crashbandicootps5| Big Bank Rating| UBS: Raise its target price for CIANDOO to US$272 and raise its adjusted earnings per share forecast for fiscal year 2024-26

UBS issued a report sayingcrashbandicootps5Pinduo's first-quarter results exceeded expectations, with revenue of 86.8 billion yuan, a year-on-year increase of 131%, exceeding expectations by 13%. It was mainly due to the growth in revenue from online marketing services and transaction services, as well as the steady growth in core commodity turnover and Temu expansion. Adjusted operating profit and net profit were 28.6 billion yuan and 30.6 billion yuan respectively, and profit margins were 32crashbandicootps59% and 35.3%, setting record highs, 92% and 102% higher than expectations respectively.

Based on the expectation that Temu's operating loss can narrow, the bank raised Pinduo's adjusted earnings per share forecast for the fiscal year 2024-26 by 35% to 68%, and its target price increased from US$248 to US$272 accordingly, maintaining its "Buy" rating.