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.

Equity Bottom-Up

<ul><li>PDD Holdings (PDD) announced (21 Nov) 3Q24 results: revenue was up 44.3% YoY (3Q23: 93.9%; 2Q24: 85.7%) to RMB99.4bn, 3% shy of Bloomberg consensus estimates, mainly owing to the 6% miss on transaction services fees which we attribute to the impact from enhancement of merchant support.</li><li>NonGAAP net profit increased by 61.3% YoY to RMB27.5bn, 6% short of consensus, due to the miss in revenue generation.</li><li>We lower our 2024-2026E revenue forecast by 4-9% and non-GAAP net profit by 9-16% to factor in the greater-than-expected impact of PDD’s move to enhance merchant support, as well as PDD’s effort to provide home appliances products at prices similar to its peers’ level against the backdrop of nationwide home appliance trade-in program. </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 (21 Nov) 3Q24 results: revenue was up 44.3% YoY (3Q23: 93.9%; 2Q24: 85.7%) to RMB99.4bn, 3% shy of Bloomberg consensus estimates, mainly owing to the 6% miss on transaction services fees which we attribute to the impact from enhancement of merchant support.NonGAAP net profit increased by 61.3% YoY to RMB27.5bn, 6% short of consensus, due to the miss in revenue generation.We lower our 2024-2026E revenue forecast by 4-9% and non-GAAP net profit by 9-16% to factor in the greater-than-expected impact of PDD’s move to enhance merchant support, as well as PDD’s effort to provide home appliances products at prices similar to its peers’ level against the backdrop of nationwide home appliance trade-in program. 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) - Impact from Enhancement of Merchant Support Stared to Emerge

<ul><li>PDD Holdings (PDD) announced (26 Aug) 2Q24 results: revenue was up 86% YoY (2Q23: 66%; 1Q24: 131%) to RMB97.1bn, 3% shy of Bloomberg consensus estimates.</li><li>Both online marketing services and others and transaction services fees were 3% short of consensus, which in our view can be attributed to intensified industry competition, but should be partly anticipated.</li><li>Non-GAAP net profit increased by 126% YoY to RMB34.4bn, 14% ahead of consensus.</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 (26 Aug) 2Q24 results: revenue was up 86% YoY (2Q23: 66%; 1Q24: 131%) to RMB97.1bn, 3% shy of Bloomberg consensus estimates.Both online marketing services and others and transaction services fees were 3% short of consensus, which in our view can be attributed to intensified industry competition, but should be partly anticipated.Non-GAAP net profit increased by 126% YoY to RMB34.4bn, 14% ahead of consensus.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.

<ul><li>PDD Holdings (PDD) announced (22 May) 1Q24 results: revenue was up 131% YoY (1Q23: 58%; 4Q23: 123%) to RMB86.8bn, 13% ahead of Bloomberg consensus, which we attribute to a stronger-than-expected increase in monetization of domestic business, and more rapid-than-expected international expansion.</li><li>Non-GAAP net profit increased by 202% YoY to RMB30.6bn, ahead of consensus at RMB15.5bn, which we attribute to better-than-expected domestic business profit generation driven by monetization expansion aided by the launch of new advertising products since 4Q23.</li><li>The results echoed our view that PDD still has room to drive a further increase in monetization rate, and we see its overseas expansion on track to support PDD’s long-term revenue and earnings growth. </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 (22 May) 1Q24 results: revenue was up 131% YoY (1Q23: 58%; 4Q23: 123%) to RMB86.8bn, 13% ahead of Bloomberg consensus, which we attribute to a stronger-than-expected increase in monetization of domestic business, and more rapid-than-expected international expansion.Non-GAAP net profit increased by 202% YoY to RMB30.6bn, ahead of consensus at RMB15.5bn, which we attribute to better-than-expected domestic business profit generation driven by monetization expansion aided by the launch of new advertising products since 4Q23.The results echoed our view that PDD still has room to drive a further increase in monetization rate, and we see its overseas expansion on track to support PDD’s long-term revenue and earnings growth. 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) - Increased Monetization Drove a Strong Beat on Results

<ul><li>PDD Holdings (PDD) announced (20 Mar) 4Q23 results: revenue was up 123% YoY (4Q22: 46%; 3Q23: 94%) to RMB88.9bn, 11% ahead of Bloomberg consensus, which we attribute to both stronger-than-expected international expansion, and better-than-expected monetization improvement of domestic business.</li><li>Non-GAAP NP increased by 110% YoY to RMB25.5bn, 52% ahead of consensus, which we attribute to better-than-expected domestic business profit generation, and likely narrower-than-expected loss generated from Temu business, aided by more rapid-than-expected business scale expansion and better-than-expected optimization in consumer subsidy.</li><li>Although industry competition may become tougher in 2024, PDD still has room to drive a further increase in monetization rate, aided by the increase in commission rate of its “Ten Billion Subsidy” program, and the launch of new advertising products.</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 (20 Mar) 4Q23 results: revenue was up 123% YoY (4Q22: 46%; 3Q23: 94%) to RMB88.9bn, 11% ahead of Bloomberg consensus, which we attribute to both stronger-than-expected international expansion, and better-than-expected monetization improvement of domestic business.Non-GAAP NP increased by 110% YoY to RMB25.5bn, 52% ahead of consensus, which we attribute to better-than-expected domestic business profit generation, and likely narrower-than-expected loss generated from Temu business, aided by more rapid-than-expected business scale expansion and better-than-expected optimization in consumer subsidy.Although industry competition may become tougher in 2024, PDD still has room to drive a further increase in monetization rate, aided by the increase in commission rate of its “Ten Billion Subsidy” program, and the launch of new advertising products.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) - Still Has Potential to Improve Monetization

Thematic (Sector/Industry)

<ul><li>We update our sector investment views for the next six months post earnings as follows: 1) Companies with solid fundamentals and high revenue and profit growth visibility; 2) sustained profitability and willingness to lift shareholder returns; and 3) a sizeable TAM for new initiatives and business explorations likely to generate a decent ROIC.</li><li>We believe the market will continue to allocate to such names and value them fairly.</li><li>Taking into account 2Q results and recent stock performances, we find our previous view has been testified: better-than-expected earnings are not enough to drive a share rally, but better-than-expected 3Q/full-year outlook and enhanced shareholder return measures could provide key support. </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.

We update our sector investment views for the next six months post earnings as follows: 1) Companies with solid fundamentals and high revenue and profit growth visibility; 2) sustained profitability and willingness to lift shareholder returns; and 3) a sizeable TAM for new initiatives and business explorations likely to generate a decent ROIC.We believe the market will continue to allocate to such names and value them fairly.Taking into account 2Q results and recent stock performances, we find our previous view has been testified: better-than-expected earnings are not enough to drive a share rally, but better-than-expected 3Q/full-year outlook and enhanced shareholder return measures could provide key support. 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.

Internet - 2Q24 Recap & Stock-Picking Ideas: Seeking Certainty

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)