure, PDD Holdings could be attractive, but risks shouldn't be ignored.Past Coverage On PDD HoldingsI have written about PDD Holdings Inc. here on Seeking Alpha in the past, most recently in August, when shares slumped following the company's previous earnings release. I gave the company a \"Buy\" rating back then, with shares rising from just $96 to as much as $140, although PDD Holdings has now given back a large portion of those gains again. With three months having passed since my last article on the Chinese e-commerce player, and with the company releasing its Q3 results on Thursday, it is time for an update.PDD Holdings Q3 FinancialsJudging by the share price reaction to PDD Holdings' Q3 results, one could have guessed that results were disastrous -- shares are down 10% at the time of writing. But actual business growth was very appealing, although slightly below expectations, as we can see in the following screenshot from Seeking Alpha:PDD Holdings results (Seeking Alpha)Revenues missed estimates by around 1%, which is, I believe, far from a disaster, especially since PDD Holdings still grew its sales by more than 40% compared to one year earlier. The earnings per share miss was more pronounced, but a $0.31 earnings per share miss still does not necessarily justify a share price drop of $11, I believe. The market reacted this way, however, which may be due to the market already being worried about China-specific risks such as potential tariffs, China's real estate market downturn, and so on.PDD Holdings' Results: Growth ContinuesPDD Holdings is active in more than one country, but China is one of the country's main markets. There, competition is intense, with players such as Alibaba (BABA) and JD.com (JD) being active as well, and all of these companies are seeking to grow their business over time. At the same time, Chinese consumers are not in an overly strong spot right now, as some still worry about the country's real estate market, while China's economic growth is also lower than it was in the past (although still high compared to many other countries in the world).While PDD Holdings didn't break out exact numbers in its earnings report, it is likely, I believe, that Temu's non-China business remained an important growth driver for PDD's overall business growth. In China, PDD likely didn't experience 40%+ revenue growth, as I believe that the relatively new (and controversial) business Temu delivered an outsized portion of PDD's overall revenue increase.Revenue growth of 44% was excellent in absolute terms, but the growth rate was lower compared to the recent past. In the previous quarter, PDD Holdings had delivered an even larger revenue increase of 86%. Overall revenues did not decline, however, as Q3's revenue of $14.2 billion was slightly higher compared to the previous quarter, when PDD's sales had totaled $13.4 billion. The comparison had gotten tougher, however, likely due to Temu's better performance (wider adoption) in Q3 2023 versus Q2 2023. This means that achieving an extremely high relative year-over-year growth rate was easier in this year's Q2 compared to this year's Q3. On a sequential basis, revenues grew by around 6%, which pencils out to an annualized growth rate in the mid-20s. Further growth deceleration during the upcoming quarters thus seems quite possible. This isn't overly surprising, of course, as maintaining a high relative growth rate becomes harder and harder over time as a company grows in size, so it was unrealistic to believe that PDD would grow by 80% per year (or 40% per year) forever. A growth rate in the 20s would be far from bad, I believe, especially when we consider PDD Holdings' undemanding valuation.Management's comments point in the same direction -- intense competition and macro headwinds are resulting in slowing growth. VP of Finance, Ms. Jun Liu, said:“Our topline growth further moderated quarter-on-quarter amid intensified competition and ongoing external challenges. In our pursuit of high-quality development, we will continue to invest resolutely in building a healthy and sustainable ecosystem, which will be reflected in our results.”Looking at profitability, which is very important for investors, we see that PDD Holdings was able to grow its margins slightly compared to one year earlier. While more pronounced margin growth would have been even better, of course, I still like the fact that the company did not grow its business by sacrificing profits. Instead, the company expanded its