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Articles from Caixin Global

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Cross Asset Strategy

<ul><li>Biotech / Cover story: Chinese pharma turns to global deals to cure capital crunch</li><li>Obituary /Chinese beverage tycoon Zong Qinghou dies at 79</li><li>Fire /Nanjing e-bike parking lot fire kills 15 after spreading to apartment building</li></ul>

Biotech / Cover story: Chinese pharma turns to global deals to cure capital crunchObituary /Chinese beverage tycoon Zong Qinghou dies at 79Fire /Nanjing e-bike parking lot fire kills 15 after spreading to apartment building

CX Daily: Chinese Pharma Turns to Global Deals to Cure Capital Crunch 

Thematic (Sector/Industry)

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China’s two biggest e-commerce companies reported higher sales from this year’s Double 11 shopping extravaganza, but kept tight-lipped about just how high, as they rolled out discount-heavy strategies to encourage reluctant consumers to spend.
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Alibaba Group Holding Ltd. and JD.com Inc. had offered a slew of discounts to attract shoppers as the recovery in household consumption in the world’s second largest economy <a href="https://www.caixinglobal.com/2023-10-18/chinas-third-quarter-gdp-grows-102117643.html" target="_blank" rel="noopener">slowly gained momentum in recent months</a>.
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Alibaba said that both gross merchandise value (GMV) and order amount on Taobao and Tmall from Oct. 24 to Nov. 11 rose from the same period last year.
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China’s two biggest e-commerce companies reported higher sales from this year’s Double 11 shopping extravaganza, but kept tight-lipped about just how high, as they rolled out discount-heavy strategies to encourage reluctant consumers to spend.


Alibaba Group Holding Ltd. and JD.com Inc. had offered a slew of discounts to attract shoppers as the recovery in household consumption in the world’s second largest economy slowly gained momentum in recent months.


Alibaba said that both gross merchandise value (GMV) and order amount on Taobao and Tmall from Oct. 24 to Nov. 11 rose from the same period last year.



Alibaba, JD.com Report Double 11 Sales Growth   

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>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

E-commerce platforms worldwide, including Chinese-owned fast-fashion rivals Shein and Temu, are embracing a novel business model that offers merchants the advantages of selling their goods overseas at a lower cost and higher convenience.
And mainland-based companies stand to benefit as the platforms come in search of reliable suppliers in China’s manufacturing hubs.
The model, known in China as the “full-service consignment model,” (全托管模式) sees online platforms take care of nearly all aspects of the selling process from setting the price of products and storing them to marketing, processing orders, and delivery.

E-commerce platforms worldwide, including Chinese-owned fast-fashion rivals Shein and Temu, are embracing a novel business model that offers merchants the advantages of selling their goods overseas at a lower cost and higher convenience.
And mainland-based companies stand to benefit as the platforms come in search of reliable suppliers in China’s manufacturing hubs.
The model, known in China as the “full-service consignment model,” (全托管模式) sees online platforms take care of nearly all aspects of the selling process from setting the price of products and storing them to marketing, processing orders, and delivery.

E-Commerce Giants Rush to Roll Out ‘Full-Service’ Business Model

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)

CX Daily: Chinese Pharma Turns to Global Deals to Cure Capital Crunch

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Alibaba, JD.com Report Double 11 Sales Growth

China’s two biggest e-commerce companies reported higher sales from this year’s Double 11 shopping extravaganza, but kept tight-lipped about just...

Caixin Global