(Bloomberg)-PDD Holdings Inc. After Temu's owner reported an increase in profits faster than expected by 18 %, which led to investor concerns about the work of an exhibition of American definitions and the intensification of local competition.
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The stock achieved 4 % in New York, although the e -commerce company has reported revenue less than 110.6 billion yuan ($ 15.3 billion) for the quarter of December. The net income rose to the stronger than expected 27.4 billion yuan.
The results of PDD come at a time of increased uncertainty about its work local and abroad, which helped reduce expectations. TEMU is struggling with the high US tariff for Chinese products and a potential closure of a tax gap for small value parcels. At the local level, PDD warned of competition since August and expected that her profit would go down over time.
The Mooreghan Stanley analysts wrote, adding that the shares were trading in only 11 times of 2025 profits expected 2025 profits expected in 2025 of the expected profits 2025 of the profits: “The” profit win “must help restore market confidence in the profit expectations for 2025”. “Because of the accumulated tariffs on TEMU and the competition in EC, this year's market expectations are not high.”
However, executive officials admitted on Thursday the challenges caused by global uncertainty and said that intense competition also affected short -term growth. They repeated their support for the merchants and efforts to enhance the consumer experience.
“As mentioned in the previous chapters, our great investment in the ecosystem, along with the changing external environment to compete for the short -term financial statements, will affect.”
In contrast, I reported Rivals JD.com Inc. And alibaba Group Holding Ltd. For better sales of characters for December quarter, when Beijing has increased policies such as subsidies and trade incentives to enhance spending. The government gave priority to expanding domestic demand, as the country seeks to compensate for the influence of US President Donald Trump's tariff and achieve a growth goal of about 5 %.
On Thursday's report “lacked any bright point,” JP Morgan and Alex Yao analysts wrote in a note, which cited archeology on both transactions and online marketing service revenues.
Washington is now threatening to close tax -exempt gap that helped expand Timo and Shane in the United States at the expense of Amazon.com Inc. , Chinese retailers may eventually be forced to support traders on their platforms, given the increase in shipping expenses. In response, PDD and Shein have begun to diversify their logistical chains, expand networks in the United States and move to big big orders.
What Bloomberg says intelligence
Miss PDD modified from PDD by 6 %-in the second quarter in a row, the late delayed consensus-and low revenue gains expected to reflect the increasing financial risks of growing global business in TEMU. Amid disturbances for both supply and demand for US supplies for products made in China, PDD will fight to avoid declines in operation if revenue growth remains less than 25 %.
– Catherine Lim Waterini Tan, analysts
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TEMU had already shipped more inventory in large quantities to the United States and pushed tariffs to store it in warehouses near major cities to narrow delivery times. This shift should help the effects of any change in the minimum, but it still applies the pressure to its discount model.
Last year, companies including Shein and TEMU shipped about $ 46 billion of small parcels to the United States, which was declared a declared value of less than $ 800, according to Nomura Holdings Inc. estimates. Which accounts for about 11 % of reported imports in the United States of China.
Elsewhere, the European Union launched an investigation on whether TEMU sells illegal products or has an “additional service design”. Vietnam stopped the platform after failing to meet a date for government registration.
-With the help of Henry Ren and Catherine Nagai.
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