margins slightly while being able to grow the business considerably, which is an attractive combination. Operating profits were up 48% compared to the previous year's quarter on an adjusted basis, while GAAP operating profits rose by 46% over the last year.Non-GAAP net earnings per share came in lower than expected but were still up nicely versus the previous year's quarter, coming in at RMB18.59, which was up a hefty 60% from one year earlier, and which pencils out to $2.65, which was mostly in line with the company-wide net income growth rate, as PDD's share count didn't change much over the last year.Cash generation was very healthy, at almost $4 billion, although that number was down compared to one year earlier. This could be due to the increased investments management talked about, but investors should nevertheless watch this metric going forward -- further declines in PDD's cash generation would be negative and might indicate low-quality earnings growth. Based on one quarter's results, there is no reason to panic, however.On the cost side, PDD Holdings experienced an especially large increase in general and administrative expenses, which exploded upwards by 138%, rising to $260 million. That is still not a lot in absolute terms for a company that generates more than $14 billion in revenue, but the growth rate is a bit concerning. If R&D expenses were to grow much, one could argue that increased R&D expenses would lead to higher business growth down the road, but strong growth in G&A expenses is likely not an \"investment\" that will lead to better products or higher business growth. It would be good if PDD was able to slow down its G&A expense growth in the coming quarters, thus this is another item investors should keep an eye on going forward, I believe.Is PDD Stock A Good Investment?Buying PDD following August's price crash worked out very well, as PDD recovered quickly in the following weeks. This time, the same might happen -- although there is, of course, no guarantee for that. Based on current profit forecasts for this year, PDD Holdings is trading at just 9x net earnings, which makes for an 11% earnings yield. That is a low valuation in absolute terms, and especially undemanding for a company delivering revenue growth of close to 50% as of the most recent quarter.That being said, there are some risks to consider: PDD Holdings is exposed to Chinese consumers, which means possible problems if China's housing market gets into even deeper problems.For those who are not afraid of these risks and who want China exposure, PDD Holdings could be attractive, as it combines a low valuation with strong growth. But PDD isn't for everyone, and even for those who want to own it, I believe that exposure should be limited -- this isn't a low-risk stock where I would want an especially large allocation.","news_type":1},"isVote":1,"tweetType":1,"viewCount":228,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4133301963989642","authorId":"4133301963989642","name":"Chungcme","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"idStr":"4133301963989642","authorIdStr":"4133301963989642"},"content":"Not true. I got very healthy gains from GDS and Trip.com","text":"Not true. I got very healthy gains from GDS and Trip.com","html":"Not true. I got very healthy gains from GDS and Trip.com"}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":363110293303320,"gmtCreate":1729676505879,"gmtModify":1729676510045,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/EDU\">$New Oriental Education &amp; Technology(EDU)$&nbsp;</a> Where on earth can you find another more shxtty counter like EDU? &nbsp;","listText":"<a href=\"https://ttm.financial/S/EDU\">$New Oriental Education &amp; Technology(EDU)$&nbsp;</a> Where on earth can you find another more shxtty counter like EDU? &nbsp;","text":"$New Oriental Education & Technology(EDU)$ Where on earth can you find another more shxtty counter like EDU?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/363110293303320","isVote":1,"tweetType":1,"viewCount":250,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":363056348573880,"gmtCreate":1729672637789,"gmtModify":1729674957144,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"Typical pump dump.&nbsp;","listText":"Typical pump dump.&nbsp;","text":"Typical pump dump.