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TIP831: Pinduoduo (PDD): Is PDD the Best Buy in China? w/ Daniel Mahncke and Shawn O'Malley
Description
Daniel Mahncke and Shawn O'Malley take a deep dive into Pinduoduo (NASDAQ: PDD), the Chinese retail giant that has overtaken local competitors like Alibaba and JD.com and expanded internationally with Temu, which has become the most-downloaded e-commerce app in the world. They discuss how to think about the lack of disclosures and what the margin decline and growth deceleration mean for the business going forward. But also whether this presents an exceptional buying opportunity at a single-digit earnings multiple and about 60% of the company’s market capitalization in cash.
IN THIS EPISODE YOU’LL LEARN:
(00:00:00) Intro (00:10:59) How PDD became one of China’s leading marketplaces (00:19:17) What makes PDD’s business model stand out (00:22:58) How PDD compares to Chinese competition (00:31:56) What makes China’s e-commerce market different (00:33:24) What happened to margins and growth (00:47:13) How Temu revolutionized international e-commerce (01:19:31) Valuation discussion of PDD (01:24:59) Whether PDD is valued attractively (01:27:25) Whether Shawn and Daniel add PDD to the Intrinsic Value Portfolio
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
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- Portfolio Review Submit Tool.
- Value Investors Club Pitch on PDD.
- Hayden Capital Investment Memo on PDD.
- Check out our previous Intrinsic Value breakdowns: Amazon, Sea Limited, Mercado Libre, Shopify.
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