To The Moon

$Pinduoduo Inc.(PDD)$Pinduoduo Inc. posted higher sales and earnings for the second quarter, as the agriculture and e-commerce company said it benefited from the recovery of the Chinese consumer.

The Chinese company reported profit of 8.90 billion yuan, or $1.33 billion, for the three months ended June 30, compared with 2.41 billion yuan a year earlier. Earnings per American depositary share came in at 6.22 yuan, or 93 cents, compared with 1.69 yuan in the same period a year earlier.

Adjusted earnings came to $1.13 per ADS, topping analyst expectations for adjusted earnings of 43 cents per ADS.

Revenue rose 36% to 31.44 billion yuan, or $4.69 billion. Analysts surveyed by FactSet were expecting revenue of $3.49 billion.

"We saw a recovery in consumer sentiment in the second quarter especially during the 618 shopping festival, a reflection of the resilience of overall consumption," Chairman and Chief Executive Lei Chen said.

Vice President of Finance Jun Liu said the postponement of some projects and some lower business-related expenses during the first half of the quarter affected overall expenses.

ADSs of Pinduoduo, which are traded on the Nasdaq, rose almost 8% in premarket trading to $62.11.

Target price for $Pinduoduo Inc.(PDD)$$50

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