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/363056348573880","repostId":"1198983283","repostType":2,"isVote":1,"tweetType":1,"viewCount":433,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":362990591156296,"gmtCreate":1729656662845,"gmtModify":1729661584352,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/00981\">$SMIC(00981)$&nbsp;</a> The more chip sanctions&nbsp;US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.&nbsp;","listText":"<a href=\"https://ttm.financial/S/00981\">$SMIC(00981)$&nbsp;</a> The more chip sanctions&nbsp;US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.&nbsp;","text":"$SMIC(00981)$ The more chip sanctions US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/362990591156296","isVote":1,"tweetType":1,"viewCount":435,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":355899445039520,"gmtCreate":1727892922870,"gmtModify":1727914735985,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TAL\">$TAL Education Group(TAL)$&nbsp;</a><v-v data-views=\"0\"></v-v>","listText":"<a href=\"https://ttm.financial/S/TAL\">$TAL Education Group(TAL)$&nbsp;</a><v-v data-views=\"0\"></v-v>","text":"$TAL Education Group(TAL)$","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/355899445039520","isVote":1,"tweetType":1,"viewCount":251,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":315746570522704,"gmtCreate":1718118012854,"gmtModify":1718119294206,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585103080334372","authorIdStr":"3585103080334372"},"themes":[],"htmlText":"Issuance doesn't matter.&nbsp;","listText":"Issuance doesn't matter.&nbsp;","text":"Issuance doesn't matter.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/315746570522704","isVote":1,"tweetType":1,"viewCount":560,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":373725676208168,"gmtCreate":1732250982338,"gmtModify":1732251195686,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"Don't bloody waste time on Chinese ADR. They have got little&nbsp;investment values regardless what valuations.&nbsp;","listText":"Don't bloody waste time on Chinese ADR. They have got little&nbsp;investment values regardless what valuations.&nbsp;","text":"Don't bloody waste time on Chinese ADR. They have got little investment values regardless what valuations.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/373725676208168","repostId":"2485446914","repostType":4,"isVote":1,"tweetType":1,"viewCount":228,"authorTweetTopStatus":1,"verified":2,"comments":[{"author":{"id":"4133301963989642","authorId":"4133301963989642","name":"Chungcme","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"4133301963989642","idStr":"4133301963989642"},"content":"Not true. I got very healthy gains from GDS and Trip.com","text":"Not true. I got very healthy gains from GDS and Trip.com","html":"Not true. I got very healthy gains from GDS and Trip.com"}],"imageCount":0,"langContent":"EN","totalScore":0},{"id":362990591156296,"gmtCreate":1729656662845,"gmtModify":1729661584352,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/00981\">$SMIC(00981)$&nbsp;</a> The more chip sanctions&nbsp;US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.&nbsp;","listText":"<a href=\"https://ttm.financial/S/00981\">$SMIC(00981)$&nbsp;</a> The more chip sanctions&nbsp;US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.&nbsp;","text":"$SMIC(00981)$ The more chip sanctions US places on China, the more valuable these Chinese chipmakers will become. They are existentially critical.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/362990591156296","isVote":1,"tweetType":1,"viewCount":435,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":363056348573880,"gmtCreate":1729672637789,"gmtModify":1729674957144,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"Typical pump dump.&nbsp;","listText":"Typical pump dump.&nbsp;","text":"Typical pump dump.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/363056348573880","repostId":"1198983283","repostType":2,"repost":{"id":"1198983283","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1729672068,"share":"https://ttm.financial/m/news/1198983283?lang=&edition=fundamental","pubTime":"2024-10-23 16:27","market":"us","language":"en","title":"BlackRock Revises Stake in PDD Holdings as 33M Shares, Instead of 132M+ Shares","url":"https://stock-news.laohu8.com/highlight/detail?id=1198983283","media":"Tiger Newspress","summary":"BlackRock radically revised down its holdings in the Chinese e-commerce company, Pinduoduo as of 3Q24, from 132 million shares disclosed on Monday  to 33.01 million shares revised on Tuesday , and the percentage of shares in Pinduoduo was revised from 9.5% to 2.4%, according to a US Securities and Exchange Commission  filing.BlackRock trimmed its holdings in Pinduoduo to 29 million shares in 2Q24, representing a 2.1% stake. Pinduoduo's share price rallied 8.3% at one point yesterday, and closed ","content":"<html><head></head><body><p>BlackRock radically revised down its holdings in the Chinese e-commerce company, Pinduoduo as of 3Q24, from 132 million shares disclosed on Monday (21st) to 33.01 million shares revised on Tuesday (22nd), and the percentage of shares in Pinduoduo was revised from 9.5% to 2.4%, according to a US Securities and Exchange Commission (SEC) filing.