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 (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

<ul><li>PDD Holdings (PDD) announced (28 Nov) 3Q23 results: revenue was up 94% YoY to RMB68.8bn, 26% ahead of both our/Bloomberg consensus estimates, which we mainly attribute to stronger-than-expected international expansion, and incremental commission revenue generation from the “Ten billion subsidy” section.</li><li>Non-GAAP net income increased by 37% YoY to RMB17.0bn, 30% ahead of consensus, which we attribute to a likely narrower-than-expected loss generated from Temu business, aided by a stronger-than-expected scale effect, and likely better-than-expected profit generation from Duoduo Grocery, aided by well-established consumer mindshare.</li><li>The results echoed our view that PDD’s overseas business is ramping up quickly, and is 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 (28 Nov) 3Q23 results: revenue was up 94% YoY to RMB68.8bn, 26% ahead of both our/Bloomberg consensus estimates, which we mainly attribute to stronger-than-expected international expansion, and incremental commission revenue generation from the “Ten billion subsidy” section.Non-GAAP net income increased by 37% YoY to RMB17.0bn, 30% ahead of consensus, which we attribute to a likely narrower-than-expected loss generated from Temu business, aided by a stronger-than-expected scale effect, and likely better-than-expected profit generation from Duoduo Grocery, aided by well-established consumer mindshare.The results echoed our view that PDD’s overseas business is ramping up quickly, and is 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) – International Expansion Drove a Strong Beat for 3Q Results

<ul><li>We remain positive on PDD Holdings’ (PDD) long-term growth prospect, mainly given: 1) domestic business could maintain healthy revenue and earnings growth in 2023, aided by the incorporation of more branded products and high ASP products, as well as the increase in monetization, aided by the increase in percentage of paid traffic volume;</li><li>2) Temu, the overseas e-commerce business operated under the “fully-entrusted” model, leveraging strong domestic supply chain and PDD’s strong execution capability, has seen robust GMV and revenue growth, which is on track to support PDD’s long-term revenue and earnings growth, and will likely propel a further valuation rerating, in our view.</li><li>We lift our DCF-based TP by 21% to US$131.8 (was US$109.0), to factor in potentially stronger-than-expected domestic business monetization expansion, and betterthan-expected development of Temu business. Maintain BUY.</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 remain positive on PDD Holdings’ (PDD) long-term growth prospect, mainly given: 1) domestic business could maintain healthy revenue and earnings growth in 2023, aided by the incorporation of more branded products and high ASP products, as well as the increase in monetization, aided by the increase in percentage of paid traffic volume;2) Temu, the overseas e-commerce business operated under the “fully-entrusted” model, leveraging strong domestic supply chain and PDD’s strong execution capability, has seen robust GMV and revenue growth, which is on track to support PDD’s long-term revenue and earnings growth, and will likely propel a further valuation rerating, in our view.We lift our DCF-based TP by 21% to US$131.8 (was US$109.0), to factor in potentially stronger-than-expected domestic business monetization expansion, and betterthan-expected development of Temu business. Maintain BUY.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) – Rapid Overseas Business Expansion

<ul><li>PDD Holdings (PDD) announced (29 Aug) 2Q23 results: revenue was up 66.3% YoY to RMB52.3bn, 22/21% ahead of our/Bloomberg consensus estimates, which we attributable to robust GMV growth and continuous increase in monetization.</li><li>Non-GAAP net income increased by 42% YoY to RMB15.3bn, 41% ahead of consensus, due to operating leverage, sales and marketing spending geared at generating higher GMV from key consumer wallet-share gain categories.</li><li>The strong beat in results echoed our view that in the ecommerce sector PDD has relatively more proactive room to drive GMV growth through targeting bigger consumer wallet share, and further increasing monetization rate given its relatively better ROI compared with peers. </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 (29 Aug) 2Q23 results: revenue was up 66.3% YoY to RMB52.3bn, 22/21% ahead of our/Bloomberg consensus estimates, which we attributable to robust GMV growth and continuous increase in monetization.Non-GAAP net income increased by 42% YoY to RMB15.3bn, 41% ahead of consensus, due to operating leverage, sales and marketing spending geared at generating higher GMV from key consumer wallet-share gain categories.The strong beat in results echoed our view that in the ecommerce sector PDD has relatively more proactive room to drive GMV growth through targeting bigger consumer wallet share, and further increasing monetization rate given its relatively better ROI compared with peers. 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) – Consumer Wallet Share Gain Strategy Boosted Revenue and Earnings Growth

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)