KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Key Takeaway: PDD Holdings (NASDAQ) will release its Q3 2024 earnings on November 21, 2024, before markets open. Analysts forecast strong revenue and earnings growth, driven by its e-commerce business and the success of the Temu platform.
Consensus Estimates:
- Revenue: Projected at 103.70 billion CNY, up 50.64% year-over-year (YoY).
- Earnings Per Share (EPS): Estimated at 19.77 CNY, a rise of 86.47% YoY.
Key Drivers of Growth:
E-Commerce Momentum:
- PDD’s innovative group-buying model and integration with social media have gained traction.
- Online marketing services revenue: Expected to grow 23.78% YoY to 49.12 billion CNY.
- Transaction services revenue: Forecasted to rise 81.84% YoY to 53.01 billion CNY.
Temu Platform Strength:
- Temu sales: Estimated at $54 billion for 2024, up from $15.33 billion in 2023.
- Global Expansion: Temu’s rapid growth diversifies PDD’s revenue streams, reducing reliance on the Chinese market.
Investor Confidence:
- David Tepper’s Appaloosa Management increased its PDD holdings by 3.36 million shares in Q3.
- Freemont Capital raised its stake by 23.8%, and Vanguard Group expanded its position to 24.26 million shares.
Options Market Insights:
- Volatility Trends:
- PDD’s earnings reactions have been more volatile than market predictions, with actual moves averaging 14.4% versus the expected ±11.7% over the last 13 quarters.
- Bullish Sentiment: A lower 25-Delta Put-Call Spread suggests stronger demand for upside calls than downside puts.
Challenges and Stock Performance:
- PDD’s stock has declined 22% year-to-date, lagging behind broader indices.
- Despite this, analysts are optimistic about its long-term growth potential, supported by its expanding e-commerce ecosystem and Temu's international success.
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