Pinduoduo (PDD.O) will report Q2 results on Monday. A FactSet survey of nine
analysts projects net profit of 24.4 billion yuan vs 30.75 billion yuan a year
earlier, and revenue of 115.41 billion yuan vs 103.99 billion yuan a year
earlier. Citi expects adjusted net profit to decline about 28% YoY, flagging
weak online marketing revenue and the risk that non-operating income could again
affect revenue and profit. Deutsche Bank says fundamentals have not bottomed and
sees no near-term catalysts, citing intensified competition from live-streaming
and social commerce, regulatory pressure on Temu in Europe, a prolonged lack of
stable shareholder returns and insufficient disclosure transparency.
