- Dingdong has maintained high growth over recent years, achieving the largest GMV and user base in the sector.
- High costs and increasing competition with top players and fragile business models are the main risks.
- Impacted perhaps by Missfresh's bad performance on IPO day, Dingdong reduced its ADS listing amount just before its IPO, which may become the reason why investors are negative.
- Though investors are negative now, we still believe the stock is undervalued.
For further details see:
Dingdong: High-GMV Fresh On-Demand E-Commerce Player; Profitability And Costs Are Key