25th Community Meetup: Pinduoduo Stock Analysis & Q426 Market Outlook

Last week, I traveled to Johor and attended the Extraordinary General Meeting (EGM) held by Well Chip, in relation to the Rights Issue for the upcoming aggressive expansion.

I shared my initial thoughts on the Rights Issue when Well Chip first announced:

Well Chip RM120 mil Rights Issue: Trap or Growth?

Well Chip betting big to grow its pawnbroking business, shareholders to expect more stores, more loans and more dilution.

So, this is adulting by DoitDuit • DoitDuit | Your Investing Friend

Just to share something interesting. Well Chip management stayed in Singapore, so they need to travel down to Johor to attend the EGM that day. Apparently that is the first day of Singapore’s school holiday, so the Causeway Link was very jam. The whole management team was late to the EGM for 1 whole hour.

Details of Rights Issue

A summary of the Rights Issue:

In simple words:

• Every shareholder will be given the 1 “Rights” for every 5 Well Chip shares, e.g. 200 Rights for 1,000 shares. This “Rights” will appear in your trading account;

• Shareholders can choose to exercise or sell the “Rights”;

• If shareholder exercise, then they need to pay the the issue price (to be determined in end-Sep) for every right to receive Well Chip shares; and

• If shareholder sell the “Rights” on the market, shareholder will receive the market price of the “Rights” and cannot exercise the “Rights” anymore.

The reason for the Rights issue:

Notes from EGM

Plantation Sector Growth over the past 1 year

The plantation sector in general has seen relatively strong performance in the past year compared with many other sectors.

Jaya Tiasa 1Y share price chart

However, Jaya Tiasa remains one of the most laggard plantation counters in Bursa Malaysia among the more established players.

Substantial shareholder of Jaya Tiasa selling shares

I initially chalked it up to the exiting of one of their major shareholders, Genine Chain Ltd from Hong Kong. After all, I have mentioned a few times that I believe a big issue plaguing companies in Bursa Malaysia is liquidity, and have also demonstrated how mechanical selling can put unreasonable selling pressure on a stock price even when fundamentals remain stable or are improving.

Snapshot of paid subs groupchat message

The above is an example of how mechanical selling had pushed COASTAL’s share price way below even its net cash values.

COASTAL 1Y share price

COASTAL had since rebounded over 60% in the subsequent months. Besides COASTAL, I also highlighted similar setups in FPI and PANAMY, both of which had a meaningful bounce after the selling was done.

Nevertheless, Jaya Tiasa’s disappointing results explain why the company remains such a laggard compared to its peers.

Jaya Tiasa annual revenue & profit

Yet, the company remains positively cash generating and debt free. Without further ado, let’s dig into the numbers together.

Thank you all for coming over to DoitDuit 24th Community Meetup, it is always great to see all of you face to face!

We conducted a live stock analysis with a case study on Meta, the company behind:

• Facebook;

• Instagram;

• Whatsapp; and

• Threads.

Mark Zuckerberg: From Facebook to Meta

It’s very important to understand Mark Zuckerberg (Meta’s founder) when you study Meta, because even though he only owns 13% of Meta’s shareholding, his voting power is 61%. This means he can control the direction of this trillion dollar business wherever he wants.

Some of our observations:

1. Zuck dont like the advertising business, he wants to be a platform and be in control: In 2009, when iPhone became the new interface to replace PC desktop, Facebook didnt immediately build a smartphone app because Zuck dont want to be under the control of iOS and Android. Not until 2012 when Facebook was going to IPO, that Facebook was forced to build their own mobile native app for advertising to sell their growth story. Even so, Facebook launched their own Facebook smartphone in 2013, but Zuck gave up after poor sales. Zuck’s mentality continues in his pursue over Facebook Payment, Metaverse, VR Headset, Smartglass and Personal SuperIntelligence, all of these investments are burning cash with no clear return to shareholders.

2. Zuck will copy if he cant acquire: Zuck only build Facebook. Instagram and Whatsapp are acquired. Threads, Stories and Reels are copied from their biggest competitor. Normally Western business are ashamed for copying others, Zuck constantly copy, and this is good for shareholders.

