Greater China Equity Long/Short Analyst

Eric Chen

Equity Bottom-Up

<ul>
<li>The market has lingering concern about substantial slowdown in PDD’s growth and has been pricing in the outlook for most part of the year.</li>
<li>2Q results did signal imminent growth deceleration, and management’s blunt yet honest comments about the pressure on margin further stoke fears.</li>
<li>We regard 1/3 market cap wipe-out after the results as over-reaction. While risks have been reflected to large extent, we do not expect a meaningful re-rating until 2H25.</li>
</ul>


The market has lingering concern about substantial slowdown in PDD’s growth and has been pricing in the outlook for most part of the year.
2Q results did signal imminent growth deceleration, and management’s blunt yet honest comments about the pressure on margin further stoke fears.
We regard 1/3 market cap wipe-out after the results as over-reaction. While risks have been reflected to large extent, we do not expect a meaningful re-rating until 2H25.


Pinduoduo (PDD US): Oversold on Concerns About Slowdown

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a>, recently filed its PHIP as it aims to raise up to US$3bn in its H-share listing, as per media reports.</li>
<li>Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.</li>
<li>We have covered the company and deal background in our previous notes. In this note, we talk about the updates from its 1H24 results.</li>
</ul>



Midea Group Co Ltd A (000333 CH), recently filed its PHIP as it aims to raise up to US$3bn in its H-share listing, as per media reports.
Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
We have covered the company and deal background in our previous notes. In this note, we talk about the updates from its 1H24 results.


Midea A/H Listing - 1H24 Updates - Strong Growth, Margins Uptick Continues

Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<ul>
<li>Welcome to Consumer Tales &amp; Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.</li>
<li>
<a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>  reported robust revenue and profit growth amidst  broader struggles in the F&amp;B industry  raises questions on industry dynamics and momentum sustainability.</li>
<li>
<a href="https://www.smartkarma.com/entities/health-and-happiness-h-h-int" target="_blank" data-smartkarma-citation="entities:20582:1" rel="noopener">Health And Happiness (1112 HK)</a>  faced another quarter of declining revenue and profits, but reported a significant rise in cash generated from operations thanks to improved inventory turnover.</li>
</ul>


Welcome to Consumer Tales &amp; Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.

Meituan (3690 HK)  reported robust revenue and profit growth amidst  broader struggles in the F&amp;B industry  raises questions on industry dynamics and momentum sustainability.

Health And Happiness (1112 HK)  faced another quarter of declining revenue and profits, but reported a significant rise in cash generated from operations thanks to improved inventory turnover.


Weekly Consumer Tales: Meituan's Margin Gain, H&H's Pain, PDD's Stock Crash

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>Draconian 'de minimis' reform proposal in the US has bipartisan support</li>
<li>In Q224 results, rampant signs of a Chinese X-border retail slowdown</li>
<li>Other news: plastics laws, new Amazon threat, SHEIN sustainability initiatives</li>
</ul>


Draconian 'de minimis' reform proposal in the US has bipartisan support
In Q224 results, rampant signs of a Chinese X-border retail slowdown
Other news: plastics laws, new Amazon threat, SHEIN sustainability initiatives


SHEIN & Temu Updates: 'De Minimis' Threat | Chinese X-Border Slowdown | Plastics! | AMZN Project?

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>PDD US:PDD valuation cheaper than slower growing e-commerce peers. (/)</li>
<li>SHEIN: SHEIN launches semi- consignment model in the EU.  (/)</li>
<li>BABA US: Taobao launches “Grass-Planting Plan” to drive off-site traffic to Taobao (+) </li>
</ul>


PDD US:PDD valuation cheaper than slower growing e-commerce peers. (/)
SHEIN: SHEIN launches semi- consignment model in the EU.  (/)
BABA US: Taobao launches “Grass-Planting Plan” to drive off-site traffic to Taobao (+) 


[Blue Lotus Daily-TMT Update]:PDD US/SHEIN/SE US/BABA US/JD US/700 HK/NTES US

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 US): Oversold on Concerns About Slowdown

2Q results did signal imminent slowdown in growth which the market has been pricing in for most part of the year. The stock was oversold, yet we...

Eric Chen

Midea A/H Listing - 1H24 Updates - Strong Growth, Margins Uptick Continues

Midea Group Co Ltd A (000333 CH), recently filed its PHIP as it aims to raise up to US$3bn in its H-share listing, as per media reports. In this...

Sumeet Singh

Weekly Consumer Tales: Meituan's Margin Gain, H&H's Pain, PDD's Stock Crash

Weekly include a brief analysis of earnings released by Meituan and Health and Happiness, last week. Also PDD's stock crash following Management's...

Devi Subhakesan

SHEIN & Temu Updates: 'De Minimis' Threat | Chinese X-Border Slowdown | Plastics! | AMZN Project?

In this roundup of news related to China's direct-to-consumer retail platforms we cover: a new de minimis reform bill in the US, Q2's X-border...

Tracking Traffic

[Blue Lotus Daily-TMT Update]:PDD US/SHEIN/SE US/BABA US/JD US/700 HK/NTES US

PDD US valuation cheaper than e-commerce peers, SHEIN launches consignment model in EU, Taobao's "Grass-Planting Plan" drives off-site traffic.

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pinduoduo (PDD US): Oversold on Concerns About Slowdown

​2Q results did signal imminent slowdown in growth which the market has been pricing in for most part of the year. The stock was oversold, yet we...

Eric Chen

Midea A/H Listing - 1H24 Updates - Strong Growth, Margins Uptick Continues

Midea Group Co Ltd A (000333 CH), recently filed its PHIP as it aims to raise up to US$3bn in its H-share listing, as per media reports. In this...

Sumeet Singh

Weekly Consumer Tales: Meituan's Margin Gain, H&H's Pain, PDD's Stock Crash

Weekly include a brief analysis of earnings released by Meituan and Health and Happiness, last week. Also PDD's stock crash following Management's...

Devi Subhakesan

SHEIN & Temu Updates: 'De Minimis' Threat | Chinese X-Border Slowdown | Plastics! | AMZN Project?

In this roundup of news related to China's direct-to-consumer retail platforms we cover: a new de minimis reform bill in the US, Q2's X-border...

Tracking Traffic

[Blue Lotus Daily-TMT Update]:PDD US/SHEIN/SE US/BABA US/JD US/700 HK/NTES US

​PDD US valuation cheaper than e-commerce peers, SHEIN launches consignment model in EU, Taobao's "Grass-Planting Plan" drives off-site traffic.

Blue Lotus Research Institute

2Q results did signal imminent slowdown in growth which the market has been pricing in for most part of the year. The stock was oversold, yet we...

PDD US valuation cheaper than e-commerce peers, SHEIN launches consignment model in EU, Taobao's "Grass-Planting Plan" drives off-site traffic.