New Street Research - PINDUODUO PDD US (PDD) New Street: PDD 4Q21 Results - One-Off Rebates Drive Margins; Investments in Agriculture to Continue

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New Street Research

Jin Yoon

New Street: PDD 4Q21 Results - One-Off Rebates Drive Margins; Investments in Agriculture to Continue

What's new: Pinduoduo Inc. 4Q21 top-line results were below consensus and our expectations driven by continued deceleration in OMS coupled with meaningful YoY decline in merchandise sales. While margins exceeded expectations, one-off rebate from service provider is not expected to reoccur in 2022 and that investments in agriculture-related initiatives and R&D could continue in 2022. We lower our PT from USD100 to USD60 as top line could continue to face pressure amid weak macro environment and increased competition. Our new PT of USD60 implies a FY22 EV/revenue of 3.4x.

Analysts:
Jin Yoon

22/03/2022 1 EN

Underlying

PINDUODUO PDD US

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Analysts

Jin Yoon

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New Street: PDD 4Q21 Results - One-Off Rebates Drive Margins; Investments in Agriculture to Continue

PDD: 1Q25 Flash - Meaningful Deceleration in Revs; Margins Below Expectations

PDD Holdings (PDD US): 4Q24: Earnings largely in line; revenue miss on Rmb10b fee reduction programme.

Greater China Daily: Friday, March 21, 2025

SATS, Carr, and the Art of the No Deal…Yet

Supreme Court Upholds USF Framework but Reform Still Ahead

CMCSA quick hit: Comcast continues to make the right pricing moves

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