Greater China Equity Long/Short Analyst

Eric Chen

With a blend of sell-side and buy-side perspectives, Eric has covered and researched hundreds of Greater China equities in TMT and consumer spaces - two sectors woven together by the overarching thesis of technology empowering consumption. 

Eric is highly experienced in fundamental equity long short strategy. He seeks to produce differentiated and original research that combines holistic qualitative framework, unique angles and robust modelling. The process helps gain deep insights into critical value drivers misunderstood by the market, which results in mis-priced stocks and hence long/short opportunities.

Pinduoduo (PDD US): Growth Worries Overdone

Asia Ex-Japan Funds:  Extremes in Positioning & Momentum

Asia Ex-Japan Q1 Performance & Attribution:  Strong Start for Active Managers

Pinduoduo (PDD US): Another Strong Beat Around the Corner

PDD Holdings (PDD US) – International Expansion Drove a Strong Beat for 3Q Results

Equity Bottom-Up

<ul>
<li>We see further upside to our previous above-consensus 4Q23 results estimates on low base, enhanced monetization, and faster TEMU expansion.</li>
<li>That said, we believe market focus already shifted to outlook for 2024, in particular an imminent slowdown in 1Q24 and renewed concern around US curb on TEMU.</li>
<li>30% share price correction is pricing in the above scenario and valuation should gradually improve as PDD delivers back-loaded bottom line growth in 2024.</li>
</ul>


We see further upside to our previous above-consensus 4Q23 results estimates on low base, enhanced monetization, and faster TEMU expansion.
That said, we believe market focus already shifted to outlook for 2024, in particular an imminent slowdown in 1Q24 and renewed concern around US curb on TEMU.
30% share price correction is pricing in the above scenario and valuation should gradually improve as PDD delivers back-loaded bottom line growth in 2024.


Pinduoduo (PDD US): Pricing in an Imminent Slowdown