3. Zuck takes action when opportunities arise: In 2023, when Elon Musk acquired Twitter and made huge changes to Twitter, many users were exiting Twitter. Zuck immediately launched Threads globally, connecting Instagram for Threads login. Now Threads has >500 mil users, beating Twitter. In 2020, when India banned Tiktok and US was considering to ban Tiktok, Zuck again launched Reels as an alternative to capture the demand for short video.

Understanding all the above is very important if you plan to become a long term Meta shareholder.

Meta’s Competitive Advantage

Generally, there are 6 types of competitive advantage for a business:

• Branding;

• Regulatory;

• Switching Cost;

• Cost Advantage;

• Network effect; and

• Distribution.

5E Resources Holdings Bhd (5E) started in 1997, initially focused on trading chemicals and providing maintenance services for wastewater treatment plants. It subsequently grew into scheduled waste management business as industrial activity picked up in Malaysia and demand for waste management improved.

5E IPO at RM0.26 per share

5E is a fresh IPO company in Bursa, having been listed since 15 April 2026. Formerly, they were listed in Singapore but decided to delist there and relist back home.

Let’s explore a less-talked about segment and see whether a waste management company, 5E could be the beneficiary of a long term secular trend.

Next community meetup is on 22 Aug 2026 (10am) @ Co-labs Starling, we will share about Meta stock analysis + market outlook. Will send out registration link at 16 August 2026 (Sunday) 12pm.

The biggest week for earnings season is over with Microsoft, Alphabet, Meta and Amazon reporting their 2026Q2 earnings result.

This quarter’s result is especially interesting because it tells us a lot about the strategy each business is pursuing in this AI race.

When you look at the sector growth, the highest growth area is (by ranking):

1. Cloud & AI Infrastructure;

2. Advertising;

3. Enterprise Software.

This shows that AI demand is directly generating more revenue for hyperscalers.

I attended Yinson’s AGM last week. The management explained about their outlook and direction, and subsequently spent close to two hours taking Q&A from participants both physically present and virtual ones.

One key tone change is the transition towards the cash harvesting phase from the heavy CAPEX phase. Going forwards, Yinson does not expect any further fundraising and will look to secure 1-2 projects every year. There are ample jobs available, and Yinson wants to be very selective on which ones they take up, as their capacity is limited.

Over the weekend, I moderated a session with Sean (@iherng).

After the session, someone came up and asked this question:

“If can get stock investment with good return 8% p.a., why invest in property?”

I thought this is a good question, let’s run a real life example of a Malaysian who just saved up RM100,000, and see the return from property vs stock investing.

Property Investment: RM100k Real Life Example

In the session, Sean mentioned that the infamous property in KL, M Vertica is famous for being cashflow positive even if it’s a super high dense 3,600 units development (over 5 towers) and highly criticised. So let’s use this as an example.

The US market is now trading at near all time high.

But at the same time you see many good business trading at near 52W low.

All stocks related to AI buildup are especially hit badly, with concerns that:

• AI demand is not sustainable with supply catching up to demand sooner than expected;

• AI model will commoditise with newer & cheaper model achieving what the leading AI model paid a lot to achieve; and

• China will enter the market to commoditise companies involved in building the “shovels” for AI buildout.

Because of these concerns, we are seeing the market rotating their investments towards companies that are more “value” and less exposed to the AI boom (as shown in the Russell 1000 Value ETF and S&P500 ex Magnificent 7 ETF).

Conglomerates typically trade at major discounts, especially if they have poor track records. This is because the structure of a conglomerate holding company adds a layer of opacity compared to a company with a cleaner corporate structure. As such, deeply undervalued conglomerates tend to remain undervalued for a long time and become classic examples of value trap.

However, when a company has been growing its topline, bottom line, and dividend payouts over many years, it’s difficult to call it a value trap any more.

Revenue and Net Profit for the past 10 years

Dividends paid and dividend payout ratio for the past 10 years

I strongly believe that share price returns are not necessarily a reflection of the health of the underlying business, and this is especially the case when liquidity is tight.

With that being said, let’s take a deeper look into this company.

PDD share price

“Cheap” and “Undervalued” are 2 different things. This is a lesson I learnt over time and keep reminding myself not to fall into the trap of getting excited over “undervalued” things, when it’s just “cheap”.

With this in mind, let’s start the financial analysis of Pinduoduo (PDD).

