DIDIY's shares have been under pressure as relisting of its shares to a major exchange (HKSE) and resumption of its apps continue to be delayed. Moreover, given its loss nature, the stock is punished along with other high beta, unprofitable companies in a higher interest rate environment and weaker RMB.
However, fundamentally, DIDIY didn't deteriorate in a challenging macro environment in China. Despite more COVID-19 lockdowns, DiDi further penetrated the transportation market in terms of traffic. When I compare DIDIY’s orders vs total passenger traffic, it continued to trend higher. In addition, as I mentioned last week, DIDIY gained market share in China private car orders in August. DiDi's Q3 mobility transactions in China is trending down 5% YoY - a significant improvement from 1H 2022.
With shares below $2, DIDIY is trading at only 0.27x P/Mobility GTV which looks cheap if can grow 15-20% next year. I would buy on the weakness.
