- Chinese stocks are now very cheap. What's more, post-lockdown China is once again a very interesting place to deploy capital.
- Pinduoduo reports Q1 2022 results that saw a strong increase in profitability y/y.
- The business, excluding merchandise sales, saw revenues grow by 39% y/y.
- With more than 700 million MAUs on Pinduoduo's platform, you have a business with a moat. That's a fact.
- Pinduoduo shows that despite reducing its reliance on coupons, Pinduoduo's MAUs have not come down. According to my estimates, the business is priced at 20x clean GAAP profitability.
For further details see:
Pinduoduo: Easing Lockdown Makes This Chinese Player Very Attractive