PDD after IPO

Colin Huang interview pre-IPO

In 2018, Colin Huang chose to IPO PDD on Nasdaq, instead of the China or Hong Kong stock market. When Colin Huang was asked why IPO in the US, he answered:

“We think the e-commerce business is closely tied with social impacts and responsibilities … with public scrutiny and regulatory supervision, we may grow better and stronger. On the other hand, we wish to gain more credibility globally by being a public company.”

At that time (TTM pre-IPO), PDD was generating:

• Revenue: CNY$3 bil (~US$493 mil)

• Operating loss: -CNY$633 mil (~US$101 mil)

• Net loss: -CNY$518 mil (~US$83 mil)

PDD Free Cash Flow since IPO (CNY’bil)

Although PDD was making losses based on accounting standards, the company was actually generating free cash flow of CNY$546 mil (~US$87 mil). This positive cashflow generation continued until today.

PDD Holdings is the company behind 2 major e-commerce site:

1. Pinduoduo; and

2. Temu.

Since hitting its all-time peak share price of US$212 with US$220 billion market cap in February 2021, PDD share price has declined -64% to US$75 today.

With such depressed share price, now is a good time to analyse the company in depth.

Colin Huang, the man behind PDD

Colin Huang, founder of PDD

To understand PDD, it’s very important to study the founder, Colin Huang. He was once China’s richest man for 18 days, which then his net worth collapsed following PDD’s share price crash in 2024. Some people said Colin Huang purposely wanted PDD share price to crash so he will not appear in the spotlight.

Well Chip plans to issue a RM120 mil rights issue to fund its pawnshop expansion. We shared about the pawnbroking industry before: https://www.doitduit.com/p/conversation-with-pawnbroker-soaring-gold-price-and-pawnbrokers

Share price crashed -15% since the rights issue announcement and -30% YTD. Well Chip is now trading below its IPO price.

Let’s assess this cash call to see if it’s a good time to enter.

Details of Rights Issue

Mechanics of Well Chip rights issue:

In simple words:

• Every shareholder will be given the 1 “rights” for every 5 Well Chip shares, e.g. 200 rights for 1,000 shares. This “rights” will appear in your trading account;

• Shareholders can choose to exercise or sell the “rights”;

• If shareholder exercise, then they need to pay the RM1.00 minimum issue price for every right to receive Well Chip shares; and

• If shareholder sell the “rights” on the market, shareholder will receive the market price of the “rights” and cannot exercise the “rights” anymore.

The reason for the rights issue:

Why Rights Issue

18th DoitDuit Community Meetup

Hello my friends!!

The next community meetup is on 20 June 2026 (Saturday)!!

What to expect:
1️⃣ Google Stock Analysis and Valuation (2 hour)
2️⃣ Q&A with Guan and HY (1 hour)

With Google issuing US$85 billion stock, the stock market do look bubbly. At times like this, it's important to step back and not be distracted too much by macro news. This time we will be conducting a live stock analysis and valuation of Google with everyone. 

*******

Hope to see you all next weekend!

Until then, stay safe and stay strong investing.

Regards,
Guan🍉and HY🦭 
DoitDuit

So, this is adulting is intended for a single recipient only, but occasional forwarding is totally fine! If you would like to order multiple subscriptions for your team with a group discount (minimum 5), please contact us directly.

Thanks for being a subscriber, and have a great day!

I covered IJM before and highlighted the valuable assets they have, and why they are under pressure now to unlock value for the shareholders.

You may read the previous article here: https://www.doitduit.com/p/ijm-tactical-opportunity-to-ride-on-dc-boom-plus-value-unlocking-exercises

Results at a glance:

IJM’s Annual Net Profit for the past 10 years

There’s no sugar coating it: the reported profit numbers are not good. This is actually their worst annual profit since the 2008 financial crisis.

In the latest quarter, the reported a net loss of RM174 mil which is also the worst quarterly performance since 2008.

Even after adjusting for:

• FOREX losses of RM94.7 mil;

• Inventory write offs of RM121.6 mil; and

• Provisions for unexpected expenses in India of RM51mil;

The final net profit after tax in the final quarter only amounted to RM93.3 mil.

And yet, this is not really important. Let’s sweep away the noise and focus on what matters: The Performance of IJM Construction (IJMC) specifically.

