Despite blowout profits, the parent company of Temu gave highly cautious guidance on its earnings report.Shares of Chinese e-commerce disruptor PDD Holdings (PDD 0.67%), formerly known as Pinduoduo and the parent company of Temu, plunged 25.4% in August, according to data from S&P Global Market Intelligence.PDD Holdings reported second quarter earnings in late August. And while current results showed torrid growth and increased profitability, management warned of both a slowdown and declining margins lookin ...

Pinduoduo's stock declined by 30% despite reporting solid growth.It has been a turbulent week for Pinduoduo's (PDD 0.67%) investors. Despite reporting an 86% growth in its top line in the latest-quarter earnings, the leading e-commerce platform saw its stock plunge by more than 30%.Investors were unimpressed by the strong numbers and instead focused on Pinduoduo's warning of slower growth ahead. But is the situation that dire? Let's explore this further. Pinduoduo has been executing at a world-class levelPi ...

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Sept. 06, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises PDD Holdings Inc. f/k/a Pinduoduo Inc. (“PDD” or “the Company”) (NASDAQ: PDD) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Bumble investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to c ...

LOS ANGELES, Sept. 6, 2024 /PRNewswire/ -- The DJS Law Group reminds investors of a class action lawsuit against CAE, Inc. ("PDD Holdings" or "the Company") (NASDAQ: PDD) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.Shareholders who purchased shares of PDD during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaint ...

SAN DIEGO, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired PDD Holdings Inc. (NASDAQ: PDD) securities between April 30, 2021 and June 25, 2024. PDD purports to be “a multinational commerce group that owns and operates a portfolio of businesses.” For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LL ...

RADNOR, Pa., Sept. 5, 2024 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com)  informs investors that a securities class action lawsuit has been filed against PDD Holdings Inc. f/k/a Pinduoduo Inc. ("PDD") (NASDAQ: PDD) on behalf of investors who purchased or otherwise acquired PDD securities between April 30, 2021 and June 25, 2024, inclusive (the "Class Period")  The lead plaintiff deadline is October 15, 2024.CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP:If you suffered PDD lo ...

Investment Rating - The report maintains a "Recommended" rating for Pinduoduo (PDD) with a target market value of approximately $227.3 billion based on a 12X PE for the expected Non-GAAP net profit for 2024 [7][35]. Core Insights - Pinduoduo's revenue for Q2 2024 reached 97.06 billion yuan, representing a year-on-year increase of 86%. The operating profit was 32.56 billion yuan, up 156% year-on-year, while the Non-GAAP net profit attributable to ordinary shareholders was 34.4 billion yuan, reflecting a 125% increase year-on-year [23]. - The report highlights that the growth in online marketing service revenue has slowed due to a slight decrease in GMV growth and the postponement of the 618 shopping festival. However, the transaction service revenue surged by 234% year-on-year, driven by an increase in the proportion of the "Hundred Billion Subsidy" and growth in overseas GMV from TEMU [7][23]. - The company is focusing on high-quality development in response to the competitive landscape in both domestic and international e-commerce markets, emphasizing efficiency in its operations [7][23]. Financial Summary - Total revenue projections for Pinduoduo are 422.57 billion yuan for 2024, 525.62 billion yuan for 2025, and 603.37 billion yuan for 2026, with corresponding year-on-year growth rates of 70.6%, 24.4%, and 14.8% respectively [2][7]. - The net profit attributable to ordinary shareholders is expected to be 103.52 billion yuan in 2024, 137.31 billion yuan in 2025, and 176.78 billion yuan in 2026, with year-on-year growth rates of 72.5%, 32.6%, and 28.7% respectively [2][7]. - The report indicates a projected PE ratio of 9.2 for 2024, 6.9 for 2025, and 5.4 for 2026, suggesting a favorable valuation trend [2][7].

Investment Rating - Target price set at $146.10 with a Buy rating [2] - The target price implies a 52% upside from the current price of $96.11 [23] Core Views - Revenue forecasts for 2024-2026 have been revised downward to RMB 4,124 billion, RMB 5,210 billion, and RMB 6,344 billion, respectively, from previous estimates of RMB 4,582 billion, RMB 6,221 billion, and RMB 7,681 billion [2] - Operating profit forecasts for 2024-2026 have been adjusted to RMB 1,206 billion, RMB 1,508 billion, and RMB 1,863 billion, down from RMB 1,352 billion, RMB 1,856 billion, and RMB 2,334 billion [2] - The company is expected to focus on GMV growth, sacrificing short-term profits to build a long-term platform ecosystem [11] Financial Performance - Q2 2024 revenue reached RMB 970.60 billion, up 86% YoY, but missed market expectations [32] - Online marketing services revenue grew 29% YoY to RMB 491.16 billion, while transaction services revenue surged 234% YoY to RMB 479.44 billion, driven by Temu's growth [32] - Operating profit for Q2 2024 was RMB 325.65 billion, up 156% YoY, with an operating margin of 33.6% [32] - Non-GAAP operating margin reached a historical high of 36.0% in Q2 2024 [32] - Net profit for Q2 2024 was RMB 320.09 billion, up 144% YoY, with a net margin of 33.0% [32] Domestic Business Challenges - Domestic e-commerce market faces challenges due to rational consumption and intensified competition [11] - Online retail sales of physical goods grew 8.8% YoY in H1 2024, while per capita consumption expenditure declined by 3.3 percentage points to 5.0% in Q2 2024 [11] - The company plans to increase investments and is not considering stock buybacks or dividend plans in the near term [11] Overseas Business Progress - Temu's global sales approached $20 billion in H1 2024, with full-year GMV expected to reach $50 billion [21] - The overseas business is nearing breakeven, with losses narrowing sequentially [21] - Logistics and marketing costs dominate the overseas cost structure, but fulfillment costs are expected to decline as the semi-hosted business expands [21] - Growth in the US market will rely more on organic traffic, with advertising efforts focused on non-US markets [21] Valuation and Financial Metrics - The company's market capitalization stands at $133.5 billion, with a 52-week high/low of $164.69/$88.01 [23] - The EV/EBITDA ratio is 12.0, with an enterprise value of RMB 2,235.56 billion [16] - Non-GAAP gross margin is expected to remain stable at around 65.8%-67.1% from 2024 to 2026 [29] - Non-GAAP operating margin is projected to improve to 32.0% in 2024, up from 26.6% in 2023 [29] Key Financial Forecasts - Total revenue is expected to grow from RMB 412.43 billion in 2024 to RMB 634.35 billion in 2026 [12] - Operating profit is forecasted to increase from RMB 120.65 billion in 2024 to RMB 186.30 billion in 2026 [12] - EPS is projected to rise from RMB 87.1 in 2024 to RMB 134.3 in 2026 [2]

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Sept. 03, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises PDD Holdings Inc. f/k/a Pinduoduo Inc. ("PDD" or the "Company") (NASDAQ: PDD) investors of a class action representing investors that bought securities between April 30, 2021, and June 25, 2024, inclusive (the "Class Period"). PDD investors have until October 15, 2024 to file a lead plaintiff motion. Investors are encouraged to contact attorne ...

NEW YORK, Sept. 03, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of PDD Holdings Inc. f/k/a Pinduoduo Inc. (NASDAQ: PDD) between April 30, 2021 and June 25, 2024, both dates inclusive (the “Class Period”), of the important October 15, 2024 lead plaintiff deadline in the securities class action first filed by the Firm. SO WHAT: If you purchased PDD Holdings securities during the Class Period you may be entitled to compensation without ...