PDD Holdings Inc - ADR

PDD Holdings Inc - ADR

PDD

Market Cap$172.43B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
PDD Holdings Inc - ADRPDD Holdings Inc - ADR11.5-39%1.9-

Earnings Call Q3 2024

November 21, 2024 - AI Summary

Strong Revenue Growth: PDD Holdings reported total revenues of RMB 99.4 billion in Q3 2024, representing a 44% year-over-year increase, primarily driven by a significant surge in transaction services (up 72% YoY). However, there was a noted moderation in revenue growth compared to previous quarters, indicating heightened competition and external challenges.
Investment in Merchant Ecosystem: The company launched a $10 billion fee reduction program aimed at supporting high-quality merchants, which includes service fee rebates and enhanced logistics support to lower operational costs. This initiative is expected to sustain long-term growth, with positive feedback already received from over ten million merchants, particularly in agriculture and national goods sectors.
Profitability Pressure: Despite robust revenue growth, PDD's profitability appears to be under strain. Operating profit for the quarter was RMB 24.3 billion, marking only a modest increase compared to Q3 2023. The management indicated that profitability may gradually trend lower as the company prioritizes investments for a sustainable platform ecosystem, which could affect future earnings.

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$171.00

Target Price by Analysts

33.1% upsidePDD Holdings Target Price DetailsTarget Price
$38.68

Current Fair Value

69.9% downside

Overvalued by 69.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$172.43 Billion
Enterprise Value$120.32 Billion
Dividend Yield$0 (0%)
Earnings per Share$10.29
Beta0.66
Outstanding Shares5,543,633,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio11.54
PEG18.99
Price to Sales1.92
Price to Book Ratio2.57
Enterprise Value to Revenue0.32
Enterprise Value to EBIT1.1
Enterprise Value to Net Income1
Total Debt to Enterprise0.11
Debt to Equity0.05

Revenue Sources

No data

Insider Trades

ESG Score

No data

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