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

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China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>PDD once again surprised by reporting revenue/non-GAAP net income 16.5%/68.8% higher vs. cons. We suggest the beat is  due to the moderate competitive landscape in 1Q23 and strong consumer demand</li>
<li>Yet, we don’t expect PDD to be able to surprise again in 2Q23 because of the intensified competitive landscape, and its new ecosystem strategy;</li>
<li>PDD remains a long run BUY as it’s a key beneficiary of the downward trend of Chinese and global consumption. We slightly raise our forecasts for PDD’s 2023 EPS.  </li>
</ul>


PDD once again surprised by reporting revenue/non-GAAP net income 16.5%/68.8% higher vs. cons. We suggest the beat is  due to the moderate competitive landscape in 1Q23 and strong consumer demand
Yet, we don’t expect PDD to be able to surprise again in 2Q23 because of the intensified competitive landscape, and its new ecosystem strategy;
PDD remains a long run BUY as it’s a key beneficiary of the downward trend of Chinese and global consumption. We slightly raise our forecasts for PDD’s 2023 EPS.  


Pinduoduo (PDD US, BUY, TP US$95) Earnings Review: A Long Term Buy Amid Challenges in 2Q23