PDD-拼多多：主站货币化及TEMU减亏继续超预期；预计季度利润300亿元+

Investment Rating - The investment rating for the company is "Buy" with a target price raised to $213.00, indicating a potential upside of 44.8% from the current price of$ 147.09 [3][12]. Core Insights - The company's main platform continues to outperform expectations in monetization and TEMU's losses are narrowing. The first quarter of 2024 saw a revenue increase of 131% year-on-year to 86.8 billion RMB, exceeding market expectations by 22% and 13% respectively. Advertising and commission revenues grew by 56% and 327% [1][2]. - The company is expected to maintain a strong growth trajectory, with projected GMV growth of over 30% for the domestic platform and a 200%+ increase in TEMU's GMV, reaching $50 billion in 2024 [2][6]. - The valuation has been adjusted upwards, with total revenue and profit estimates for 2024 increased by 7% and 24% respectively, forecasting a 91% revenue growth and a 100% profit growth for the year [2][6]. Financial Overview - For the fiscal year ending December 31, 2024, the company is projected to generate revenue of 424.8 billion RMB, a 71.5% increase year-on-year, with net profit expected to reach 127.6 billion RMB, reflecting an 85.4% growth [6][17]. - The company's adjusted net profit margin is anticipated to improve, with adjusted net profit margins projected at 35% for Q1 2024 [7][9]. - The company's market capitalization stands at approximately$ 195.4 billion, with a 52-week high of $151.33 and a low of$ 60.02 [5][17]. Performance Metrics - The company has demonstrated significant operational leverage, with adjusted net profit for Q1 2024 increasing by 202% year-on-year to 30.6 billion RMB, significantly surpassing market expectations [1][7]. - The gross margin for Q1 2024 is reported at 62%, with an adjusted operating profit margin of 33% [7][9]. - The company's PEG ratio for its core e-commerce business is only 0.2, indicating a strong competitive advantage and potential for continued high profit growth [2][6].