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.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Consumption sentiment and offline activities’ recovery pace continued to weigh on internet sector’s 3Q financials performance.</li><li>Looking into 4Q and 2023, business model robustness, operating leverage improvement, and ability to expand into new revenue streams will be the key stock alpha drivers, while the heavily under-owned China Internet sector will remain sensitive to policies and other sentiment related beta drivers.</li><li>We expect leading technology companies will play vital role in building digital infrastructure and empowering enterprise digital transformation. </li></ul></div></div></div></div><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>

Consumption sentiment and offline activities’ recovery pace continued to weigh on internet sector’s 3Q financials performance.Looking into 4Q and 2023, business model robustness, operating leverage improvement, and ability to expand into new revenue streams will be the key stock alpha drivers, while the heavily under-owned China Internet sector will remain sensitive to policies and other sentiment related beta drivers.We expect leading technology companies will play vital role in building digital infrastructure and empowering enterprise digital transformation. 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.

China Internet Sector – 3Q22 preview: near term bumpy recovery

<div><div><div><div><ul><li>Golden week data missed market’s already low expectation for all three major categories - property sales, domestic tourism spending and auto sales.</li><li>4Q is unlikely to be a big surprise as property and its supply chain (20-30% of GDP) will still be the major drag that could neutralize the still resilient auto and gradually recovering consumption.</li><li>Together with more market volatility from pandemic and CPC meeting, we recommend investors to avoid one-sided long or short, but focus on pair trade opportunities to play the difference of BtoC over BtoB as BtoB is more vulnerable in terms of bad debts and pricing power than BtoC amid weak macro.</li></ul></div></div></div></div><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>

Golden week data missed market’s already low expectation for all three major categories - property sales, domestic tourism spending and auto sales.4Q is unlikely to be a big surprise as property and its supply chain (20-30% of GDP) will still be the major drag that could neutralize the still resilient auto and gradually recovering consumption.Together with more market volatility from pandemic and CPC meeting, we recommend investors to avoid one-sided long or short, but focus on pair trade opportunities to play the difference of BtoC over BtoB as BtoB is more vulnerable in terms of bad debts and pricing power than BtoC amid weak macro.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.

Cross sector report – Post-Golden Week: More positive on BToC recovery potential; Cautious on BToB

Equity Bottom-Up

<ul><li>PDD Holdings (PDD) announced (25 Aug) 2Q25 results: revenue was up 7% YoY (1Q25: 10%) to RMB104.0bn, inline with Bloomberg consensus estimates, which was driven by a 1% beat in online marketing services and others, but offset by the 1% miss in transaction services fees that we attributed to the impact from change in “de minimis exemption” policy in the U.S. market.</li><li>Non-GAAP NP decreased by 5% YoY to RMB32.7bn but was 46% better than consensus, driven by the 20% beat in OP and the RMB10.4bn interest and investment income.</li><li>Although PDD is still in an investment stage to enhance platform ecosystem, as well as to improve quality and diversity of supply, the beat in operating profit likely speaks to a better-than-feared impact from incremental sales and marketing spend amid the backdrop of national subsidies. </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 (25 Aug) 2Q25 results: revenue was up 7% YoY (1Q25: 10%) to RMB104.0bn, inline with Bloomberg consensus estimates, which was driven by a 1% beat in online marketing services and others, but offset by the 1% miss in transaction services fees that we attributed to the impact from change in “de minimis exemption” policy in the U.S. market.Non-GAAP NP decreased by 5% YoY to RMB32.7bn but was 46% better than consensus, driven by the 20% beat in OP and the RMB10.4bn interest and investment income.Although PDD is still in an investment stage to enhance platform ecosystem, as well as to improve quality and diversity of supply, the beat in operating profit likely speaks to a better-than-feared impact from incremental sales and marketing spend amid the backdrop of national subsidies. 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) - Results Beat on Better-Than-Expected Savings from Sales and Marketing Spend

