New Streeet: PDD 2Q21 Results - Reinvesting All the Profits for the Foreseeable Future
What's new: Pinduoduo Inc. 2Q21 top-line results were below consensus and our expectations partially due to sequential decline in merchandise sales. The company announced a RMB10bn agriculture initiative and that all profits in 2Q and any potential profits in future quarters will be first allocated towards this initiative until a total of RMB10bn commitment is fulfilled. We maintain PT at USD140, which implies a FY22 EV/revenue of 7.0x.Analysts:
Jin Yoon
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