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SaravananR

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- SaravananRSaravananR
  ·2023-12-28
  Good article to knew fact abt sea.
  Sorry, this post has been deleted
  2.09K Comment
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- SaravananRSaravananR
  ·2023-09-20
  Nice
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  2.13K Comment
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- SaravananRSaravananR
  ·2023-09-01
  wrong judgement .. Shopee is bigger than lazada in terms of customer volume or revenue
  Sorry, this post has been deleted
  1.87K Comment
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- SaravananRSaravananR
  ·2023-08-23
  Let's watch it
  Sorry, this post has been deleted
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- SaravananRSaravananR
  ·2023-03-24
  Great to see
  Sea Stock Jumped As Bernstein Raises Estimates Thanks to E-Commerce Strength
  Sea Limited (NYSE:SE) shares jumped nearly 6% in morning trading as investment firm Bernstein raised
  Sea Stock Jumped As Bernstein Raises Estimates Thanks to E-Commerce Strength
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- SaravananRSaravananR
  ·2023-03-09
  Good 👍🏻
  Sea Limited Just Pulled Off a Minor Miracle: Time to Buy?
  Sea Limited posted a surprise net profit in the fourth quarter, a shocking turnaround from a year ago.
  Sea Limited Just Pulled Off a Minor Miracle: Time to Buy?
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- SaravananRSaravananR
  ·2023-03-08
  👍🏻💐
  Sorry, this post has been deleted
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- SaravananRSaravananR
  ·2023-02-19
  Good.. ageed on this
  Sea Limited: Best Contrarian Opportunity For The E-Commerce Leader
  SummaryThe contrarian opportunity comes as investors are not pricing in the full potential for Sea L
  Sea Limited: Best Contrarian Opportunity For The E-Commerce Leader
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- SaravananRSaravananR
  ·2022-11-19
  Super
  Sea Limited: Profitability May Be Around The Corner
  SummaryFurther uncertainty for Sea Limited's Garena as its QAU did not stabilize as expected. New ga
  Sea Limited: Profitability May Be Around The Corner
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- SaravananRSaravananR
  ·2022-11-16
  $Sea Ltd(SE)$
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article to knew fact abt sea.&nbsp;","listText":"Good article to knew fact abt sea.&nbsp;","text":"Good article to knew fact abt 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judgement&nbsp;&nbsp;.. Shopee is bigger than lazada in terms of customer volume or revenue&nbsp;","listText":"wrong judgement&nbsp;&nbsp;.. Shopee is bigger than lazada in terms of customer volume or revenue&nbsp;","text":"wrong judgement .. Shopee is bigger than lazada in terms of customer volume or revenue","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/215193327407312","repostId":"2364219735","repostType":2,"isVote":1,"tweetType":1,"viewCount":1873,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":211934111969304,"gmtCreate":1692772598232,"gmtModify":1692772604207,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"Let's watch it&nbsp;","listText":"Let's watch it&nbsp;","text":"Let's watch it","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/211934111969304","repostId":"2361643366","repostType":2,"isVote":1,"tweetType":1,"viewCount":1361,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9943489523,"gmtCreate":1679631388163,"gmtModify":1679631391642,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"Great to see&nbsp;","listText":"Great to see&nbsp;","text":"Great to see","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9943489523","repostId":"1151963221","repostType":2,"repost":{"id":"1151963221","kind":"news","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1679580890,"share":"https://ttm.financial/m/news/1151963221?lang=en_US&edition=fundamental","pubTime":"2023-03-23 22:14","market":"us","language":"en","title":"Sea Stock Jumped As Bernstein Raises Estimates Thanks to E-Commerce Strength","url":"https://stock-news.laohu8.com/highlight/detail?id=1151963221","media":"Tiger Newspress","summary":"Sea Limited (NYSE:SE) shares jumped nearly 6% in morning trading as investment firm Bernstein raised","content":"<html><head></head><body><p>Sea Limited (NYSE:SE) shares jumped nearly 6% in morning trading as investment firm Bernstein raised its earnings estimates &#34;materially&#34; on the Singapore tech giant, due in part to continued e-commerce gains.</p><p><img src=\"https://static.tigerbbs.com/bfdabe7c5768da9a40df7c9f73330bc4\" tg-width=\"824\" tg-height=\"618\" referrerpolicy=\"no-referrer\"/></p><p>Analyst Venugopal Garre nowexpects the company to generate $11.56B in revenue and $9M in net income, up from a previous view of $9.92B and a loss of $1.95B, respectively. He also tweaked estimates for 2024 as well.</p><p>&#34;E-commerce is the core engine now, with Sea Ltd demonstrating that a low [average order value] business in an emerging market setting can be profitable,&#34; Garre wrote in an investor note, pointing to the increase in third-party take rate to 10.3%, which is expected to rise to 11.5% by the end of the year.</p><p>&#34;Given the increasing efficiency of take rates which are delivering more profitability as against mere cost offsets earlier, gross profit margins should continue to inch up,&#34; Garre added.</p><p>Concerning the company&#39;s gaming initiatives, Garre expects that to &#34;scale down&#34; but potentially offer &#34;option value for the future,&#34; while its financial technology segment is starting to improve its profitability.</p><p>Earlier this month, Sea Ltd. (SE) shares surged after the Singapore tech giant reported fourth-quarter results that blew past Wall Street expectations, led by strength in its e-commerce unit.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Stock Jumped As Bernstein Raises Estimates Thanks to E-Commerce Strength</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Stock Jumped As Bernstein Raises Estimates Thanks to E-Commerce Strength\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2023-03-23 22:14</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Sea Limited (NYSE:SE) shares jumped nearly 6% in morning trading as investment firm Bernstein raised its earnings estimates &#34;materially&#34; on the Singapore tech giant, due in part to continued e-commerce gains.