PDD: Temu Growth Driving Better 2Q24E Despite Being Impacted By Duty Free Import Issue
We are positive about PDD’s performance in 2Q24 driven by Temu’s high growth. TEMU’s contribution continues to be significant, as it not only contributes to topline growth but also to the margins. We estimate TEMU’s GMV to grow 10.7% Q/Q in 2Q24, vs. 18.5% Q/Q in 1Q24 due to the tighter clearance control from the US Customs and Border Protection. As a result of the tighter control, more than 10 customs clearance companies were shut down due to their China business, which impacted the speed of TEMU’s clearance.
T.H. Capital is an independent research and investment advisory firm specializing in China. We offers real-time, on-the-ground, bottom-up research across a wide spectrum from macro and industry analysis to company specific projects; from China ADRs to international names that have meaningful exposure to China market. We deliver relevant, comprehensive and data driven research adding immense value to clients.
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