Investment Rating - The report maintains a Buy rating for Pinduoduo (PDD US) with a target price of 8.1 billion in Q4 2023, with a monetization rate of 42%, and is expected to reach breakeven in mature markets by 2024 [9][17] - The report forecasts 62% revenue growth and 54% profit growth for Pinduoduo in 2024, driven by TEMU's expansion and improved monetization [10] Financial Performance - Pinduoduo's revenue for 2023 reached RMB 247.6 billion, a 89.7% year-over-year increase, with non-GAAP net profit of RMB 67.9 billion, up 68.9% [11] - The company's gross margin stood at 63% in 2023, with an EBITDA margin of 23.8% and a net margin of 24.2% [6] - Operating cash flow for 2023 was RMB 131.1 billion, a significant increase from RMB 48.5 billion in 2022 [6] Future Outlook - Pinduoduo's domestic GMV and revenue are expected to grow by 20% and 25% respectively in 2024, supported by increased user engagement and advertising monetization [17] - TEMU's GMV is projected to grow by 183% to $46.5 billion in 2024, with a reduced loss rate of 8%, and the platform is expected to achieve overall profitability by 2025 [17] - The company's non-GAAP EPS is forecasted to grow from RMB 46.36 in 2023 to RMB 70.33 in 2024, representing a 51.7% increase [11]
4季度业绩大幅超预期；TEMU成熟地区有望在2024年盈亏平衡