</p><p><img src=\"https://static.tigerbbs.com/bfdabe7c5768da9a40df7c9f73330bc4\" tg-width=\"824\" tg-height=\"618\" referrerpolicy=\"no-referrer\"/></p><p>Analyst Venugopal Garre nowexpects the company to generate $11.56B in revenue and $9M in net income, up from a previous view of $9.92B and a loss of $1.95B, respectively. He also tweaked estimates for 2024 as well.</p><p>&#34;E-commerce is the core engine now, with Sea Ltd demonstrating that a low [average order value] business in an emerging market setting can be profitable,&#34; Garre wrote in an investor note, pointing to the increase in third-party take rate to 10.3%, which is expected to rise to 11.5% by the end of the year.</p><p>&#34;Given the increasing efficiency of take rates which are delivering more profitability as against mere cost offsets earlier, gross profit margins should continue to inch up,&#34; Garre added.</p><p>Concerning the company&#39;s gaming initiatives, Garre expects that to &#34;scale down&#34; but potentially offer &#34;option value for the future,&#34; while its financial technology segment is starting to improve its profitability.</p><p>Earlier this month, Sea Ltd. (SE) shares surged after the Singapore tech giant reported fourth-quarter results that blew past Wall Street expectations, led by strength in its e-commerce unit.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1151963221","content_text":"Sea Limited (NYSE:SE) shares jumped nearly 6% in morning trading as investment firm Bernstein raised its earnings estimates \"materially\" on the Singapore tech giant, due in part to continued e-commerce gains.Analyst Venugopal Garre nowexpects the company to generate $11.56B in revenue and $9M in net income, up from a previous view of $9.92B and a loss of $1.95B, respectively. He also tweaked estimates for 2024 as well.\"E-commerce is the core engine now, with Sea Ltd demonstrating that a low [average order value] business in an emerging market setting can be profitable,\" Garre wrote in an investor note, pointing to the increase in third-party take rate to 10.3%, which is expected to rise to 11.5% by the end of the year.\"Given the increasing efficiency of take rates which are delivering more profitability as against mere cost offsets earlier, gross profit margins should continue to inch up,\" Garre added.Concerning the company's gaming initiatives, Garre expects that to \"scale down\" but potentially offer \"option value for the future,\" while its financial technology segment is starting to improve its profitability.Earlier this month, Sea Ltd. (SE) shares surged after the Singapore tech giant reported fourth-quarter results that blew past Wall Street expectations, led by strength in its e-commerce unit.","news_type":1,"symbols_score_info":{"SE":0.9}},"isVote":1,"tweetType":1,"viewCount":1826,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9949335262,"gmtCreate":1678353751256,"gmtModify":1678353755238,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"Good 👍🏻&nbsp;","listText":"Good 👍🏻&nbsp;","text":"Good 👍🏻","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9949335262","repostId":"1190963246","repostType":2,"repost":{"id":"1190963246","kind":"news","pubTimestamp":1678334339,"share":"https://ttm.financial/m/news/1190963246?lang=en_US&edition=fundamental","pubTime":"2023-03-09 11:58","market":"sg","language":"en","title":"Sea Limited Just Pulled Off a Minor Miracle: Time to Buy?","url":"https://stock-news.laohu8.com/highlight/detail?id=1190963246","media":"Motley Fool","summary":"Sea Limited posted a surprise net profit in the fourth quarter, a shocking turnaround from a year ago.","content":"<div>\n<p>KEY POINTSSea was surprisingly profitable in the fourth quarter.Even more surprising, it was profitable across each of its three segments.Sustainably profitable growth could enable Sea's stock to ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/03/08/sea-limited-just-pulled-off-a-minor-miracle-time-t/\">Source Link</a>\n\n</div>\n","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited Just Pulled Off a Minor Miracle: Time to Buy?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited Just Pulled Off a Minor Miracle: Time to Buy?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-03-09 11:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/03/08/sea-limited-just-pulled-off-a-minor-miracle-time-t/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSSea was surprisingly profitable in the fourth quarter.Even more surprising, it was profitable across each of its three segments.Sustainably profitable growth could enable Sea's stock to ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/03/08/sea-limited-just-pulled-off-a-minor-miracle-time-t/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://www.fool.com/investing/2023/03/08/sea-limited-just-pulled-off-a-minor-miracle-time-t/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190963246","content_text":"KEY POINTSSea was surprisingly profitable in the fourth quarter.Even more surprising, it was profitable across each of its three segments.Sustainably profitable growth could enable Sea's stock to continue rising, even after this year's big gains.Southeast Asia's video game, e-commerce, and digital finance platform Sea Limited was perhaps the poster child for the pandemic. With the underpenetration of e-commerce and digitization in the region heading into the pandemic, Sea's growth absolutely exploded in 2020 and 2021, sending shares as high as $372 in late 2021.Yet a violent reversal of pandemic trends and high inflation decimated pandemic winners, and Sea's stock plummeted almost 90% to a low of $40.66 last year.In response to the changing landscape, Sea's management also reversed strategies, from a focus on top-line growth to an extreme focus on profitability. On the company's recent fourth-quarter release, that change of strategy yielded remarkable results -- a highly encouraging development for shareholders.Now profitable across all three segmentsPrior to last year, Sea only had