Disclaimer: This article is in no way financial advice, nor solicitation to buy or sell shares in this company. It is purely for educational purposes only. You are highly recommended to conduct all necessary due diligence and make your own informed decisions before making any financial decisions. The writer already owns shares in this company and may at any point in time increase or reduce their position without prior notice. Do not try to copy trade!

I attended the Dutch Lady AGM on 20 May 2026. Interestingly, I saw a few friends there who are new shareholders of the company. Here are my notes from the session.

Largest companies in the world on 27 May 2026

As mentioned in the previous article, AI Agent is the inflection point because AI demand is no longer limited by human attention. This has created many shortage in the whole AI supply chain. The biggest beneficiaries right now are the memory players, all 3 oligopolies in the memory industry has crossed the US$1 trillion market cap milestone.

The rise in Samsung, SK Hynix and Micron is because of:

1. Huge imbalance in supply-demand for memory; and

2. Oligopoly market structure in the memory space.

Right now, the bottleneck is in semiconductors (and will continue to be constrained). Moving forward, it’s expected that constrain will start to move towards the power layer.

Power Constraint

When we say the constraint is in the power layer, you might think of the power generation, but that’s not the full picture. There are 3 perspective to the power constraints:

• Off-site power generation: Power plant far away from end-user, electricity generated delivered through electric grid

• On-site power generation: Power plant in data centers, e.g. gas turbines, solar, nuclear etc

• Power semiconductor: Devices that convert, control and distribute electricity once power reach data center and AI rack

We will focus on power semiconductor because there is an upcoming catalyst for a ramp up in this area soon: Nvidia pushing for 800VDC (VDC means “Volts Direct Current") for the next generation Rubin Ultra/Kyber system starting in 2027.

1. Sunway’s Failed Voluntary Takeover Offer

On 12 Jan 2026, Sunway launched a gutsy move to takeover IJM, offering to buy IJM shares at RM3.15/share in a deal to be satisfied in:

• 10% cash payment; and

• 90% Sunway shares at RM5.65 per share.

At the time, I wrote a brief note on the corporate action in our Paid Subscribers Telegram Group, and I mentioned that IJM is the bigger loser in the deal, and I was doubtful if the government funds would accept the offer. 

Excerpt from an interview between The Edge and IJM’s Managing Director

During the subsequent weeks, IJM’s MD and CEO, Dato Lee Chun Fai, alongside the board of directors, as well as the independent advisor, unanimously advised all shareholders to reject the takeover offer by Sunway. Dato Lee even went on media to explain how he sees the value in IJM and what steps they are planning to realize that value.

On 6 April 2026, the deal officially failed as Sunway only managed to secure 33.43% of shares amounting to 1,171.7 mil shares.

With that out of the way, what is next for IJM?

In the previous article, we provided a detailed guide on the best Cashback Credit Card strategy. If you haven’t read it yet, you can read it here:

Which Cashback Credit Card is Best for You? (Part 1)

Ultimate guide to cashback credit card in May 2026! We go through 195 credit cards in Malaysia to find out.

So, this is adulting by DoitDuit • DoitDuit | Your Investing Friend

The downside of the Cashback Credit Card strategy is that once your spending level increased above RM4k/month, your effective cashback yield starts to drop. This is when changing your credit card strategy to accumulating Airline Miles will give you higher value in return.

In today’s article, we will provide a detailed guide on the best Airline Miles Credit Card strategy.

There are over 195 credit cards in Malaysia, we go through all of it and found the best credit card strategy, depending on your spending level.

Basics about Credit Card

There are mainly 2 types of credit cards in the market:

• Cashback credit card: Straight forward, every month you will receive cash according to your credit card spending; or

• Points credit card: Credit card points can be used to exchange into products, vouchers, and the highest value reward is Airline Miles.

Which credit card strategy you should use, is heavily dependent on:

• Income level;

• Spending level; and

• Lifestyle.

In general, to get the most value from credit card, it is best to choose between one of the strategies below:

• Pure Cashback Strategy; or

• Pure Airline Miles Strategy.

Once you have decided on the strategy, you must stay committed and avoid switching in between strategy, especially on the “Pure Airline Miles Strategy” because it takes time to accumulate the points you need.

Let’s get straight into the result of our findings.