Under the boost of performance, Pinduoduo's stock price has recently seen consecutive sharp increases. On November 28th, Pinduoduo's stock price rose by 18.08%, and on November 29th, it rose by another 1.96%, with a total increase of over 20% in the two trading days.
Pinduoduo's previously released performance showed that its revenue in the third quarter was 68.84 billion yuan, a year-on-year increase of 93.9%; Achieved a net profit of 15.54 billion yuan under the US GAAP standard, with a net profit margin of 22.6%, and revenue and net profit significantly exceeding expectations.
Pinduoduo stated that this is mainly due to the accelerated recovery of the consumer market and the company's fully implemented "high-quality development" strategy since the beginning of this year.
Chen Lei, Chairman and Co CEO of Pinduoduo Group, also stated, "With the implementation of a series of consumer promotion policies, the demand for consumer upgrading is becoming increasingly strong. At the same time, we can see from user behavior that consumer upgrading is not only related to quality, but also to price. It is the optimization of the 'quality to price ratio' and the ultimate pursuit of consumers for affordable goods."
Previously, Securities Times reporters sorted out the holdings records of domestic private equity giants in the US stock market and found that Pinduoduo is a heavy holding stock of billions of private equity firms such as Jinglin, Gaoyi, and Hillhouse. Data shows that Pinduoduo is the largest holdings of Jinglin Asset in the US stock market, accounting for nearly 20% of its US stock holdings. During the third quarter, Jinglin Asset continued to increase its holdings in Pinduoduo, increasing from 4.7 million shares to 5.1586 million shares, corresponding to a market value of 506 million US dollars.
Pinduoduo is also the largest holdings of Gaoyi Asset, accounting for over 28% of its US stock holdings. During the third quarter, Gao Yi Asset sold 574400 shares of Pinduoduo, and the year-end shareholding decreased to 1.1163 million shares, with a stock market value of approximately 109 million US dollars at the end of the period.
Among the three major private equity firms, Hillhouse Capital holds the largest market value of Pinduoduo, with a stock market value of over 720 million US dollars at the end of the third quarter. Pinduoduo is the second largest holdings of Hillhouse Capital.
The essence of the e-commerce industry is to achieve efficient matching between supply and demand. Whether it is traditional e-commerce, vertical e-commerce, or still growing live streaming e-commerce, user demand has always been an important driving factor for the continuous evolution of the industry. Tianfeng Securities believes that within one year of its establishment, Pinduoduo has reached 100 million users, with a monthly GMV exceeding 100 million. This is because it has captured some of the sinking market users overlooked by top platforms on the demand side, and has taken on some micro commerce merchants and long tail merchants from top platforms on the supply side. The combination of WeChat traffic and human based social fission traffic distribution is the result of multiple factors working together.
For the current performance of the company's stock price, Tianfeng Securities stated that the expected growth and realization of the company's main website may have been reflected in the stock price, but the company's stock price has not yet reflected the commercialization of new businesses. It is recommended to continue to monitor the breakeven situation of Duoduo Maicai and the growth of TEMU's overseas GMV. If there are positive changes, the company's valuation may be further improved.