one profitable business: its Garena video game segment. In the pandemic and pre-pandemic years, Sea used those profits to fund the build-out of its Shopee e-commerce platform and its SeaMoney digital financial services platform. Both of those businesses took lots of capital to build, and each of those segments regularly inked eye-popping losses in the hundreds of millions of dollars per quarter.However, in the company's recent fourth-quarter 2022 release, not only did the company report operating profits and free cash flow at the overall company level, but each of those three segments is now profitable in its own right.METRICDIGITAL ENTERTAINMENTE-COMMERCEDIGITAL FINANCIAL SERVICESOTHER SERVICESUNALLOCATED EXPENSESTOTALQ4 2021 revenue (millions)$1,415.0$1,595.1$197.5$14.5N/A$3,222.1Q4 2021 operating profit (millions)$858.8($941.0)($157.6)($59.1)(143.1)(442.1)Q4 2022 revenue (millions)$948.9$2,102.7$380.2$19.8N/A$3,451.6Q4 2022 operating profit (millions)$400.2$109.5$61.8($28.7)($199.9)$342.9DATA SOURCE: SEA LIMITED Q4 EARNINGS RELEASE.As you can see, Sea managed to grow operating profit by $785 million relative to the year-ago quarter, even as it only increased revenue by $229.5 million. And the profit gains are even more shocking when one considers operating profit from the digital entertainment segmentdroppedby $458 million in that time. That means between Shopee and Sea Money, Sea was able to grow profits by over $1.2 billion -- more than revenue grew across those two segments.At the beginning of 2022, Sea had promised Shopee would generate positive adjustedEBITDAbefore headquarters costs by the fourth quarter of this year, but fourth-quarter results far exceeded those goals, generating not just EBITDA, but also operating profit. That's why the stock surged more than 20% on Tuesday, defying the overall market's 1.5% drop that day.But the story gets even betterNot only did operating profits flip to positive territory across each of Sea's main segments, but the company also appears to have been free-cash-flow-positive. While Sea hasn't released its annual report yet and didn't itemize its cash-flow statement in the release, the company did note it generated about $209.8 million in excess cash during the quarter.Sea's cash and equivalents actually declined $401.6 million in the quarter, but that was due to another positive development: Management repurchased some of Sea's 0.25% convertible bonds due in 2026, buying back $817.2 million of bond principal for only $611.3 million -- a 25% discount.That's like borrowing $100 and only paying back $75 -- essentially, getting paid to borrow.Obviously, Sea had the benefit of some very fortunate timing, as it issued the convertible bonds in September 2021, near the very top of the market. In the fourth quarter, Sea bought some of the bonds back at the bottom -- a near-perfect bit of selling high and buying low.While there was certainly some luck behind that, this episode shows that management not only has savvy operational expertise, but also financial markets insight -- an uncommon combination for a tech company.IMAGE SOURCE: GETTY IMAGES.How the company did itWhen asked about the remarkable turn to profitability on the earnings call, CEO Forrest Li said: \"There's a lot of hard work, and we make sacrifices. We exited the markets, we downsized operations, we walked through all these initiatives to decide which is core, which is less core, what we need to prioritize and what we need to deprioritize.\"Looking further under the hood, three main tactics stood out:First, Sea raised prices to sellers on its Shopee marketplace, or its \"take rate,\" and was also helped by increased high-margin advertising revenue. Revenue for Shopee surged 31.8%, with core marketplace revenue outside of first-party sales up an even higher 43.5%. That high revenue growth came even while gross merchandise volume (GMV) actually declined 1%, although GMV rose 7.7% in constant currency.While some may scoff that last quarter's growth came mostly from raising prices, remember, the sign of a good business is that it can raise prices without meaningfully losing customers. Sea seems to fit that description.And even that muted GMV growth was impressive in light of sales and marketing expenses declining a stunning 55% for Shopee and 61% at the overall company level. So, the fact that Shopee could still grow GMV on a constant currency basis while cutting marketing expenses by more than half says something about its brand presence across its core markets.Finally, management also pointed to meaningful logistics cost savings, without going into too much detail. While the company doesn't break out gross profit growth specifically for Shopee, the company did grow overall gross profit 29.5%, much higher than overall revenue growth of 7.1%.Not only did Sea improve logistics costs per package in the quarter, but Li added there is even more room to improve, saying: \"[T]his will remain an important area of focus going forward. ... While we have already seen early results from these efforts, there is still greater room for improvement.\"Growing revenue in spite of cost cuts is what this market wants to seeAll in all, Sea was able to raise prices while cutting logistics and marketing costs, and still maintained GMV growth on a constant currency basis. Moreover, management paid off some debt at a big discount, further lowering risk.This is awfully impressive, and bodes well for Sea's stock -- even after Tuesday's big jump.","news_type":1,"symbols_score_info":{"SE":0.9}},"isVote":1,"tweetType":1,"viewCount":1715,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9949017793,"gmtCreate":1678237797313,"gmtModify":1678237801446,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"👍🏻💐","listText":"👍🏻💐","text":"👍🏻💐","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9949017793","repostId":"1164379039","repostType":4,"isVote":1,"tweetType":1,"viewCount":1968,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9957020763,"gmtCreate":1676791168453,"gmtModify":1676791173217,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"Good.. ageed on this","listText":"Good.. ageed on this","text":"Good.. ageed on this","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9957020763","repostId":"1188995761","repostType":4,"repost":{"id":"1188995761","kind":"news","pubTimestamp":1676771503,"share":"https://ttm.financial/m/news/1188995761?lang=en_US&edition=fundamental","pubTime":"2023-02-19 09:51","market":"us","language":"en","title":"Sea Limited: Best Contrarian Opportunity For The E-Commerce Leader","url":"https://stock-news.laohu8.com/highlight/detail?id=1188995761","media":"Seeking Alpha","summary":"SummaryThe contrarian opportunity comes as investors are not pricing in the full potential for Sea L","content":"<div>\n<p>SummaryThe contrarian opportunity comes as investors are not pricing in the full potential for Sea Limited's e-commerce business, Shopee.Shopee continues to bring solid market share in its core ...