Gelonghui May 22| Panduo (PDDwildwildwestmegaways.US) rose 1% to $146.9 before the market. Pinduoduo is about to announce its results before the market. The agency predicts that revenue in the first quarter will be 76.558 billion yuan, a year-on-year increase of 103.41%; U.S. stock earnings will be 9.66 yuan, a year-on-year increase of 74.13%.
In addition, UBS recently issued a report arguing that the market is overly pessimistic about the geopolitical risks faced by Temu, a subsidiary of Pinduoduo, and ignores its insufficient overseas services.wildwildwestmegawaysThe huge potential market aggregate (TAM) provided by low-income consumers. Temu's innovative managed e-commerce model should deliver higher profit margins compared to third-party market models. It is estimated that by 2028E, Temu's operating profit margin on commodity turnover will reach 8%, and the market expectation is 4%, exceeding the 3% profit margin in Pinduo's core market. Therefore, the target price of PIDO will be raised from US$217 to US$248, reiterating the "Buy" rating. UBS pointed out that the catalysts for the re-rating of Pendore include Temu's narrowing of losses; strong revenue growth in the face of a competitive environment; and Temu's expectation to achieve breakeven by the end of 2025.