ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/27250" target="_blank" data-smartkarma-citation="entities:27250:1">Pinduoduo (PDD US)</a>'s Chairman &amp; CEO states that the counterfeit products debacle has had limited impact on GMV and traffic.</li>
<li>Management's strategy is to grow user base/engagement over monetization, implying profitability is not a priority (yet).</li>
<li>2Q18 Growth momentum on financial metrics (GMV/take rate/active buyers) and top line is very impressive. </li>
<li>We think that investors would value PDD on 2020 P/S multiple, possibly within 5-10x trading band (it trades at 6.9x 2020 P/S).</li>
</ul>



Pinduoduo (PDD US)'s Chairman &amp; CEO states that the counterfeit products debacle has had limited impact on GMV and traffic.
Management's strategy is to grow user base/engagement over monetization, implying profitability is not a priority (yet).
2Q18 Growth momentum on financial metrics (GMV/take rate/active buyers) and top line is very impressive. 
We think that investors would value PDD on 2020 P/S multiple, possibly within 5-10x trading band (it trades at 6.9x 2020 P/S).


Pinduoduo: Key Takeaways from First Conference Call Post IPO

PDD Holdings

Pinduoduo: Key Takeaways from First Conference Call Post IPO