<br/><br/>BlackRock trimmed its holdings in Pinduoduo to 29 million shares in 2Q24, representing a 2.1% stake. Pinduoduo&#39;s share price rallied 8.3% at one point yesterday, and closed up 2.9% at US$128.51.</p><p>PDD Holdings shares gained 1.4% in premarket trading Wednesday.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ef08d8e530b71b97a175ad60f84eb4e8\" tg-width=\"542\" tg-height=\"160\"/></p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BlackRock Revises Stake in PDD Holdings as 33M Shares, Instead of 132M+ Shares</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBlackRock Revises Stake in PDD Holdings as 33M Shares, Instead of 132M+ Shares\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-10-23 16:27</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>BlackRock radically revised down its holdings in the Chinese e-commerce company, Pinduoduo as of 3Q24, from 132 million shares disclosed on Monday (21st) to 33.01 million shares revised on Tuesday (22nd), and the percentage of shares in Pinduoduo was revised from 9.5% to 2.4%, according to a US Securities and Exchange Commission (SEC) filing.<br/><br/>BlackRock trimmed its holdings in Pinduoduo to 29 million shares in 2Q24, representing a 2.1% stake. Pinduoduo&#39;s share price rallied 8.3% at one point yesterday, and closed up 2.9% at US$128.51.</p><p>PDD Holdings shares gained 1.4% in premarket trading Wednesday.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ef08d8e530b71b97a175ad60f84eb4e8\" tg-width=\"542\" tg-height=\"160\"/></p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PDD":"拼多多"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1198983283","content_text":"BlackRock radically revised down its holdings in the Chinese e-commerce company, Pinduoduo as of 3Q24, from 132 million shares disclosed on Monday (21st) to 33.01 million shares revised on Tuesday (22nd), and the percentage of shares in Pinduoduo was revised from 9.5% to 2.4%, according to a US Securities and Exchange Commission (SEC) filing.BlackRock trimmed its holdings in Pinduoduo to 29 million shares in 2Q24, representing a 2.1% stake. Pinduoduo's share price rallied 8.3% at one point yesterday, and closed up 2.9% at US$128.51.PDD Holdings shares gained 1.4% in premarket trading Wednesday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":433,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":315746570522704,"gmtCreate":1718118012854,"gmtModify":1718119294206,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"Issuance doesn't matter.&nbsp;","listText":"Issuance doesn't matter.&nbsp;","text":"Issuance doesn't matter.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/315746570522704","isVote":1,"tweetType":1,"viewCount":560,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":388150684532920,"gmtCreate":1735804853983,"gmtModify":1735806377795,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?&nbsp;","listText":"Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?&nbsp;","text":"Garbage company! Since when the share prices has gone higher despite the low PE ratio And high growth?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/388150684532920","repostId":"1149916326","repostType":2,"repost":{"id":"1149916326","kind":"news","pubTimestamp":1735784097,"share":"https://ttm.financial/m/news/1149916326?lang=&edition=fundamental","pubTime":"2025-01-02 10:14","market":"us","language":"en","title":"PDD Holdings: A Top E-Commerce Growth Play For 2025","url":"https://stock-news.laohu8.com/highlight/detail?id=1149916326","media":"Seeking Alpha","summary":"SummaryPDD Holdings' impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.The company's valuation is attractive, trading at a low","content":"<html><head></head><body><h2 id=\"id_1529669570\">Summary</h2><ul style=\"\"><li><p>PDD Holdings&#39; impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.