External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>PDD Holdings (PDD) announced (22 May) 1Q24 results: revenue was up 131% YoY (1Q23: 58%; 4Q23: 123%) to RMB86.8bn, 13% ahead of Bloomberg consensus, which we attribute to a stronger-than-expected increase in monetization of domestic business, and more rapid-than-expected international expansion.</li><li>Non-GAAP net profit increased by 202% YoY to RMB30.6bn, ahead of consensus at RMB15.5bn, which we attribute to better-than-expected domestic business profit generation driven by monetization expansion aided by the launch of new advertising products since 4Q23.</li><li>The results echoed our view that PDD still has room to drive a further increase in monetization rate, and we see its overseas expansion on track to support PDD’s long-term revenue and earnings growth. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

PDD Holdings (PDD) announced (22 May) 1Q24 results: revenue was up 131% YoY (1Q23: 58%; 4Q23: 123%) to RMB86.8bn, 13% ahead of Bloomberg consensus, which we attribute to a stronger-than-expected increase in monetization of domestic business, and more rapid-than-expected international expansion.Non-GAAP net profit increased by 202% YoY to RMB30.6bn, ahead of consensus at RMB15.5bn, which we attribute to better-than-expected domestic business profit generation driven by monetization expansion aided by the launch of new advertising products since 4Q23.The results echoed our view that PDD still has room to drive a further increase in monetization rate, and we see its overseas expansion on track to support PDD’s long-term revenue and earnings growth. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PDD Holdings (PDD US) - Increased Monetization Drove a Strong Beat on Results

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.

<ul>
<li>Total revenue rose by 131% in 1Q24 with advertising up by 56% YoY and commission up by 327% YoY.</li>
<li>In 1Q24, both the operating profit and the operating margin reached record highs.</li>
<li>The historical price / sales ratios suggests a significant upside. Buy.</li>
</ul>


Total revenue rose by 131% in 1Q24 with advertising up by 56% YoY and commission up by 327% YoY.
In 1Q24, both the operating profit and the operating margin reached record highs.
The historical price / sales ratios suggests a significant upside. Buy.


PDD (PDD US): 1Q24, Rev Up by 131% and Margin Reaching Historical High

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>NTES US/700 HK: The NPPA has released the results for May's domestic game code license approvals.(+)</li>
<li>PDD US /BABA US /JD US /3690 HK/VIPS US : NBS publishes data social retail consumption data for April 2024 (+/+/+/+/-)</li>
<li>700 HK/BIDU US: Tencent announced the upcoming release of its consumer LLM application "Tencent Yuanbao."（/////）</li>
</ul>


NTES US/700 HK: The NPPA has released the results for May's domestic game code license approvals.(+)
PDD US /BABA US /JD US /3690 HK/VIPS US : NBS publishes data social retail consumption data for April 2024 (+/+/+/+/-)
700 HK/BIDU US: Tencent announced the upcoming release of its consumer LLM application "Tencent Yuanbao."（/////）


[Blue Lotus Daily - TMT Update]:NTES US/700 HK/PDD US /BABA US /JD US /3690 HK/VIPS US/BIDU US

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

HD Hyundai Heavy Industries  / Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, Indian IPOs continued to do well, we also looked at two upcoming deals in Hong Kong.</li>
<li>On the placement front, last week ended up being one of the busiest ones so far this year with five deals live just on Thursday night alone. </li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Indian IPOs continued to do well, we also looked at two upcoming deals in Hong Kong.
On the placement front, last week ended up being one of the busiest ones so far this year with five deals live just on Thursday night alone. 


ECM Weekly (20th May 2024) -Lalatech, Go Digit, Aadhar, TBO Tek, Ecopro, Nexus, Modec, Hyundai Heavy

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>We are more bullish on PDD’s 1Q24 results on the back of better monetization of domestic e-commerce business and fast and quality growth of TEMU.</li>
<li>We now expect 1Q24 adjusted earnings to almost double yoy to RMB20 billion, much higher than our previous estimate of 50% yoy growth and exceeding consensus by ~30%.</li>
<li>Moreover, we believe earnings growth will be steady throughout 2024 instead of slowing down as we thought. 10x FY24 earnings against 80% yoy growth lead us to see 50%+ upside.</li>
</ul>


We are more bullish on PDD’s 1Q24 results on the back of better monetization of domestic e-commerce business and fast and quality growth of TEMU.
We now expect 1Q24 adjusted earnings to almost double yoy to RMB20 billion, much higher than our previous estimate of 50% yoy growth and exceeding consensus by ~30%.
Moreover, we believe earnings growth will be steady throughout 2024 instead of slowing down as we thought. 10x FY24 earnings against 80% yoy growth lead us to see 50%+ upside.


Pinduoduo（PDD US): Growth Stock Priced as Value Play

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

PDD Holdings (PDD US)