Didi Global's Strategic Rebound and Hong Kong Relisting: A High-Conviction Investment Opportunity

In the shadow of regulatory turbulence and operational setbacks, Didi Global has embarked on a strategic resurgence that could redefine its trajectory. For investors, the company's recent financial performance, coupled with its imminent Hong Kong relisting, presents a compelling case for long-term value creation. This analysis examines Didi's revenue recovery, margin dynamics, and the catalytic potential of its relisting, arguing that the firm is poised to capitalize on its restructuring and geopolitical realignments.

Revenue Recovery: A Foundation for Growth

Didi's financial turnaround is anchored in its ability to stabilize and grow revenue amid a challenging macroeconomic environment. According to a report by Bloomberg Law, the company posted a net income of 929 million yuan in Q3 2025, marking its first profit since 2021 and signaling a reversal of fortunes after years of losses. Revenue for the quarter rose 5% year-over-year to 53.9 billion yuan, driven by a 20% surge in gross transactions from international operations. More recent data from Investing.com indicates that revenue growth accelerated to 8.7% in Q3 2025, reaching 58.6 billion yuan, underscoring resilience in both domestic and international markets.

This recovery is not merely a function of volume growth but also strategic diversification. Didi's international segment, particularly in Latin America, has become a critical growth engine. However, as noted by Daiwa Securities, increased investments in markets like Brazil risk diluting short-term profitability, creating a tension between expansion and margin preservation.

Margin Expansion: Navigating Strategic Trade-offs

While revenue growth is encouraging, Didi's operating margin remains a focal point of scrutiny. As of November 2025, the company reported an operating margin of -5.71% for Q3 2025, reflecting operational challenges despite a robust 8.7% revenue increase. This negative margin contrasts with its net income, highlighting reliance on non-operating income or cost-cutting measures to offset losses. Adjusted EBITA, for instance, fell 47% year-over-year to 900 million yuan, according to Yahoo Finance, a decline attributed to aggressive international investments and regulatory compliance costs.

The margin contraction, however, must be contextualized within Didi's broader strategy. The company has adopted IFRS accounting standards, a move that enhances transparency and aligns with global norms, potentially improving investor confidence ahead of its Hong Kong relisting. While near-term margins may remain pressured, the long-term payoff of international market penetration and operational efficiency could drive normalization.

Hong Kong Relisting: A Catalyst for Valuation Re-rating

The most transformative element of Didi's strategy is its anticipated Hong Kong relisting. After being delisted from the NYSE in 2022 following a $1.2 billion fine for data-sharing violations, the company has been recalibrating its relationship with Chinese regulators. As Reuters notes, Didi's relisting in Hong Kong is not just a regulatory necessity but a strategic imperative to regain access to capital markets and restore investor trust.

Though no definitive timeline has been announced, multiple indicators suggest the process is well underway. Strategic leadership changes, public statements from the China Securities Regulatory Commission, and the adoption of IFRS all signal preparation for a 2025 listing. A successful relisting would not only provide fresh capital but also position Didi as a bellwether for the broader trend of Chinese firms shifting IPOs to Hong Kong amid U.S. regulatory scrutiny as noted by Reuters. For investors, this represents a valuation catalyst: a relisted Didi could see improved liquidity, reduced geopolitical risk, and a re-rating based on its renewed market access.

Conclusion: A High-Conviction Opportunity Amid Risks

Didi Global's journey from regulatory scrutiny to strategic rebound is fraught with risks, particularly in its international expansion and margin pressures. Yet, the company's revenue resilience, coupled with the impending Hong Kong relisting, creates a compelling narrative for long-term value creation. For investors with a medium-term horizon, Didi's ability to balance growth investments with operational discipline-while leveraging Hong Kong's financial ecosystem-positions it as a high-conviction opportunity. The key will be monitoring the relisting timeline and the sustainability of its margin improvements, but the potential rewards for patient capital are substantial.