</p></li><li><p>The company&#39;s valuation is attractive, trading at a lower price-to-earnings ratio compared to Alibaba and JD.com, despite strong top line growth.</p></li><li><p>Risks include fierce competition in the Chinese e-Commerce market and a potential future slowdown in revenue growth.</p></li><li><p>PDD Holdings remains an appealing investment for 2025, given its top line momentum and significant profitability.</p></li></ul><p><a href=\"https://laohu8.com/S/PDD\">PDD Holdings</a>, also known as Pinduoduo, is a leading e-Commerce platform in China and is seeing impressive top line growth, in part because of its highly successful discount e-Commerce platform Temu, which is targeting markets outside of China. The strong upsurge in revenue and earnings is key to the bullish investment case for PDD Holdings, and I believe Pinduoduo is going to see sustained growth momentum in the years ahead. The Chinese e-Commerce enterprise has seen a rapid increase in its market valuation in September, related to optimism about Beijing&#39;s stimulus package, but shares have dropped lately, creating an engagement opportunity for long-term-oriented growth investors.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ee70cfc1b44c054fd5bdd7d6b4a5c110\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"424\"/><span>Data by YCharts</span></p><h2 id=\"id_1750606471\">Previous Rating</h2><p>I rated shares of PDD Holdings a strong buy in my last work on the e-Commerce company in July – 9X P/E, Strong Growth, High Safety Margin – because I liked the company’s long-term growth prospects in the Chinese e-Commerce industry. PDD Holdings is one of the largest e-Commerce platforms in China and therefore primed to benefit from the growth of the Chinese e-Commerce sector. Pinduoduo&#39;s major financial metrics point upward, and shares are trading at an attractive earnings multiplier again.</p><h2 id=\"id_3290882029\">Pinduoduo Crushes the e-Commerce Competition in China in Terms of Growth</h2><p>PDD Holdings is one of the three largest e-Commerce companies in China, next to Alibaba (BABA) and JD.com (JD). PDD Holdings has been chiefly focused on the Chinese market but has made an aggressive push overseas by launching Temu, a wildly popular discount-oriented shopping platform.</p><p>PDD Holdings generated 99.4B Chinese Yuan ($14.1B) in revenue in the September quarter, showing a massive 44% revenue surge. At the same time, PDD Holdings’ operating profit increased 46% year-over-year to 24.3B Chinese Yuan ($3.5B). Pinduoduo also is widely profitable, generating 24.9B Chinese Yuan ($3.6B) in earnings just in the third fiscal quarter.</p><p>Temu, which is focused on buyers outside of China, is responsible for this significant growth boost, with the e-Commerce platform experiencing a surge in its gross merchandise value since its launch in 2022.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f9ae34fe95f493dc5522c4e8d254fbe5\" alt=\"PDD Holdings\" title=\"PDD Holdings\" tg-width=\"640\" tg-height=\"413\"/><span>PDD Holdings</span></p><p>Temu was launched with the express purpose to expand PDD Holdings’ e-Commerce model and cut into the turf of other online retailers outside of China, like Amazon (AMZN). Temu has seen a rapid upsurge in its gross merchandise volume, a key metric for e-Commerce companies that measures the gross dollar amount that has passed through the platform in terms of commerce transactions.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b827c5d9c58086c84cd1986ecaddcc7a\" alt=\"ECommerceDB\" title=\"ECommerceDB\" tg-width=\"640\" tg-height=\"405\"/><span>ECommerceDB</span></p><p>Temu is key to Pinduoduo&#39;s growth ambitions outside of China and the company has made considerable progress to grow its financial metrics: revenues, operating income and net income have surged in the last three years, and PDD Holdings has left both Alibaba and JD.com in the dust in terms of all three figures. Going forward, growth in Temu-related gross merchandise volume as well as organic Chinese e-Commerce platform growth will be critical in order to drive an upside revaluation of Pinduoduo&#39;s valuation factor and share price.