- 国际扩张推动第三季度业绩强劲增长

PDD Holdings (PDD US) reported strong 3Q23 results, with revenue up 94% YoY to RMB68.8bn, beating both our and Bloomberg consensus estimates. This was primarily driven by stronger-than-expected international expansion and incremental commission revenue from the "Ten billion subsidy" section. Non-GAAP net income increased by 37% YoY to RMB17.0bn, 30% ahead of consensus, which we attribute to a narrower-than-expected loss from Temu business, aided by a stronger-than-expected scale effect, and likely better-than-expected profit generation from Duoduo Grocery. The results echo our view that PDD's overseas business is ramping up quickly and is on track to support PDD's long-term revenue and earnings growth. We lift our DCF-based TP by 8% to USD142.6 (was US$131.8). Maintain BUY.