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China/Asia TMT, Blue Lotus Research Institute

Shawn Yang

China/Asia TMT

China TMT research

Blue Lotus Research Institute

​​​​​​​​Blue Lotus is a China headquartered research institution covering overseas listed China TMT stocks. 

Equity Bottom-Up

<ul>
<li>PDD once again surprised by reporting revenue/non-GAAP net income 16.5%/68.8% higher vs. cons. We suggest the beat is  due to the moderate competitive landscape in 1Q23 and strong consumer demand</li>
<li>Yet, we don’t expect PDD to be able to surprise again in 2Q23 because of the intensified competitive landscape, and its new ecosystem strategy;</li>
<li>PDD remains a long run BUY as it’s a key beneficiary of the downward trend of Chinese and global consumption. We slightly raise our forecasts for PDD’s 2023 EPS.  </li>
</ul>


PDD once again surprised by reporting revenue/non-GAAP net income 16.5%/68.8% higher vs. cons. We suggest the beat is  due to the moderate competitive landscape in 1Q23 and strong consumer demand
Yet, we don’t expect PDD to be able to surprise again in 2Q23 because of the intensified competitive landscape, and its new ecosystem strategy;
PDD remains a long run BUY as it’s a key beneficiary of the downward trend of Chinese and global consumption. We slightly raise our forecasts for PDD’s 2023 EPS.  


Pinduoduo (PDD US, BUY, TP US$95) Earnings Review: A Long Term Buy Amid Challenges in 2Q23