This episode presents a comprehensive financial and strategic analysis of PDD Holdings, examining both its domestic platform Pinduoduo and international platform Temu, incorporating recent Q1 2025 earnings data. It details PDD's social commerce business model and diverse revenue streams, primarily from online marketing and transaction services. The analysis identifies significant short-term challenges such as slowing growth, increasing competition, and international trade frictions, alongside long-term risks like market saturation, regulatory pressures, and geopolitical tensions impacting Temu. A thorough examination of the company's cost structure highlights heavy variable spending on marketing and fulfillment, while the section on management and governance describes the co-CEO leadership and influential founder ownership. The report also discusses shareholder activity, noting concentrated insider control and the recent, albeit modest, share buyback program, concluding with intrinsic value estimations using a discounted cash flow model that suggests the stock is potentially undervalued despite near-term headwinds revealed in the Q1 2025 results.

Speak out Disclaimer: This content only expresses the views of the author(s) as of the date indicated and such views are subject to change without notice. All analysis is based on publicly available sources and may be subject to revisions or differing interpretations. The content is for educational purposes only and does not constitute investment advice. Conduct your own due diligence before making investment decisions. Subscribe us on Apple, Spotify Podcasts or Youtube channel: Deep Value Investing!