LB Select
2023.11.29 08:43
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Quick Look at Major Banks | PDD's target price has been significantly raised! MEITUAN-W, on the other hand, has been "heavily cut", but is there still room for doubling?

Goldman Sachs stated that PDD's strong performance in the third quarter indicates a continuous expansion of its market share in the domestic e-commerce business, as well as a robust growth momentum in its cross-border e-commerce business, Temu. It is expected that these advantages will continue in the fourth quarter of this year and next year. PDD is the preferred choice in the Chinese e-commerce sector.

Morgan Stanley: Maintains "Overweight" rating on PDD, raises target price by 21% to $170

Based on the latest closing price of $139, this price implies a 22% upside!

The bank stated that PDD's strong performance in the third quarter indicates continued expansion of its market share in the domestic e-commerce business, as well as strong growth momentum in its cross-border e-commerce business, Temu. These advantages are expected to continue in the fourth quarter of this year and next year. PDD is the preferred choice in China's e-commerce sector.

The bank predicts that Temu's gross merchandise volume will reach $8.6 billion in the fourth quarter, with a commission rate of 38.5%. Therefore, it is forecasted that PDD's fourth-quarter trading service revenue will grow by 321% YoY, and total revenue will grow by 111% YoY.

The bank predicts that the total annual sales will grow by 30% YoY, and the net profit under non-GAAP will reach 60 billion yuan, implying a non-GAAP net profit margin of 24.7%, compared to 30.3% last year.

Goldman Sachs: Maintains "Buy" rating on MEITUAN-W, lowers target price by 14% to HK$176

Based on the latest closing price of HK$90.45, this price implies a 95% upside!

The bank has lowered its revenue forecast for the company for the years 2023-2025 by 1-5%, and adjusted its operating profit forecast for the same period by 9-14%. The main reasons are the adjustment of food delivery growth expectations and the slow growth or reduction of losses in new business revenue.

Credit Suisse: Maintains "Buy" rating on BYD, target price of HK$331

Based on the latest closing price of HK$211.8, this price implies a 56% upside!

The bank stated that BYD's channel inventory cycle at the end of November was about 40 days, estimated to be equivalent to inventory levels of about 400,000 to 450,000 vehicles. The company will implement a new round of price cuts to boost sales, which will affect the average selling price of each vehicle in the fourth quarter. The launch of Huawei's smart car will also change the situation in the new energy vehicle market.

However, the bank remains optimistic about BYD's growth prospects, mainly due to economies of scale, increased contribution from high-end brands, and higher profitability in exports, which will maintain stable net profit per vehicle. The bank pointed out that in addition to the 3 new models of the F3 series, another 12 new models will contribute to sales growth next year. The increase in sales of higher-end models will drive the company's profitability.

In addition, it is estimated that the export sales in the next two years will reach more than 230,000 and 400,000 vehicles, respectively, and the high export profit margin will also help improve the profit composition.

CICC: Maintains "Buy" rating on Xiaomi Corporation-W, target price of HK$19 If calculated at the latest closing price of HKD 15.48, this price implies a 23% upside potential!

The bank believes that Xiaomi's impressive performance in Q3 demonstrates the success of the company's core business strategy of emphasizing both scale and profitability. Innovative products such as the Xiaomi 14 series have strengthened its competitiveness in the high-end market.

Looking ahead to Q4 performance, the bank expects the company to continue its year-on-year and quarter-on-quarter growth momentum in terms of revenue. The bank predicts that the company's Q4 revenue will reach RMB 72.8 billion, a year-on-year increase of 10.2%. Adjusted net profit is expected to reach RMB 3.25 billion, a year-on-year increase of 122.8%.