<ul><li>PDD Holdings (PDD) announced (27 May) 1Q25 results: revenue was up 10.2% YoY (4Q24: 24.4%) to RMB95.7bn, 6% shy of Bloomberg consensus estimates.</li><li>This shortfall was mainly due to a 12% miss on transaction services fees, despite partly offset by the 2% beat in online marketing services and others revenue, which we attribute to the further step-up in merchant support, and is likely to sustain, in our view.</li><li>Non-GAAP NP decreased by 45% YoY to RMB16.9bn, significantly missing consensus by 39%. </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 (27 May) 1Q25 results: revenue was up 10.2% YoY (4Q24: 24.4%) to RMB95.7bn, 6% shy of Bloomberg consensus estimates.This shortfall was mainly due to a 12% miss on transaction services fees, despite partly offset by the 2% beat in online marketing services and others revenue, which we attribute to the further step-up in merchant support, and is likely to sustain, in our view.Non-GAAP NP decreased by 45% YoY to RMB16.9bn, significantly missing consensus by 39%. 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) - Investment to Enhance Platform Ecosystem...

<ul><li>PDD Holdings (PDD) announced (20 Mar) 4Q24 results: revenue was up 24% YoY (3Q24: 44%) to RMB110.6bn, 5% shy of Bloomberg consensus estimates, mainly owing to the 10% miss on transaction services fees which we attribute to ongoing impact from enhancement of merchant support.</li><li>Non-GAAP net profit increased by 17% YoY to RMB29.9bn, 4% ahead of consensus, which we attribute to non-operating items such as foreign exchange gains and other income.</li><li>We lower our 2025-2026E revenue forecast by 3-5% and non-GAAP net profit by 3-9% to factor in the greater-than-expected impact of PDD’s move to enhance merchant support and platform ecosystem, as well as incremental investment on consumer side to enhance consumer mindshare. </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 (20 Mar) 4Q24 results: revenue was up 24% YoY (3Q24: 44%) to RMB110.6bn, 5% shy of Bloomberg consensus estimates, mainly owing to the 10% miss on transaction services fees which we attribute to ongoing impact from enhancement of merchant support.Non-GAAP net profit increased by 17% YoY to RMB29.9bn, 4% ahead of consensus, which we attribute to non-operating items such as foreign exchange gains and other income.We lower our 2025-2026E revenue forecast by 3-5% and non-GAAP net profit by 3-9% to factor in the greater-than-expected impact of PDD’s move to enhance merchant support and platform ecosystem, as well as incremental investment on consumer side to enhance consumer mindshare. 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.

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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China Internet Sector – 3Q22 preview: near term bumpy recovery

We expect leading technology companies will play vital role in building digital infrastructure and empowering enterprise digital transformation.

CMB International

Cross sector report – Post-Golden Week: More positive on BToC recovery potential; Cautious on BToB

Golden week data missed market’s already low expectation for all three major categories - property sales, domestic tourism spending and auto sales.

CMB International

PDD Holdings (PDD US) - Results Beat on Better-Than-Expected Savings from Sales and Marketing Spend

PDD Holdings (PDD) announced (25 Aug) 2Q25 results: revenue was up 7% YoY (1Q25: 10%) to RMB104.0bn, inline with Bloomberg consensus estimates

CMB International

PDD Holdings (PDD US) - Investment to Enhance Platform Ecosystem...

PDD Holdings (PDD) announced (27 May) 1Q25 results: revenue was up 10.2% YoY (4Q24: 24.4%) to RMB95.7bn, 6% shy of Bloomberg consensus estimates.

CMB International

PDD Holdings (PDD US) - Earnings Beat

PDD Holdings (PDD) announced (20 Mar) 4Q24 results: revenue was up 24% YoY (3Q24: 44%) to RMB110.6bn, 5% shy of Bloomberg consensus estimates

CMB International