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d6551fecc4e3ff4c76a3c919709680da\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"639\"/><span>Data by YCharts</span></p><h2 id=\"id_1500034537\">PDD Holdings’ Valuation</h2><p>The e-Commerce platform has seen rapid expansion in 2024 which is mostly due to the surging popularity of Temu. Further, China announced a major stimulus package in September that would see the country relax borrowing restrictions in order to promote economic growth. Other measures included the relaxation of reserve requirements in order to take pressure off of China&#39;s struggling property sector. I have discussed China&#39;s stimulus package in my work on Alibaba: China Stimulus Plan Is A Game Changer.</p><p>After initial excitement about China&#39;s stimulus program in September, shares of e-Commerce companies dropped again, which I believe creates an exciting engagement opportunity for investors that seek a cheap e-Commerce growth play. PDD Holdings is currently valued at a price-to-earnings ratio – based off of 2025 estimated earnings – of 7.7x, while Alibaba and JD.com trade at forward earnings multipliers of 8.8X and 8.1X.</p><p>The industry group average price-to-earnings ratio is 8.2X, so Pinduoduo is still the cheapest amongst the large-scale e-Commerce players in China and trades about 18% below the historical 3-year average P/E ratio. I believe PDD could easily revalue to a 10-11X P/E ratio, assuming that the company can remain as profitable as it is now. A 10-11X earnings multiplier implies a fair value range of $127 to $140 per share.</p><p>Since Pinduoduo is both cheaper than its e-Commerce rivals in China and putting up by far the strongest performance numbers in terms of top line and earnings growth, I believe Pinduoduo currently represents the best value in the industry group. Further, Temu-driven growth is not expected to slow either, with PDD also having by far the strongest annual EPS growth prospects (see below).</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/95d3b90ee10a39afd623b01e674e06fa\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"559\"/><span>Data by YCharts</span></p><h2 id=\"id_3801121534\">Risks with PDD Holdings</h2><p>There are a couple of risks with regard to PDD Holdings. First, competition in the Chinese e-Commerce market is fierce and cut-throat. The emergence of discount-focused e-Commerce platforms like Temu suggests that e-Commerce companies are going to see pressure on their margins going forward, which could prevent an upside revaluation. PDD is also likely, given its past surge in revenues, to grow much slower in the future, as current top line growth rates are hard to maintain long-term. What would change my mind about Pinduoduo is if the e-Commerce company were to see weakening earnings growth.</p><h2 id=\"id_3099768325\">Closing Thoughts</h2><p>PDD Holdings is an attractive China-based e-Commerce play for investors in 2025 given the massive upsurge in revenues, operating income and earnings. Temu is obviously a core asset for Pinduoduo at this point and is responsible for the massive upsurge in revenues and operating income in the last several quarters. PDD Holdings&#39; main advantage, in my opinion, is the company&#39;s unreasonably low valuation based off of earnings, especially when compared against its rivals. With a forward P/E ratio of only 7.7X, Pinduoduo is even cheaper than e-Commerce competitors such as Alibaba... which are not expensive either. I see a ton of potential for PDD Holdings to grow inside and outside of China (via Temu) as well as a highly favorable risk profile for long-term investors.</p></body></html>","source":"lsy1728464409321","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PDD Holdings: A Top E-Commerce Growth Play For 2025</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPDD Holdings: A Top E-Commerce Growth Play For 2025\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-02 10:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4747154-pdd-holdings-a-top-e-commerce-growth-play-for-2025><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryPDD Holdings' impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.The company's valuation is attractive, trading at a ...