The US-listed shares of Pinduoduo Inc.
PDD,
jumped 10.1% to a one-year high in premarket trading on Monday, after China-based mobile market reported better-than-expected third-quarter profit and revenue, as the strength of online marketing and trading services offset some of the weakness in commodity sales. Net income increased to RMB 10.59 billion ($1.49 billion), or RMB 7.34 per share, from RMB 1.64 billion, or RMB 1.15 per share, in the same period last year. Excluding non-recurring items, adjusted earnings per US custody share (ADS) was RMB 8.62, beating FactSet consensus of RMB 4.79. Revenue rose 65.1% to RMB 35.5 billion ($4.99 billion), well above FactSet consensus of RMB 30.71 billion. Revenue from online marketing services increased 58% to 28.43 billion RMB and from transaction services increased 102% to 7.02 billion RMB, while sales of goods decreased 31% to 56.4 million RMB. Cost of revenue increased much less than revenue growth, increasing only 13% to RMB 6.56 billion. Shares are up 12.8% year-to-date through Friday, while the iShares China Large-Cap ETF
Forex,
fell 30.8% and the S&P 500
SPX,
fell 15.5%.
