Southeast Asian tech giants $Grab Holdings (GRAB.US)$ and $Sea (SE.US)$ recently announced results that exceeded expectations and achieved the goal of turning losses into profits year-on-year. Grab and Sea's stock prices both rose by more than 10% after announcing exciting third-quarter results.
Grab, known as the "Didi" of Southeast Asia, saw its revenue in the third quarter increase by 17% year-on-year to US$716 million, exceeding analysts' expectations of US$697 million. During this period, Grab turned losses into profits, with net profit in the third quarter reaching US$15 million, compared with a loss of US$99 million in the same period last year. In addition, Grab also raised its full-year performance expectations, with strong revenue growth and higher profitability as its key drivers.
Southeast Asia's "Little Tencent" Sea also announced its latest results. The company's revenue in the third quarter was US$4.328 billion, a year-on-year increase of 30.8%, exceeding analysts' expectations of US$4.08 billion. Net profit was US$153 million, compared with a net loss of US$144 million in the same period last year. Sea's CEO Li Xiaodong said the company achieved rapid growth in all three major business areas, showing very solid growth in the third quarter.
The two technology giants have benefited greatly from the rapid economic development of Southeast Asia. Southeast Asian countries such as Indonesia, Thailand and Vietnam are experiencing strong population growth and have a large and rapidly expanding Internet user base. As the profits of these two companies continue to increase, it further proves that this vibrant region still has huge development potential.
Southeast Asian technology leaders have reported good news during the earnings period, and Southeast Asian technology themes may continue to usher in allocation opportunities. Sea and Grab are the top two holdings of the Southern East Asia iEdge Pan-Southeast Asia Technology Index ETF ( $CSOP SEA TECH ETF S$(SQQ.SI)$ / $CSOP SEA TECH ETF US$(SQU.SI)$ ), which fully covers Southeast Asian technology leaders. It is recommended that Singapore investors continue to pay attention and capture new opportunities for Southeast Asian technology growth with one click!
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