</p>\n\n<a href=\"https://seekingalpha.com/article/4579506-sea-limited-best-contrarian-opportunity-for-the-e-commerce-leader\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited: Best Contrarian Opportunity For The E-Commerce Leader</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited: Best Contrarian Opportunity For The E-Commerce Leader\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-02-19 09:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4579506-sea-limited-best-contrarian-opportunity-for-the-e-commerce-leader><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryThe contrarian opportunity comes as investors are not pricing in the full potential for Sea Limited's e-commerce business, Shopee.Shopee continues to bring solid market share in its core ...</p>\n\n<a href=\"https://seekingalpha.com/article/4579506-sea-limited-best-contrarian-opportunity-for-the-e-commerce-leader\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://seekingalpha.com/article/4579506-sea-limited-best-contrarian-opportunity-for-the-e-commerce-leader","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1188995761","content_text":"SummaryThe contrarian opportunity comes as investors are not pricing in the full potential for Sea Limited's e-commerce business, Shopee.Shopee continues to bring solid market share in its core regions as a result of strong value propositions to customers and sellers.Shopee has been gaining market share at the expense of competitors, bringing increasing scale and better unit economics to Shopee.The company has been focused on profitability and long-term sustainability of the business, driving improvements in margins and accelerating its path to profitability.My 1-year target price for Sea Limited is $94.51 based on a sum of the parts valuation model. This implies 41% upside from current levels.Investment thesisWith misunderstanding and uncertainty comes opportunity.I think that Sea Limited's (NYSE: SE) valuation reflects uncertainty. Based on the consensus estimates on Bloomberg, Sea Limited is now trading at 45x FY2024 EBITDA. This is for a company with leading positions in gaming, e-commerce and fintech in the markets that it operates in. This is for a company that is lazer focused on cost cutting and turning EBITDA positive on its e-commerce business. This is for a company that is still expected to grow at a double-digit revenue growth in the medium to longer term.I don't think that investors are pricing in the full potential for Sea Limited's e-commerce business, Shopee. Its e-commerce arm continues to remain the leader in its core markets and has captured top mind share in customers in the region as a result of its strong value proposition to customers. In addition, Shopee's competitors in the region, as analyzed below, are not as competitive as Shopee continues to gain market share in the region.In an earlier deep dive article into Sea Limited, I shared with members of Outperforming the Market about the huge opportunities the three segments of the company (Garena, Shopee and SeaMoney) will bring in the long-term and how the company's beaten down stock has reached a valuation that makes sense for investors to enter today. While addressing the members questions on Sea Limited, I realized that there were many misconceptions and interest in Sea Limited's Shopee. As such, in this article, I aim to share with readers more about the fundamentals of Shopee, how it compares with local competitors in the market and what Shopee's future looks like.I have written earlier Sea Limited articles, where I share my deep dive research into Garenahere, and why Sea Limited's Garena and SeaMoney are valued at zero at current valuations here.Deep dive into e-commerce (Shopee)Brief introduction and history of ShopeeAs shared earlier, Shopee is Sea Limited's e-commerce platform. The history of Shopee is relatively short given that it was first launched in Southeast Asia and Taiwan in 2015. The e-commerce platform then made its way into Brazil in 2019. Subsequently, the company even expanded its Shopee platform to new markets in Latin America like Mexico, Chile and Colombia and to Poland and Spain as well. However, the core Shopee markets today are Southeast Asia and Taiwan, as well as Brazil, as Shopee exited markets which it deemed unprofitable in 2022 to preserve capital as the market conditions started to change. This will be discussed further in a later section in this article.Shopee's business modelShopee was one of the first few e-commerce players in Southeast Asia in the early days of its operating history in 2015 and gradually emerged as a leading player in the region as a result of a strong value add to both customers and sellers.Value proposition for customersThe first value proposition, and a relatively simple one, was that Shopee's approach of gamifying the experience of e-commerce and online shopping brought a social element to the e-commerce platform that others were unable to replicate. By having customers win coupons, play games to win rewards and get rewards for logging in daily, the platform was able to build a strong social element and it became not just a platform to these customers, but also a good experience. As a result of gamifying the experience of shopping online, the company actually managed to bring greater traffic to its platform, increase user engagement and it resulted in more e-commerce sales and larger basket sizes.The second value proposition is equally important as customers are ultimately finding the lowest prices for goods they wish to