New Street: PDD 2Q22 Results - Significant Top Line Beat; PT to $80
What's new: Pinduoduo Inc. 2Q22 results beat consensus and our expectations. Top line growth was mainly driven by recovery in consumer sentiment since 2H of May coupled with increase in merchant/brand activities during 618 shopping festival. While postponement of certain projects and lower business-related expenses has led to increase in margins in 2Q, spending could start to resume as business activities gradually return to normal. We increase our PT from USD60 and USD80 on top and bottom-line strength as overall demand environment gradually recovers. Our revised PT of USD80 implies a 2.9x FY23 EV/Rev.Analysts:
Jin Yoon
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