PDD Holdings: Attractive E-commerce Investment

This is a news story, published by Yahoo Finance (Canada), that relates primarily to Pinduoduo news.

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PDD Holdings

GuruFocus | Stock Market Research, Data and Tools

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PDD Is Currently a High-Growth Value Opportunity

Summary

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82% Informative

PDD Holdings is arguably one of the most attractive Chinese e-commerce investment on the market right now.

The company's main dominant revenue generator ( around 90% of total sales) is Pinduoduo , which combines group buying with social shopping by leveraging platforms like Tencent 's WeChat.

PDD 's consumer-to-manufacturer model that cuts out intermediaries allows it to offer cost-competitive products.

Management has collaborated with over 400 luxury brands to combat counterfeit goods.

PDD Holdings has shown slowing revenue growth compared to historically, with three-year revenue growth of 46% compared to 59% as a 10-year median.

Despite the company having a strong gaming system to boost user engagement, I believe this could come under more scrutiny in the future by the Chinese government.

Pinduoduo has already faced scrutiny for selling counterfeit goods and is affected by ongoing monopoly scrutiny.

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