Pinduoduo

This is our first report on Chinese internet giant, Pinduoduo. The company performed well in the last quarter and managed an all-around beat. In the past few months, various product categories of Pinduoduo, such as beauty and cosmetics, consumer electronics, and agriculture, have performed particularly well. In Agriculture, it kept promoting its holistic approach to digitalizing the agriculture sector. In September, the company launched a dedicated amidst availing for platform for supporting the annual harvest festival to the company’s exclusive e-commerce platform pattern. The company is partnering with Zhejiang University and China Agricultural University. During the harvest festival, Pinduoduo worked with CCTV as well as assembled professors from China Agricultural University and the Chinese Academy for Agricultural Sciences to promote agricultural products. A new variety of sweet potatoes was introduced that are less prone to disease. In harvest festival, it also showcased improved and new wheat varieties cultivated by the China Agriculture University. Pinduoduo leveraged e-commerce digital technology to shorten the development cycle of products and help manufacturers create products that closely manage market needs. The new craftsman program launched by the company is now in various regions over the country that helps the local manufacturers in building their brands. We initiate coverage on the stock of Pinduoduo with a ‘Hold’ rating.