buy and the best discounts available in the market. As a result of promotional and marketing events like the 12.12 sale, customers can get outsized deals and cashbacks through shopping on Shopee.The third value proposition is that customers, as buyers on the e-commerce platform are protected and the platform is secure. It was very important in the early days of Shopee to demonstrate that it could provide a secure and safe shopping environment for buyers. Especially in the early days when not everything was bought online or not everyone has had the experience of using an e-commerce platform, there was a need to assure buyers that the sellers are legitimate, their goods are as advertised and that there are no frauds or misrepresentation on Shopee. Features on Shopee like seller verification helped to make sure that the sellers on the Shopee platform have been verified and are subject to certain terms and conditions on signing up to be a seller. In addition, Shopee does an automated screen based on the product categories, names and descriptions to identify inappropriate or illegal items and the listings that are deemed to be inappropriate or high risk are removed from the platform until cleared by the teams in Shopee. There are other features like Shopee Guarantee, which holds payments made by buyers until the ordered products have been deemed received by the buyer. This will certainly help reduce settlement risk as buyers can then be assured that their payment will only go through if they receive the items that they have bought. Lastly, if all else fails, Shopee has a decent dispute resolution team that helps to ensure that buyers or sellers can have a proper way to resolve disputes and seek compensation if necessary.The fourth value proposition is a subtle one, but Shopee is centered around mobile devices, and enabled e-commerce shopping to be done on the go. This is pertinent as customers were increasingly moving from the PC to their mobile devices as customers started using their mobile devices for more and more applications.Last but not least, the final value proposition that makes customers like Shopee is the strong payment and logistics infrastructure that enables seamless payment and quick and reliable deliveries. For Shopee payments, as highlighted above, they are protected by Shopee Guarantee, which will ensure that buyers get their items before the payment goes through to sellers. In terms of payment types, there are a wide variety of payment options, including credit cards, bank transfers or mobile wallet services. Most of the transactions on Shopee have been integrated with the Shopee Pay, which is SeaMoney's payment infrastructure, and this is the case for most of its core markets. For Shopee, developing the key logistics infrastructure was key to developing e-commerce in Southeast Asia and Taiwan as these are markets with difficult to access terrain and underdeveloped infrastructure. Shopee works with the largest and most reliable logistics service providers in its respective markets and are usually able to get lower rates and better terms with these logistics service providers as a result of Shopee's large scale of transactions. The buyers and sellers are also able to track the delivery status of their purchased items, which provides added assurance for e-commerce transactions.Value proposition for sellersThe first value proposition for sellers has to be the strong support that Shopee provides sellers. An e-commerce platform is only as good as the variety and quality of its seller base. This is likely why Shopee provides strong support to sellers as it has a large team of staff with local knowledge that provides quick and localized assistance to sellers when necessary.The second value proposition is that Shopee provides sellers with a one-stop solution for selling needs, including an integrated payment system, logistics and fulfillment services. Although Shopee does not require its sellers to use its logistics service providers, most of its sellers choose to use them due to the good pricing and reliable service quality of these providers.Lastly and perhaps most importantly, Shopee has a large and fast-growing user base that sellers can sell to. This is undoubtedly one of the greatest incentives for sellers as they can then have a larger market to sell to and a larger addressable market.Scalability of the marketplace business modelShopee has been hugely successful in scaling up as a marketplace platform for reasons highlighted above. It provided buyers with a reliable, social and fun e-commerce experience while sellers are given strong support as Shopee provides one-stop solutions for sellers. That said, the marketplace business model was the key in ensuring that the business is highly scalable.Another reason for the rapid scaling of Shopee is the social and gamification elements that enabled Shopee to acquire and retain users better, and increase their time spent on the platform.As a result, in 2021, Shopee was the largest e-commerce platform in Southeast Asia and Taiwan, and it is also gaining traction in Brazil.Success in marketing and promotional activitiesShopee started to increase brand awareness through its campaigns each month, like the 11.11 Big Sale and 12.12 Birthday Sale. As a result of the promotional activities on these special days in the month, buyers are likely to flock to Shopee during these special promotional events to get larger discounts and save money on their e-commerce purchases. As a result, they associate these dates with Shopee and large discounts and savings.Success in these marketing and promotional campaigns have led to GMV and market share growth and helped increase the mind share of Shopee in the buyers in its core markets.Monetization opportunitiesAs Shopee continues to grow in scale, with the sticky nature of its users due to its social and gamification features, the company can look to monetize this large Shopee user base. While the company is focused on market share growth and GMV at the moment, as the platform continues to scale, I think that we will see Shopee offer sellers paid advertising services, charge transaction-based fees and charge for more value-added services. These are some ways in which Shopee can continue to monetize the large