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.

Equity Bottom-Up

<ul>
<li>PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.</li>
<li>In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.</li>
<li>We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.</li>
</ul>


PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.
In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.
We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.


Pinduoduo (PDD): 3Q25, Growth Stops Declining, Op Cashflow Rises Again After a Year

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 (18 Nov) 3Q25 results: revenue was up 9.0% YoY (2Q25: 7.1%) to RMB108.3bn, 1% better than Bloomberg consensus estimates.</li><li>This was driven by a 7% beat in transaction services fees, but offset by the 4% miss in online marketing services and others that we attributed to the impact from RMB100bn support program to enhance platform ecosystem.</li><li>During the period, operating profit/ non-GAAP NP increased by 3.0/14.3% YoY to RMB25.0bn/31.4bn and was 10/25% better than consensus, driven by more optimized than expected operating expense and RMB8.6bn interest and investment income. </li></ul>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) announced (18 Nov) 3Q25 results: revenue was up 9.0% YoY (2Q25: 7.1%) to RMB108.3bn, 1% better than Bloomberg consensus estimates.This was driven by a 7% beat in transaction services fees, but offset by the 4% miss in online marketing services and others that we attributed to the impact from RMB100bn support program to enhance platform ecosystem.During the period, operating profit/ non-GAAP NP increased by 3.0/14.3% YoY to RMB25.0bn/31.4bn and was 10/25% better than consensus, driven by more optimized than expected operating expense and RMB8.6bn interest and investment income. 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) - 3Q25 Results Beat; Earnings Swung to Positive Growth

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.

<ul><li>PDD Holdings, Inc.'s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.</li><li>The company's revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.</li><li>However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company's substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.</li></ul>

PDD Holdings, Inc.'s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.The company's revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company's substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.

PDD Holdings’ Global Expansion Efforts Paying Off? How It Plans to Win the Supply Chain Race!

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>Pinduoduo Holdings Inc. on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition at home and new tariff challenges abroad for its overseas arm Temu.</li><li>The Nasdaq-listed company posted second-quarter revenue of 103.99 billion yuan ($14.5billion), just above market expectations and up 7% from a year earlier. That marked the fifth straight quarter of deceleration and the slowest pace since mid-2022.</li><li>Pinduoduo’s meteoric rise since launching Temu in September 2022 peaked with a 131% revenue surge in the first quarter of 2024. Growth has slowed each quarter since, falling to 86% in the second quarter of 2024, 44% in the third, 24% in the fourth, and only 10% in the first quarter of 2025.</li></ul>

Pinduoduo Holdings Inc. on Monday reported its slowest revenue growth in three years, as the Chinese e-commerce giant ran into stiffer competition at home and new tariff challenges abroad for its overseas arm Temu.The Nasdaq-listed company posted second-quarter revenue of 103.99 billion yuan ($14.5billion), just above market expectations and up 7% from a year earlier. That marked the fifth straight quarter of deceleration and the slowest pace since mid-2022.Pinduoduo’s meteoric rise since launching Temu in September 2022 peaked with a 131% revenue surge in the first quarter of 2024. Growth has slowed each quarter since, falling to 86% in the second quarter of 2024, 44% in the third, 24% in the fourth, and only 10% in the first quarter of 2025.

Pinduoduo’s Growth Slows as Competition, Tariffs Hit Temu Expansion 

<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>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) 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

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): 3Q25, Growth Stops Declining, Op Cashflow Rises Again After a Year

PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25. In 3Q25, operating cash flows stopped decreasing after a year and grew...

Ming Lu