BOCOM International: Based on the recent introduction of policies to reduce billions in fees, we have lowered our forecasts for the company's revenue and profit in the third quarter, expecting profits to remain at around RMB 30 billion. Looking ahead to 2025, GMV and company profits are still expected to maintain double-digit growth. We have adjusted our valuation to 2025 based on a 13x P/E ratio for the domestic e-commerce business, lowering the target price to $188 while maintaining a Buy rating.

We expect domestic e-commerce GMV to grow 15-20% YoY in the third quarter, with monetization rates remaining flat YoY due to merchant support strategies like the fee reduction policy, down about 40 basis points from previous estimates. Adjusted net profit is expected to reach RMB 30.6 billion, up 80% YoY. With the growth of the semi-hosted model, TEMU's loss ratio is expected to continue narrowing. We believe the U.S. region has already achieved breakeven, and TEMU is expected to achieve overall breakeven by 2025. Adjusted net profit for 2024/25 is expected to grow 93%/29% YoY.

Is the current price good? Only you can decide.$PDD(PDD.US)