and engaged user base that it has on the platform.Expansion into new marketsShopee started its operations in Southeast Asia and Taiwan and later, Brazil. In 2021, Shopee looked to expand its success beyond these markets and move to other markets, which included markets in Europe, India, and other markets in Latin America. It was not meant to be for Shopee's international expansion strategy, as I have highlighted in my Sea Limited article, as the company started exiting markets which it deems non-core to preserve capital and Shopee dipped its toes into the India market, a large market with tough competitors inMarch 2021, and with the success of Free Fire in India, saw India as a potential market for its e-commerce business. However, given the ban of Free Fire as highlighted in part 1 of my deep dive series, the company eventually realized that there were high regulatory and government risks in entering the India market. As a result, in March of 2022, the company exited India and given the relatively early stage of the operations in India and the cautious expansion in the country, there was a relatively limited impact to current Shopee business. The impact came from the loss of a large and fast-growing addressable market as a result of exiting from India.Shopee aggressively expanded in Europe as it entered France, Spain and Poland in 2021. However, in March 2022 and June 2022, Shopee exited France and Spain respectively. As the company was in France and Spain for a relatively short period of time, during the preliminary pilot phase of operations in both countries, Shopee decided to be prudent and disciplined in expanding into new markets and only invest resources into a market which it thinks that it can compete meaningfully in the long-term.While Shopee saw strong traction in Brazil based on data fromdata.ai, suggesting that the company is ranked first by average monthly active users in the Shopping category in Brazil, the company tried to replicate its e-commerce strategy in other Latin America markets, which resulted in expanding into Mexico, Chile and Colombia in 2021. In 2022, as a result of increasing global macro uncertainty, Shopee needed to focus its operations on core markets and decided that they will use a cross border model in Mexico, Colombia and Chile, downsizing its operations there to cross border operations.Shopee rationalization efforts (Author generated)In my view, the decision to exit markets in which it has not yet had a deep and strong presence in before the turn of the tides is a good move by management as that enabled the preservation of capital in early 2022 and prevented the company from needing more money to fund expansion into new markets. In particular, the exit from India was a great one in my view as the e-commerce market in India is saturated and highly competitive, with players like Amazon (AMZN), Meesho and Flipkart competing with Shopee. The cash burn needed to make Shopee a success in India would not have been possible given the reduction of liquidity in the later part of 2022 as the capital markets started to feel the jitters of higher interest rates and the potential of a recession. I think that the ability to exit markets to ensure the long-term sustainability of the business and expand into new markets prudently gives me more confidence in the management of Shopee.Shopee operational metricsShopee saw huge growth in 2021 as the pandemic helped to fuel the growth and adoption of e-commerce in Shopee's key markets. With movement restrictions and lockdowns, consumers needed to get goods and shop online. The strong growth fueled by the pandemic is likely to cause a high base effect in 2022 as consumers go back to work and school and are able to buy from brick-and-mortar stores. That said, the trend that the pandemic accelerated will likely stay in the future and the pandemic brought a net positive effect to increase the penetration of e-commerce in Shopee's key markets. As a result, in 2023, we are likely to lap that high base effect and I am of the opinion that Shopee can reaccelerate its growth in core markets and continue to increase penetration in these markets.Shopee operational metrics (Author generated)Shopee competitive landscapeWhile Shopee is a leader in the Southeast Asia and Taiwan markets, there are other players vying for market share in these regions. In particular, Alibaba's (BABA) Lazada has been operating in the region since 2012. Despite its longer operating history and backing from Alibaba, the company continued to trail behind Shopee. In my opinion, this is because of the social and gaming element that Shopee has brought into its platform that brought higher user engagement and thus, it attracts and retains users on the platform better. Also, the marketing and promotional campaigns launched by Shopee seem to have created better mind share in its core markets of Southeast Asia and Taiwan at least, resulting in better performance in sales events and marketing and promotional campaigns. Lastly, the platform that is better able to provide buyers with the best discounts and savings, as well as a better user experience will ultimately have the larger active user base. As a result of efforts by Shopee to protect buyers and large discounts on the platform, Shopee has been able to obtain better mind share from customers and result in better market share in the region. This results in a fly wheel effect as the larger buyer user base attracts more sellers on the Shopee platform, which brings about better deals and more variety on the Shopee platform compared to Lazada.In Lazada's fiscal year of 2021 ending on March 31st, the company reported revenues of $556,000, down more than65%from 2020 when it recorded $1.6 million in revenue. In 1Q21 alone, Shopee recorded revenues of$922 million.Lazada recorded $21 billion in GMV in 2021 while Shopee recorded $63 billion GMV in 2021, implying that as of the full year of 2021, Shopee's e-commerce business seems to be almost three times larger than that of Lazada.This goes to show the strong market share gain that Shopee has been experiencing, at the expense of Lazada, and how Shopee is able to compete and gain share in the competitive landscape.Tokopedia is another company that competes in the e-commerce