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.

Equity Bottom-Up

<ul><li>PDD Holdings, Inc. presented its financial results for the fourth quarter and full fiscal year of 2024, showcasing a strategy focused on high-quality development and ecosystem advancement.</li><li>The company reported stable financial performance in the last quarter, closing with a revenue increase to RMB 110.6 billion, a 24% year-over year gain.</li><li>For the entire year, revenues climbed 59% to a total of RMB 393.8 billion, marking a moderation from previous growth rates.</li></ul>

PDD Holdings, Inc. presented its financial results for the fourth quarter and full fiscal year of 2024, showcasing a strategy focused on high-quality development and ecosystem advancement.The company reported stable financial performance in the last quarter, closing with a revenue increase to RMB 110.6 billion, a 24% year-over year gain.For the entire year, revenues climbed 59% to a total of RMB 393.8 billion, marking a moderation from previous growth rates.

Is PDD the Silent Giant That Could Crush Alibaba? Here’s What the Data Says!

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

<ul>
<li>PDD reported C4Q24 top line 1.1%/(6.1%) vs. our est./cons. and non-GAAP operating income (5.4%)/(5.6%) vs. est./cons., </li>
<li>PDD rose to prominence by optimizing the value chain built/inherited by Alibaba/eBay in China and Amazon/eBay in US. </li>
<li>As these two “bonuses” coming to an end, PDD must build its own. While growth shall normalize, China low tier cities and global developing markets shall sustain its growth. </li>
</ul>


PDD reported C4Q24 top line 1.1%/(6.1%) vs. our est./cons. and non-GAAP operating income (5.4%)/(5.6%) vs. est./cons., 
PDD rose to prominence by optimizing the value chain built/inherited by Alibaba/eBay in China and Amazon/eBay in US. 
As these two “bonuses” coming to an end, PDD must build its own. While growth shall normalize, China low tier cities and global developing markets shall sustain its growth. 


[PDD Holdings Inc. (PDD US, BUY, TP US$146) Review]: A New PDD Focusing on Low Tier and Non-US

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.

<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.

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>PDD’s total revenue grew by 24% YoY in 4Q24, with advertising up by 17% YoY and commission up by 33% YoY.</li>
<li>The gross margin declined YoY, but we still believe PDD has advantage in the low price market.</li>
<li>We conclude an upside of 71% and a price target of US$215 for the next twelve months.</li>
</ul>


PDD’s total revenue grew by 24% YoY in 4Q24, with advertising up by 17% YoY and commission up by 33% YoY.
The gross margin declined YoY, but we still believe PDD has advantage in the low price market.
We conclude an upside of 71% and a price target of US$215 for the next twelve months.


Pinduoduo (PDD): 4Q24, Not Slowdown, Still Advantage in Low Price Market, 70% Upside

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>Temu, the Chinese cross-border e-commerce platform owned by PDD Holdings Inc. has suffered its first major setback since launching in 2022 after Vietnam banned its operations citing regulatory non-compliance only two months after it entered the market.</li><li>Temu was ordered by the Ministry of Industry and Trade to stop using the Vietnamese language on its website and app, to notify customers that its e-commerce registration was under review, and to halt all marketing activities in the country, according to a report by Vietnam News Agency on Dec.</li><li>The suspension is Temu’s first since expanding into more than 80 countries around the world.</li></ul>

Temu, the Chinese cross-border e-commerce platform owned by PDD Holdings Inc. has suffered its first major setback since launching in 2022 after Vietnam banned its operations citing regulatory non-compliance only two months after it entered the market.Temu was ordered by the Ministry of Industry and Trade to stop using the Vietnamese language on its website and app, to notify customers that its e-commerce registration was under review, and to halt all marketing activities in the country, according to a report by Vietnam News Agency on Dec.The suspension is Temu’s first since expanding into more than 80 countries around the world.

Temu Suffers First Big Setback as Vietnam Suspends Its Operations 

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)

Is PDD the Silent Giant That Could Crush Alibaba? Here’s What the Data Says!

PDD Holdings, Inc. presented its financial results for the fourth quarter and full fiscal year of 2024, showcasing a strategy focused on...

Baptista Research

[PDD Holdings Inc. (PDD US, BUY, TP US$146) Review]: A New PDD Focusing on Low Tier and Non-US

PDD's top line and operating income fall short of expectations as it transitions from optimizing existing value chains to building

Blue Lotus Research Institute