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 (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><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 (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

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 revenue increased by 66% YoY to RMB52 bn, significantly higher than the market consensus RMB43 bn.</li>
<li>The operating margin declined to 24% in 2Q23 from 28% in 2Q22 due to aggressive expansion outside China.</li>
<li>We believe the stock still has an upside of 47% for year end 2023. Buy.</li>
</ul>


PDD’s revenue increased by 66% YoY to RMB52 bn, significantly higher than the market consensus RMB43 bn.
The operating margin declined to 24% in 2Q23 from 28% in 2Q22 due to aggressive expansion outside China.
We believe the stock still has an upside of 47% for year end 2023. Buy.


Pinduoduo (PDD): 2Q23, Revenue Significantly Higher Than Consensus, Buy

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>We think the tailwinds of China’s consumption downgrade for PDD are overblown, while TEMU will be more of a drag than a support for bottom-line in quarters ahead.</li>
<li>2Q results to be announced next month will finally validate our thesis on the company’s earnings risk which we flagged back in last December.  </li>
<li>The markets have been pricing in a sharp slowdown after a short-lived euphoria around its seemingly strong 1Q results, yet downside surprises could still catch investors off guard. Stay neutral.</li>
</ul>


We think the tailwinds of China’s consumption downgrade for PDD are overblown, while TEMU will be more of a drag than a support for bottom-line in quarters ahead.
2Q results to be announced next month will finally validate our thesis on the company’s earnings risk which we flagged back in last December.  
The markets have been pricing in a sharp slowdown after a short-lived euphoria around its seemingly strong 1Q results, yet downside surprises could still catch investors off guard. Stay neutral.


Pinduoduo (PDD US): Resetting Expectations

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>Several US customs brokers have been suspended under new, tighter rules</li>
<li>The new rules could make 'de minimis' imports slightly more difficult</li>
<li>Whether it lists in London or NYC, additional rule changes could threaten SHEIN</li>
</ul>


Several US customs brokers have been suspended under new, tighter rules
The new rules could make 'de minimis' imports slightly more difficult
Whether it lists in London or NYC, additional rule changes could threaten SHEIN


SHEIN: Several US Customs Broker Suspensions Tied to Tighter 'de Minimis' Rules

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 delivered an all-around beat in the previous quarter and the company saw clear recovery trends.</li><li>Revenue increased in the quarter and contributed to a total of RMB37.6 billion.</li><li>PDD has also launched its electronic shopping season and invested millions of RMB for promoting universal and high-quality access to reading.</li></ul>

PDD delivered an all-around beat in the previous quarter and the company saw clear recovery trends.Revenue increased in the quarter and contributed to a total of RMB37.6 billion.PDD has also launched its electronic shopping season and invested millions of RMB for promoting universal and high-quality access to reading.

PDD Holdings Inc.: 3 Major Factors Responsible For Its Recovery – Key Drivers

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): 2Q23, Revenue Significantly Higher Than Consensus, Buy

Revenue increased by 66% YoY to RMB52 bn, significantly higher than the market consensus RMB43 bn. The op margin declined to 24% in 2Q23 from 28%...

Ming Lu

Pinduoduo (PDD US): Resetting Expectations

The tailwinds of China’s consumption downgrade for PDD are overblown. While markets are pricing in a drastic deceleration of PDD's earnings growth,...

Eric Chen

SHEIN: Several US Customs Broker Suspensions Tied to Tighter 'de Minimis' Rules

US Customs and Border Protection has tightened the rules under which SHEIN and Temu import cheap goods into the US. As a result, six US customs...

Tracking Traffic

PDD Holdings Inc.: 3 Major Factors Responsible For Its Recovery – Key Drivers

PDD delivered an all-around beat in the previous quarter and the company saw clear recovery trends. Revenue increased in the quarter and...

Baptista Research

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