Aaren Tan Whei Lung

PDD Holdings presents a compelling investment case due to its innovative e-commerce approach, significant growth in the US market through its Temu app, and unique value proposition of offering low-priced products. The company has shown robust revenue growth, outperforming analyst estimates, attributed to its focus on quality assurance and fast refunds. PDD's business model, operating through Temu in the U.S. and Pinduoduo in China, features a gamified shopping experience, which has been crucial in attracting and retaining customers. The company's revenue is driven by sales volume, competitive pricing, and an engaging user experience, while its cost structure is influenced by aggressive marketing and customer acquisition costs. PDD's low pricing and unique shopping experience provide a competitive advantage against both online and traditional retailers.