</p>\n\n<a href=\"https://seekingalpha.com/article/4747154-pdd-holdings-a-top-e-commerce-growth-play-for-2025\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"PDD":"拼多多"},"source_url":"https://seekingalpha.com/article/4747154-pdd-holdings-a-top-e-commerce-growth-play-for-2025","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1149916326","content_text":"SummaryPDD Holdings' impressive revenue and earnings growth, driven by its discount e-Commerce platform Temu, supports a bullish investment case.The company's valuation is attractive, trading at a lower price-to-earnings ratio compared to Alibaba and JD.com, despite strong top line growth.Risks include fierce competition in the Chinese e-Commerce market and a potential future slowdown in revenue growth.PDD Holdings remains an appealing investment for 2025, given its top line momentum and significant profitability.PDD Holdings, also known as Pinduoduo, is a leading e-Commerce platform in China and is seeing impressive top line growth, in part because of its highly successful discount e-Commerce platform Temu, which is targeting markets outside of China. The strong upsurge in revenue and earnings is key to the bullish investment case for PDD Holdings, and I believe Pinduoduo is going to see sustained growth momentum in the years ahead. The Chinese e-Commerce enterprise has seen a rapid increase in its market valuation in September, related to optimism about Beijing's stimulus package, but shares have dropped lately, creating an engagement opportunity for long-term-oriented growth investors.Data by YChartsPrevious RatingI rated shares of PDD Holdings a strong buy in my last work on the e-Commerce company in July – 9X P/E, Strong Growth, High Safety Margin – because I liked the company’s long-term growth prospects in the Chinese e-Commerce industry. PDD Holdings is one of the largest e-Commerce platforms in China and therefore primed to benefit from the growth of the Chinese e-Commerce sector. Pinduoduo's major financial metrics point upward, and shares are trading at an attractive earnings multiplier again.Pinduoduo Crushes the e-Commerce Competition in China in Terms of GrowthPDD Holdings is one of the three largest e-Commerce companies in China, next to Alibaba (BABA) and JD.com (JD). PDD Holdings has been chiefly focused on the Chinese market but has made an aggressive push overseas by launching Temu, a wildly popular discount-oriented shopping platform.PDD Holdings generated 99.4B Chinese Yuan ($14.1B) in revenue in the September quarter, showing a massive 44% revenue surge. At the same time, PDD Holdings’ operating profit increased 46% year-over-year to 24.3B Chinese Yuan ($3.5B). Pinduoduo also is widely profitable, generating 24.9B Chinese Yuan ($3.6B) in earnings just in the third fiscal quarter.Temu, which is focused on buyers outside of China, is responsible for this significant growth boost, with the e-Commerce platform experiencing a surge in its gross merchandise value since its launch in 2022.PDD HoldingsTemu was launched with the express purpose to expand PDD Holdings’ e-Commerce model and cut into the turf of other online retailers outside of China, like Amazon (AMZN). Temu has seen a rapid upsurge in its gross merchandise volume, a key metric for e-Commerce companies that measures the gross dollar amount that has passed through the platform in terms of commerce transactions.ECommerceDBTemu is key to Pinduoduo's growth ambitions outside of China and the company has made considerable progress to grow its financial metrics: revenues, operating income and net income have surged in the last three years, and PDD Holdings has left both Alibaba and JD.com in the dust in terms of all three figures. Going forward, growth in Temu-related gross merchandise volume as well as organic Chinese e-Commerce platform growth will be critical in order to drive an upside revaluation of Pinduoduo's valuation factor and share price.Data by YChartsPDD Holdings’ ValuationThe e-Commerce platform has seen rapid expansion in 2024 which is mostly due to the surging popularity of Temu. Further, China announced a major stimulus package in September that would see the country relax borrowing restrictions in order to promote economic growth. Other measures included the relaxation of reserve requirements in order to take pressure off of China's struggling property sector. I have discussed China's stimulus package in my work on Alibaba: China Stimulus Plan Is A Game Changer.After initial excitement about China's stimulus program in September, shares of e-Commerce companies dropped again, which I believe creates an exciting engagement opportunity for investors that seek a cheap e-Commerce growth play. PDD Holdings is currently valued at a price-to-earnings ratio – based off of 2025 estimated earnings – of 7.7x, while Alibaba and JD.com trade at forward earnings multipliers of 8.8X and 8.1X.The industry group average price-to-earnings ratio is 8.2X, so Pinduoduo is still the cheapest amongst the large-scale e-Commerce players in China and trades about 18% below the historical 3-year average P/E ratio. I believe