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): Another Strong Beat Around the Corner

Pinduoduo (PDD US): Pricing in an Imminent Slowdown

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

Pinduoduo (PDD US): Growth Cadence Matters

Equity Bottom-Up

<ul>
<li>Stock rally on strong revenue growth suggests TEMU will be at center stage of the investment thesis for PDD down the road. </li>
<li>Besides soaring GMV, TEMU achieved blowout performance likely due to much higher-than-expected take-rate and disciplined marketing, resulting in narrower-than-expected losses.</li>
<li>We expect the company's growth will even accelerate in 4Q23 and generate adjusted net profit of US$12 bn for FY24, with a target market cap of US$240 bn (20xPE).</li>
</ul>


Stock rally on strong revenue growth suggests TEMU will be at center stage of the investment thesis for PDD down the road. 
Besides soaring GMV, TEMU achieved blowout performance likely due to much higher-than-expected take-rate and disciplined marketing, resulting in narrower-than-expected losses.
We expect the company's growth will even accelerate in 4Q23 and generate adjusted net profit of US$12 bn for FY24, with a target market cap of US$240 bn (20xPE).


PDD Holdings

Pinduoduo (PDD US): TEMU at Center Stage