China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>PDD reported C4Q24 top line 1.1%/(6.1%) vs. our est./cons. and non-GAAP operating income (5.4%)/(5.6%) vs. est./cons., </li>
<li>PDD rose to prominence by optimizing the value chain built/inherited by Alibaba/eBay in China and Amazon/eBay in US. </li>
<li>As these two “bonuses” coming to an end, PDD must build its own. While growth shall normalize, China low tier cities and global developing markets shall sustain its growth. </li>
</ul>


PDD reported C4Q24 top line 1.1%/(6.1%) vs. our est./cons. and non-GAAP operating income (5.4%)/(5.6%) vs. est./cons., 
PDD rose to prominence by optimizing the value chain built/inherited by Alibaba/eBay in China and Amazon/eBay in US. 
As these two “bonuses” coming to an end, PDD must build its own. While growth shall normalize, China low tier cities and global developing markets shall sustain its growth. 


[PDD Holdings Inc. (PDD US, BUY, TP US$146) Review]: A New PDD Focusing on Low Tier and Non-US