-Sea has tripled since June, is up 25.6% YTD, and was even slightly up in today’s massive sell-of-
Some highlights that stuck out from the article:
-Southeast Asia has a youthful tech-savvy population with the median age being 30 years, and of the region’s 649 million population, four hundred million are online, 90% of them mobile-first which plays very well into Sea’s highly popular mobile game - Free Fire, and its e-commerce platform - Shopee, both of which were developed with a mobile-first approach from the get-go.
-Southeast Asians are also avid internet users; of the top 10 countries in APAC region by average daily time spent using the internet, six are in Southeast Asia namely Philippines, Malaysia, Indonesia, Thailand, Singapore, and Vietnam. These countries beat out developed nations such as Australia, South Korea, and New Zealand.
- With 94% of them intending to continue using the online service post-pandemic, this Covid-induced digital transition is likely to outlast the pandemic, signaling a long-term behavioral evolution rather than a temporary adjustment.
-E-commerce penetration still has tremendous room for growth in almost all of Shopee’s markets in Southeast Asia; online retail accounts for just 1% of Southeast Asia’s total retail sales, compared with about 6%-8% in Europe and North America. This indicates ample room for growth for Shopee going forward.
The Fintech Opportunity
- 70% of Southeast Asians are underbanked or unbanked, meaning they have no access to bank accounts, credit services, or other financial services.
Financials
-Sea has delivered solid top-line growth, and shows no sign of stopping; revenues soared 163% year-on-year in 2019 to USD 2.1 billion, (compared with 99% YoY growth the previous year when revenues jumped to USD 826 million from USD 414 million a year earlier). According to the latest full year results presented in their latest earnings call, revenues rose 101.1% YoY, registering another year of triple-digit revenue growth rates.
-Sea’s operating margin and net loss margins have been consistently improving over the past few years. Operating loss margins dropped from 121% in 2017 to 40.9% in 2019, and net loss margins dropped from 135% in 2017 to 67% in 2019.
Full article below:
https://seekingalpha.com/article/4410973-sea-digital-economy…
Long SE (10%)