PDD Holdings: Balancing Strong Q3 Profit Beat with Cautious Outlook Amid Slowing OMS Growth and Competitive ChallengesWe’re encouraged that the profit decline from heavy platform investments appears to have bottomed as YoY base normalizes. However, a new concern has emerged: OMS grew only 8% YoY this quarter (vs. 13% YoY in 2Q25), marking its first single-digit growth and raising questions about future sales momentum and market share. We believe the slowdown was mainly driven by a declined marketing take rate due to continued ecosystem investments incl. contra revenue merchant rebates, and model domestic GMV growth of 13.8% YoY in 3Q. However, looking ahead, we acknowledge that OMS growth will inevitably moderate to a mature phase as the co. surpasses RMB5trn GMV. This deceleration is compounded by an industry facing sluggish overall growth and mgmt.’s guidance pointing to intensifying competitive dynamics and continued merchant support to sustain a healthy ecosystem.