Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.</li>
<li>In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.</li>
<li>We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.</li>
</ul>


PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.
In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.
We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.


Pinduoduo (PDD): 3Q25, Growth Stops Declining, Op Cashflow Rises Again After a Year

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>PDD Holdings, Inc.'s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.</li><li>The company's revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.</li><li>However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company's substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.</li></ul>

PDD Holdings, Inc.'s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.The company's revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company's substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.

PDD Holdings’ Global Expansion Efforts Paying Off? How It Plans to Win the Supply Chain Race!

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li><strong>Pinduoduo Holdings Inc. </strong>on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition at home and new tariff challenges abroad for its overseas arm Temu.</li><li>The Nasdaq-listed company posted second-quarter revenue of 103.99 billion yuan ($14.5billion), just above market expectations and up 7% from a year earlier. That marked the fifth straight quarter of deceleration and the slowest pace since mid-2022.</li><li>Pinduoduo’s meteoric rise since launching Temu in September 2022 peaked with a 131% revenue surge in the first quarter of 2024. Growth has slowed each quarter since, falling to 86% in the second quarter of 2024, 44% in the third, 24% in the fourth, and only 10% in the first quarter of 2025.</li></ul>

Pinduoduo Holdings Inc. on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition at home and new tariff challenges abroad for its overseas arm Temu.The Nasdaq-listed company posted second-quarter revenue of 103.99 billion yuan ($14.5billion), just above market expectations and up 7% from a year earlier. That marked the fifth straight quarter of deceleration and the slowest pace since mid-2022.Pinduoduo’s meteoric rise since launching Temu in September 2022 peaked with a 131% revenue surge in the first quarter of 2024. Growth has slowed each quarter since, falling to 86% in the second quarter of 2024, 44% in the third, 24% in the fourth, and only 10% in the first quarter of 2025.

Pinduoduo’s Growth Slows as Competition, Tariffs Hit Temu Expansion 

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>We see 281 Chinese companies listed on U.S Stock Exchanges with a total market cap of US$869bn. 32 of these companies are listed on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a>. </li>
<li>If the rumours of Chinese stocks being delisted from U.S. Exchanges gathers steam, we could see a wave of secondary listings in Hong Kong.</li>
<li>
<a href="https://www.smartkarma.com/entities/pdd-holdings-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">PDD Holdings</a>, <a href="https://www.smartkarma.com/entities/full-truck-alliance-co-ltd" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance</a>, <a href="https://www.smartkarma.com/entities/vipshop-holdings-ltd-adr" target="_blank" data-smartkarma-citation="entities:1088:1" rel="noopener">Vipshop Holdings</a>, <a href="https://www.smartkarma.com/entities/tal-education-group" target="_blank" data-smartkarma-citation="entities:1124:1" rel="noopener">TAL Education</a> and <a href="https://www.smartkarma.com/entities/zeekr-intelligent-technology-holding" target="_blank" data-smartkarma-citation="entities:36785:1" rel="noopener">ZEEKR</a> are the largest China ADRs with no HK listing and could come under pressure.</li>
</ul>


We see 281 Chinese companies listed on U.S Stock Exchanges with a total market cap of US$869bn. 32 of these companies are listed on the HKEX (388 HK). 
If the rumours of Chinese stocks being delisted from U.S. Exchanges gathers steam, we could see a wave of secondary listings in Hong Kong.

PDD Holdings, Full Truck Alliance, Vipshop Holdings, TAL Education and ZEEKR are the largest China ADRs with no HK listing and could come under pressure.


What if China ADRs Are Delisted from US Exchanges?

<ul>
<li>Transaction services revenue was stagnant due to high comparison base.</li>
<li>The gross margin declined significantly due to the overseas expansion.</li>
<li>However, we believe revenue growth and margins will be stable in the long run.</li>
</ul>


Transaction services revenue was stagnant due to high comparison base.
The gross margin declined significantly due to the overseas expansion.
However, we believe revenue growth and margins will be stable in the long run.


PDD (PDD): 2Q25, Impacted by High Comparison Base and Overseas Expansion

China

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

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PDD Holdings (PDD US)

Pinduoduo (PDD): 3Q25, Growth Stops Declining, Op Cashflow Rises Again After a Year

PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25. In 3Q25, operating cash flows stopped decreasing after a year and grew...

Ming Lu

PDD Holdings’ Global Expansion Efforts Paying Off? How It Plans to Win the Supply Chain Race!

PDD Holdings, Inc.'s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial...

Baptista Research

Pinduoduo’s Growth Slows as Competition, Tariffs Hit Temu Expansion

Pinduoduo Holdings Inc. on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition...

Caixin Global

What if China ADRs Are Delisted from US Exchanges?

The escalating tariff wars have increased calls in the U.S for Chinese companies to be delisted. While there have been few mentions of an...

Brian Freitas

PDD (PDD): 2Q25, Impacted by High Comparison Base and Overseas Expansion

Transaction services revenue was stagnant due to high comparison base. The gross margin declined due to overseas expansion. But we believe the...

Ming Lu

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