space, but with a larger focus on Indonesia. Tokopedia merged with Gojek, which resulted in the combined entity being calledGoTo Group. With the large population and fast growth profile of the Indonesia market, the threat of GoTo Group in Indonesia remains relevant. In 2021, GoTo Group recorded 6,264 billion Indonesian Rupiah in revenues, which translates to approximately $401 million in revenues for the year. This compares to the$5.2 billion in revenues that Shopee generated in 2021. As a result, Shopee is almost 13 times larger than GoTo Group's e-commerce operations. The larger scale does bring benefits like economies of scale, better unit economics and attracting more buyers and sellers to the platform. At the end of the day, Shopee needs to continue to ensure that it remains relevant and attractive in Indonesia by continuing to improve user experience and bring innovation that adds value to both buyers and sellers.In its existing markets, as can be seen below, Shopee has a scale advantage as it is significantly larger than that of Lazada's or GoTo's revenues. This implies that Shopee's market share by revenue is at least nine times more than Lazada and Shopee's market share by revenue is almost 13 times more than GoTo Group. The competitive landscape in Shopee's core markets does seem favorable given the large-scale benefits that Shopee can enjoy with its market share in these markets. In addition, Shopee continues to be able to compete meaningfully and gain share in these markets as it looks to break even in the Southeast Asia and Taiwan markets.Major e-commerce companies revenues relative to Shopee (Author generated)The global e-commerce market is becoming very competitive, in my view. The largest e-commerce player, Amazon, continues to look to expand internationally and remains a well-capitalized player with strong branding. Other players in specific markets like MercadoLibre (MELI) in Latin America and Coupang (CPNG) in South Korea are well established players in their own respective markets. As a result, international expansion for Shopee needs to be done prudently in markets in which it can compete and adds strong value to. While I think that Shopee may expand to international markets in the long-term, the near-term goal is still turning profitable, focusing on core markets and ensuring sustainability of the business.ValuationAs highlighted before, Sea Limited is now trading at 45x FY2024 EBITDA. Considering the significant EBITDA expansion to come as a result of a leaner cost structure as a result of its cost optimization initiatives and improving economies of scale as the business grows, I think that we will likely see a very strong period of EBITDA growth in the near-term.To value Sea Limited, I use a sum of the parts model. I assume Garena to be valued at 11x FY2024 P/E, Shopee to be valued at 3x FY 2024 P/S and SeaMoney to be valued at 4x FY2024 P/S.My 1-year target price for Sea Limited is thus $94.51. This implies 41% upside from current levels.ConclusionAs can be seen in the article, Shopee is a leader in e-commerce, a fundamentally growing business and one whose profitability and margin profile is improving as we speak.While I think that there could have been some disappointments with the company pulling out of its non-core markets in which it was doing pilot trials in, I think that we are starting to lap the high base effect we saw in 2022 in the coming year in 2023. In addition, the boost in Shopee being EBITDA positive in Southeast Asia and Taiwan is certainly a boost in confidence for the company's business model. By 2025, management expects that both Shopee and SeaMoney together, will be able to generate sufficient cash to self-fund their own long-term growth.My one-year price target for Sea Limited is thus $94.51. This implies a 41% upside from current levels.","news_type":1,"symbols_score_info":{"SE":0.9}},"isVote":1,"tweetType":1,"viewCount":1724,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9961196111,"gmtCreate":1668869655633,"gmtModify":1676538123143,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"Super","listText":"Super","text":"Super","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9961196111","repostId":"1143890380","repostType":2,"repost":{"id":"1143890380","kind":"news","pubTimestamp":1668822759,"share":"https://ttm.financial/m/news/1143890380?lang=en_US&edition=fundamental","pubTime":"2022-11-19 09:52","market":"us","language":"en","title":"Sea Limited: Profitability May Be Around The Corner","url":"https://stock-news.laohu8.com/highlight/detail?id=1143890380","media":"Seeking Alpha","summary":"SummaryFurther uncertainty for Sea Limited's Garena as its QAU did not stabilize as expected. New ga","content":"<html><head></head><body><h3>Summary</h3><ul><li>Further uncertainty for Sea Limited&#39;s Garena as its QAU did not stabilize as expected. New games were launched in recent months.</li><li>Shopee’s race to profitability has accelerated as shown in the material improvements in unit economics, and they are expected to be profitable by FY23.</li><li>SeaBank&#39;s credit business is growing strongly and its overall credit business is profitable and cash flow positive. Its revenue now makes up 10.4% of its overall revenue.</li><li>Execution has been on point in attaining profitability although that resulted in declining growth in FY22. Management believes growth can reaccelerate once it achieves profitability.</li><li>Sea Limited has sufficient cash reserves to pay off the convertible notes.</li></ul><h3>Investment Thesis</h3><p><a href=\"https://laohu8.com/S/SE\">Sea Limited</a> has come under much scrutiny in the past 2 years as the shift in focus from growth to profitability and macro headwinds have led to a massive growth decline across itsShopee and Garena units. While this is unfortunate, management has executed brilliantly so far to turn the company into an increasingly self-sufficient business in the near term.</p><p>In this article, I attempt to dive deeper into itsQ3 2022 resultand provide an overall analysis of the earnings. Although I’d like to highlight that the management has explicitly stated that growth can reaccelerate after attaining profitability and that they have a sufficient cash reserve to pay off the convertible notes sitting on the balance sheet.