PDD could easily revalue to a 10-11X P/E ratio, assuming that the company can remain as profitable as it is now. A 10-11X earnings multiplier implies a fair value range of $127 to $140 per share.Since Pinduoduo is both cheaper than its e-Commerce rivals in China and putting up by far the strongest performance numbers in terms of top line and earnings growth, I believe Pinduoduo currently represents the best value in the industry group. Further, Temu-driven growth is not expected to slow either, with PDD also having by far the strongest annual EPS growth prospects (see below).Data by YChartsRisks with PDD HoldingsThere are a couple of risks with regard to PDD Holdings. First, competition in the Chinese e-Commerce market is fierce and cut-throat. The emergence of discount-focused e-Commerce platforms like Temu suggests that e-Commerce companies are going to see pressure on their margins going forward, which could prevent an upside revaluation. PDD is also likely, given its past surge in revenues, to grow much slower in the future, as current top line growth rates are hard to maintain long-term. What would change my mind about Pinduoduo is if the e-Commerce company were to see weakening earnings growth.Closing ThoughtsPDD Holdings is an attractive China-based e-Commerce play for investors in 2025 given the massive upsurge in revenues, operating income and earnings. Temu is obviously a core asset for Pinduoduo at this point and is responsible for the massive upsurge in revenues and operating income in the last several quarters. PDD Holdings' main advantage, in my opinion, is the company's unreasonably low valuation based off of earnings, especially when compared against its rivals. With a forward P/E ratio of only 7.7X, Pinduoduo is even cheaper than e-Commerce competitors such as Alibaba... which are not expensive either. I see a ton of potential for PDD Holdings to grow inside and outside of China (via Temu) as well as a highly favorable risk profile for long-term investors.","news_type":1},"isVote":1,"tweetType":1,"viewCount":9,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":380978423873688,"gmtCreate":1734056446595,"gmtModify":1734056682511,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/09901\">$NEW ORIENTAL-S(09901)$&nbsp;</a> Pure garbage company!&nbsp;","listText":"<a href=\"https://ttm.financial/S/09901\">$NEW ORIENTAL-S(09901)$&nbsp;</a> Pure garbage company!&nbsp;","text":"$NEW ORIENTAL-S(09901)$ Pure garbage company!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/380978423873688","isVote":1,"tweetType":1,"viewCount":285,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":376892286947368,"gmtCreate":1733032943390,"gmtModify":1733032947314,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"Yes yes. That $1m is reserved for his doctors.","listText":"Yes yes. That $1m is reserved for his doctors.","text":"Yes yes. That $1m is reserved for his doctors.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/376892286947368","isVote":1,"tweetType":1,"viewCount":315,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":363110293303320,"gmtCreate":1729676505879,"gmtModify":1729676510045,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/EDU\">$New Oriental Education &amp; Technology(EDU)$&nbsp;</a> Where on earth can you find another more shxtty counter like EDU? &nbsp;","listText":"<a href=\"https://ttm.financial/S/EDU\">$New Oriental Education &amp; Technology(EDU)$&nbsp;</a> Where on earth can you find another more shxtty counter like EDU? &nbsp;","text":"$New Oriental Education & Technology(EDU)$ Where on earth can you find another more shxtty counter like EDU?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/363110293303320","isVote":1,"tweetType":1,"viewCount":250,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":355899445039520,"gmtCreate":1727892922870,"gmtModify":1727914735985,"author":{"id":"3585103080334372","authorId":"3585103080334372","name":"HengHeng98","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585103080334372","idStr":"3585103080334372"},"themes":[],"htmlText":"<a href=\"https://ttm.financial/S/TAL\">$TAL Education Group(TAL)$&nbsp;</a><v-v data-views=\"0\"></v-v>","listText":"<a href=\"https://ttm.financial/S/TAL\">$TAL Education Group(TAL)$&nbsp;</a><v-v data-views=\"0\"></v-v>","text":"$TAL Education Group(TAL)$","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/355899445039520","isVote":1,"tweetType":1,"viewCount":251,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}