Pinduoduo Inc, (PDD)

[winston]

not vested

Tencent-Backed PDD Is Said to Price $1.6 Billion U.S. IPO at Top

By Crystal Tse and Alex Barinka

Chinese e-commerce company Pinduoduo Inc. has raised $1.6 billion after pricing its U.S. initial public offering at the top end of a marketed range, according to a person with knowledge of the matter.

The Shanghai-based shopping platform backed by Tencent Holdings Ltd. has priced 85.6 million American depositary shares at $19 each, said the person, who asked not to be identified because the details are private.

The shares were marketed at $16 to $19 each, according to a regulatory filing.

Source: Bloomberg

https://www.bloomberg.com/news/articles ... yptr=yahoo

[winston]

not vested

Online discounter Pinduoduo vaults on US debut

Shares in Chinese e-commerce company Pinduoduo, which went public on the New York stock exchange Thursday, soared by 40 percent, to close at US$26.7.

The company raised US$1.6 billion and was valued at US$29.6 billion, according to Forbes and MarketWatch.

Pinduoduo was created less than three years ago, and targets lower income areas of China. It capitalizes on the WeChat app to share with other users on what they are buying and offers many products in bulk.

To date, the site has nearly 200 million daily users, according to Forbes.

Revenue for the past few years have been strong: US$278 million in 2017, and US$220 million in 2018’s first three months.

Colin Huang, 38, founded the company after a stint at Google.

He studied computer science at Hangzhou’s Zhejiang University as well as the University of Wisconsin, Madison.

With his 46.8 percent stake in the company, he’s now worth US$13.8 billion—which makes him the 13th wealthiest in China.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 0727&sid=2

[winston]

not vested

THE GLOBAL E-COMMERCE TREND IS PICKING UP SPEED

Pinduoduo (PDD) is the third-largest e-commerce platform in China. Like other e-commerce companies, Pinduoduo makes its money by collecting a small fee on every sale made on its platform.

And these fees add up... In the first quarter, more than $160 billion in sales took place through Pinduoduo's platform, an increase of 108% from the same quarter a year ago. This drove revenue growth of 44% to more than $923 million for the quarter.

As you can see in today's chart, PDD shares are soaring. The stock has more than tripled over the past year, and it recently hit a fresh all-time high. As the e-commerce trend continues to gain momentum, Pinduoduo should continue to benefit...

Source: Daily Wealth

[investar]

Everybody wants a piece of this...

New ATH today at 86$ and a 100B MC

[winston]

not vested

Pinduoduo hits record as CEO named 2nd richest

by Stella Zhai

Colin Huang Zheng, founder and CEO of Chinese e-commerce giant Pinduoduo, has leapfrogged founder and former chairman of Alibaba (9988) Jack Ma Yun, to become the second richest person in China, according to the Forbes Real-Time Billionaire Index.

The American depositary receipts of Pinduoduo jumped by 6.3 percent to a record US$87.58 (HK$678.77) last Friday after its annual June 18 shopping promotion, totaling a market capitalization of US$104.89 billion and exceeding that of JD.com's (9618) Nasdaq-traded stocks.

The company's stock has surged by over 95 percent from a previous low of US$44.8 in May.

Huang, who owns 43.3 percent of Pinduoduo, saw his net worth increase to US$45.4 billion as of yesterday.

He ranks next to Pony Ma Huateng, Tencent (0700) chairman and chief executive who has a net worth of US$52.4 billion.

Jack Ma, who stepped down from the operation of Alibaba last fall to focus on philanthropy, saw his net worth fall to US$43.9 billion from US$45 billion, according to data from Forbes.

The company earlier said its order volume during the "6.18" campaign surged by 1.19 times but didn't release the total sales value. Alibaba handled a total of 698.2 billion yuan (HK$764.74 billion) for its Tmall while JD recorded 269.2 billion yuan of sales on that day, according to the companies.

Mainland media had earlier reported that Pinduoduo, which is known for its deep discounts, was planing a secondary listing in Hong Kong and had hired China International Capital Corporation (3908) to arrange the deal, aiming to submit an initial public offering application by the month-end. The company, however, denied the report was true.

