Sea Ltd SE (former Garena)

[winston]

SEA's 3Q Losses widen to US$133m on higher costs and expenses

Source: The Edge

https://www.theedgesingapore.com/seas-3 ... 0-87358173

[winston]

New report: Leading e-commerce & online game provider in GSEA

We initiate coverage of Sea Limited (Sea) with an OUTPERFORM rating and target price of US$16.50. We like Sea for its solid gaming business and its potential to be one of the leading e-commerce platforms in South East Asia and Taiwan (GSEA).

Key risk to our valuation comes from intense competition in e-comm.

Sea is the leading online gaming platform (Garena) in GSEA with revenue market share of 11.9% (1H17). We expect it to continue to gain market share with gross billings expected to grow at a five-year CAGR (2016-21E) of 26.0%, owing to its strong relationship with Tencent and solid local market knowledge.

Sea’s third-party marketplace (Shopee) in GSEA has achieved rapid GMV growth since its launch (in 2015), and 2017E GMV is expected to reach US$3.9 bn. We believe that Shopee is likely to
emerge as of one of the leading e-commerce platforms in GSEA as it has now attained a sizeable scale.

Our valuation for Sea is SoTP based, wherein we value Garena at 2018E P/E of 18.5x (US$3.2 bn). Our DCF-based valuation of Shopee (US$2.5 bn) implies 2018E/19E EV/GMV of 0.53x/0.33x. We expect Sea to turn free cash flow positive in 2021E.

Initiate coverage with OUTPERFORM; TP of US$16.50

We initiate coverage of Sea with an OUTPERFORM rating and an SoTP-based target price of US$16.50, implying ~44% potential upside.

We like Sea due to its solid gaming business and for its potential to be one of the leading e-commerce platforms in GSEA.

We value Garena at 2018E P/E of 18.5x, implying the valuation of US$3.2 bn. Our DCFbased
valuation of Shopee is US$2.5 bn, implying 2018E/19E EV/GMV of 0.53x/0.33x (post factoring cash). We value AirPay/others at 0.7 EV/sales (US$65 mn).

We expect Sea to turn FCF positive in 2021E and, hence, its current cash position should be sufficient to fund the expansion until 2020E.

We believe risk-reward appears favourable post the recent correction as Sea's stock is trading close to our grey sky scenario (~8% potential downside), while upside can be meaningful (~44% to our TP) if it is able to execute well.

Source: CS

[winston]

not vested

Singapore-based Sea, which owns e-commerce platform Shopee and games developer Garena, widened its net loss excluding share-based compensation attributable to ordinary shareholders of US$1.5 billion for FY2021 ending Dec 31, up 17.9 per cent from US$1.3 billion a year prior.

In a filing on Tuesday (Mar 1), the New York Stock Exchange-listed company reported a 127.5 per cent increase in FY2021 revenue from US$4.4 billion to US$9.9 billion.

The increase is driven by growth across all business segments.

Loss per share in FY2021 rose 6.5 per cent from US$2.78 to US$2.96.

Source: Phillips

[winston]

not vested

Sea’s market decline hits US$132 bil as stock tumbles again

by Olivia Poh & Yoolim Lee

The mobile gaming company forecast US$2.9 billion to US$3.1 billion in bookings at its digital gaming arm, set to be its first decline ever. That compares with last year’s bookings of US$4.6 billion.

New Delhi abruptly banned its most popular mobile gaming title.

Focusing on e-commerce revenue growth - Southeast Asia, Brazil and Taiwan.

Expects e-commerce sales to rise to US$8.9 billion to US$9.1 billion in 2022, from US$5.1 billion in 2021.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... bles-again

[winston]

not vested

Driving sustainable growth

4Q21 results dragged by weaker Garena performance; bookings guidance for
FY22F disappointed on post-Covid-19 normalisation and FF’s India woes.

On the positive side, SE guided for stronger Shopee and SeaMoney growth and aims for Shopee to turn EBITDA positive in ASEAN & Taiwan by FY22F.

Reiterate Add with a lower SOP-based TP of US$202.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 00D3EC1EAC

[winston]

Still a proxy to ASEAN digitisation

Free Fire slowdown hits guidance

Sea’s 4Q21 revenue of USD3.2b (+106% YoY) was ahead of our and the street’s estimate.

However, guidance for Garena bookings disappointed.

We cut our FY22-23E revenue by 8-9% but slash our SOTP TP by 56% to USD160 to factor in
i) earnings slow-down and lower multiples for Garena, as well as
ii) switch to FY23E P/S instead of FY22E P/GMV for e-commerce.

While the stock price might face overhang in the near term, we continue to view Sea as a champion of economic digitisation in Southeast Asia and hence maintain our BUY rating.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/254368.pdf

[winston]

not vested

Current Sea Limited Sell-Off a Buying Opportunity: Barclays

Sea Limited Reports Fourth Quarter And Full Year 2021 Results

By Sam Boughedda

Its e-commerce outlook was "solidly ahead" of expectations.

Gaming is legacy for the company, and its future is in e-commerce and fintech.

Source: Yahoo Finance

https://finance.yahoo.com/news/current- ... 20987.html

[winston]

3 Reasons Sea Limited Stock Will Probably Bounce Back

By Jon Quast and Jose Najarro

India banned FF. About 10% of Indian Revenue. Will they also ban Shoppee?

Tencent Selling from 20%.

Source: TMF

https://www.fool.com/investing/2022/03/ ... gn=article

[winston]

not vested

Sea’s Billionaire CEO Opens Up After 75% Stock Crash

by Yoolim Lee and Olivia Poh

Sea lost three-quarters of its value in five months.

Source: Bloomberg

https://finance.yahoo.com/news/sea-secr ... 26342.html

[winston]

not vested

Sea Ltd – Expanding global e-commerce footprint

Shopee to drive revenue growth with CAGR of 62% expected over the next two years.

Foothold in Southeast Asia to strengthen together with penetration into Brazilian market.

Rapid expansion of SeaMoney as an additional growth driver, drawing on synergies with

Shopee for frictionless transactions; segment revenue expected to grow 5x by FY23e.

Profitability of SE’s digital entertainment business concentrated on a single product, heavy reliance on equity markets for funding through convertible notes.

Initiate coverage with a BUY recommendation and DCF-based target price (WACC 6.9%, g 4.0%) of US$196.00.

Source: Phillips

https://www.stocksbnb.com/reports/sea-l ... footprint/