not vested
Sea Ltd. - More E-Commerce Growth AheadBoth 4Q23 revenue and PATMI were in line with expectations.
FY23 revenue was at 98% of our FY23e forecasts, while PATMI was ~US$0.7bn below.
Sea has hit its first profitable year since its IPO in 2017.
Shopee is gaining market share against its competitors, with both GMV and gross orders growing strong (29%/46% YoY), driven by increased investments in the business since 3Q23.
Garena is guided to increase by double digits after two years of decline.
We raised our FY24 revenue growth rate/PATMI by 2%/ driven by higher e-commerce and gaming growth.
We expect FY24 to be profitable given profitability contribution from Garena and Shopee.
We roll over an additional year of valuations and downgraded our recommendation from Buy to Accumulate due to a recent share price change.
Our DCF target price is raised to US$70 (prev. US$61), with an unchanged WACC/growth rate of 7.6%/3%.
Source: Phillips
https://www.poems.com.sg/stock-research/SE/
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