Founded in 2015, the platform has overtaken rival JD as China's second-largest online retailer after Alibaba. Its revenue expanded by 44 percent from a year ago to 6.54 billion yuan during the first quarter this year, but net losses widened to 4.12 billion yuan from 1.88 billion yuan a year earlier.

Huang previously founded online game company Xinyoudi and online e-commerce platform Ouku.com, after interning at Microsoft in both Beijing and Seattle, before working at Google in the United States in 2004, according to Forbes.

Source: The Standard

https://www.thestandard.com.hk/section- ... nd-richest

[winston]

not vested

Pinduoduo

Pinduoduo, one of China’s leading e-commerce companies, is especially popular in China’s less developed areas because many items found on the company’s social group buying app can be really cheap.

Given limited budgets, Pinduoduo’s cheap prices make it very competitive.

Pinduoduo benefits from the development of China’s less developed areas in that the company could presumably find it easier to sell more expensive items over time as incomes in those regions rise.

As a result, Pinduoduo’s gross merchandise value (GMV) could increase. With more GMV comes more revenue-generating opportunities.

Although it will benefit from the trend, Pinduoduo still needs to execute in terms of producing the profits that the market expects and holding onto market share as competition rises.

Some analysts think more “automatic” companies like Alibaba could be better bets.

Source: Motley Fool

[winston]

not vested

Pinduoduo price target raised on positioning

Jul. 14, 2020

By: Brandy Betz

Seeing Pinduoduo (NASDAQ:PDD) as "well positioned" in the current macro environment, KeyBanc raises the price target from $84 to $100.

The firm also notes PDD's "traction in agriculture e-commerce," which further supports the company's long-term potential.

With shares up 133% YTD, KeyBanc does see the near-term risk profile as less attractive.

The company has a Bullish average Wall St. Analysts rating and $75.72 average price target.

Source: Seeking Alpha

https://seekingalpha.com/news/3590954-p ... m=referral

[winston]

not vested

July 7, 2020

4 Tough Tasks for Pinduoduo’s New CEO

China’s third-largest e-commerce company has a new CEO -- but can he address its four most pressing challenges?

by Leo Sun

1. Narrowing its losses

Pinduoduo's revenue rose 130% to 30.14 billion RMB ($4.33 billion) last year, but its adjusted net loss widened from 3.46 billion RMB ($492 million) to 4.27 billion RMB ($613 million).

2. Countering Alibaba and JD in lower-tier cities

3. Challenging Alibaba's exclusive deals

4. Burning less cash
Pinduoduo's widening losses caused its cash and equivalents to plunge 75% annually to 5.53 billion yuan ($780.5 million) last quarter. It was still sitting on 37.05 billion yuan ($5.2 billion) in short-term investments, but Chen needs to tighten up the company's spending and burn less cash.

Source: Motley Fool

https://www.fool.com/investing/2020/07/ ... lrf0000001

[winston]

not vested

“Pin” more, save more

Leveraging its team-purchase model, various promotion methods, and agricultural product focus, PDD is quickly gaining market share in the e-commerce market.

We expect PDD to further penetrate top-tier markets, while enjoying the benefits of the formation of consumption habits in lower-tier markets.

The digitalization of the agricultural supply chain offers large growth potential for PDD.

We initiate coverage with an Add rating and a DCF-based TP of US$180.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A29543BAB8

[winston]

not vested

Pinduoduo Inc
Robust topline growth but margin under pressure

PDD reported FY20 revenue of Rmb59.5bn, up 97% yoy, and above our expectation,
but dragged down by costs related to new trial 1P business and Duo Duo Grocery, its
full-year gross margin dropped by 11% pts to 67.6%, below our expectation.

Because of a high AAU increase and the launch of Duo Duo Grocery, PDD’s FY20
purchase frequency increased by 44% yoy and the ticket size dropped by 15% yoy.

In FY21F, PDD will focus on Duo Duo Grocery with a substantial investment in
people, technology and logistics infrastructure, leading to short-term cost pressure.

Reiterate Add with a lower DCF-based TP of US$172.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 134CB2FCD3