Investment Rating - The report maintains a "Buy" rating for Pinduoduo with a target price of $119.82 per ADS [19][24]. Core Insights - Advertising revenue growth has slowed down, with Q2 2024 revenue at 97.1 billion CNY, a year-on-year increase of 86%, which is below market expectations of 100 billion CNY [16]. - The company reported a net profit of 34.4 billion CNY in Q2 2024, exceeding market expectations of 30.1 billion CNY, with a profit margin of 35.5% [16]. - Pinduoduo plans to increase investments in enhancing platform safety and supporting quality merchants to achieve high-quality growth amid intensified external competition [16]. Financial Performance Summary - Q2 2024 revenue: 97.1 billion CNY, up 86% YoY; advertising revenue: 49.1 billion CNY, up 29% YoY; commission revenue: 47.9 billion CNY, up 234% YoY [16]. - Q2 2024 adjusted net profit: 34.4 billion CNY, with a profit margin increase of 6.3 percentage points YoY [16]. - The company’s operating costs increased by 80% YoY, primarily due to fulfillment and payment processing fees [16]. Earnings Forecast and Valuation - Revenue projections for 2024-2026 are adjusted to 406.9 billion CNY, 511.1 billion CNY, and 600.3 billion CNY respectively, with adjusted net profits of 127.8 billion CNY, 154.3 billion CNY, and 194.5 billion CNY [17]. - The valuation approach includes PE valuation for the profitable main site and P/GMV valuation for high-growth segments like Duoduo Grocery and TEMU, leading to a total valuation of approximately 1,664 billion USD [24][25].
拼多多2Q24点评：广告收入增速有所放缓，后续注重商家生态