</p><h3>Garena<img src=\"https://static.tigerbbs.com/ab8fe0ed7909a98b7fdf0b930bc362df\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/></h3><p>SE 10-Q</p><p><img src=\"https://static.tigerbbs.com/8386bb1c95c3d5300e1fe0f371528199\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/></p><p>SE 10-Q</p><p>Garena’s QAU and QPU continued to decline sequentially, as the management’s anticipation of its user base stabilizing did not materialize. The macro headwinds continue to be a headache, and it seems that there is more uncertainty lying ahead for Garena Free Fire. The key forward is to focus on launching new games, with games such asPrimitive EraandBlack Clover Mobilelaunching recently. While this indicates that management is working hard to reaccelerate Garena’s growth, it is important to recognize that the success of games is not guaranteed, and this is the bigger uncertainty for the business. As a result, this caused its adjusted EBITDA margin to further decline to 32.5% during the quarter.</p><p>Additionally, management states that the expiry of the agreement with Riot Games will have no impact on Garena’s publishing business, and Garena is seeking other top-game developers for their publishing business.</p><p>Shopee<img src=\"https://static.tigerbbs.com/79b7f33be279fa015f52addd35b55d96\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/>SE 10-Q<img src=\"https://static.tigerbbs.com/6aaff49a0ba8c901eadda2b7cf01a391\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/>SE 10-Q</p><p>Shopee’s GMV grew 14% Y/Y and the number of orders grew 18% Y/Y, a continuous decline in the past couple of quarters. This is a result of management pulling back on its sales and marketing (“S&amp;M”) expenses, exiting multiple markets, cutting costs aggressively (such as hiring), and lastly, the lower consumer discretionary spending. This is in contrast to Lazada (NYSE: BABA), as the number oforders declined Y/Yand they are also prioritizing profitability through increased monetization.</p><p>While this does show that consumers continue to spend on Shopee in SEA, its GMV and number of orders are partially contributed by Shopee Brazil. In a tough macro environment, Shopee experienced a 36% Y/Y growth in the number of brands on the platform, indicating that Shopee is an increasingly important partner in growing its online revenue.<img src=\"https://static.tigerbbs.com/7e09e1e030c482f41afaf8695896f9ec\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/>SE 10-Q</p><p>The more important portion is Shopee’s improvement in profitability. Its overall adjusted EBITDA loss per order continues to improve by 23.5% sequentially, and more specifically, Shopee Brazil’s loss per order improved by 27.5% sequentially during the quarter as compared to 6.6% in the last quarter. Moreover, Shopee is expected to attain profitability by FY23 instead of FY25 as previously guided by the management. This goes to show that the management has made great strides in pursuing profitability, which is impressive in my view. Once it attained self-sufficiency, growth can reaccelerate, although, the management is expecting flat or negative growth in certain metrics in the near term.</p><h3>SeaBank</h3><p><i>Note that I will be using “SeaBank” and “SeaMoney” interchangeably.</i></p><p><img src=\"https://static.tigerbbs.com/0f0cb77d6ac22f50a1208eaf075db51c\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/></p><p>SE 10-Q</p><p>SeaMoney’s loan receivables grew 46% from 4Q21 and 110% from 3Q21 to $2.2 billion. These are loans provided to customers whereby SeaMoney generates revenue by charging interest rates, and it has been growing quickly. In myprevious article, I showed that in Sep 2022, SeaBank Indonesia grew its loans and customer deposits by 111% Y/Y and 147% Y/Y, respectively, and the launch of ShopeePay in Brazil. During the earnings call, management stated that the credit business is profitable and cash flow positive, and it will be focusing on growing this business in Southeast Asia (“SEA”) and Brazil.</p><p>Additionally, they have also said to diversify their source of funding for the credit business, which I believe is to seek third-party financing partners to reduce the capital required for the business and at the same time, reduce credit risk. Similar to Bank Jago (IDX: ARTO), SeaBank may utilize the data of its partners to help improve the non-performing loans and scale its lending. Readers who are unaware of SeaBank’s business model can head to mydeep diveinto the company.</p><p><img src=\"https://static.tigerbbs.com/2de194897c03f180f99a0dd2b75bf2d0\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/></p><p>SE 10-Q</p><p><img src=\"https://static.tigerbbs.com/5932cc09aca0134084217800afb30399\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/></p><p>SE 10-Q</p><p><img src=\"https://static.tigerbbs.com/6205c82c79c753720862ed8385dd0e2a\" tg-width=\"1200\" tg-height=\"742\" referrerpolicy=\"no-referrer\"/></p><p>SE 10-Q</p><p>As a result of its growing deposits and loan books, its Q3 2022 revenue grew 147% Y/Y, and it has been increasingly making up a bigger portion of its overall revenue at 10.4% this quarter. Management had also been deliberate in cutting down on S&amp;M expenses and combined with its acceleration revenue growth, its adjusted EBITDA margin has improved massively to -20.7% during the quarter. This is compared to -40% in 2Q22 and -120.3% a year ago.</p><h3>Sufficient Cash Reserves To Pay off Convertible Notes<img src=\"https://static.tigerbbs.com/4ff585449530fce4084e7d1447e077b4\" tg-width=\"1280\" tg-height=\"798\" referrerpolicy=\"no-referrer\"/></h3><p>SE 10-Q</p><p>One of the biggest concerns about Sea Limited for investors is the cash burn rate, as they fear that the company does not have enough sufficient cash reserves to pay off convertible notes maturing in 2026. However, not only did the cash outflow slow in Q3 2022, but the management has also hinted that there are sufficient cash reserves to pay off the convertible notes:</p><blockquote>“We aim to continue to maintain a net cash position, after budgeting for the full retirement in cash of outstanding convertible bonds and assuming no external funding.”</blockquote><h3>Conclusion</h3><p>Overall, this was a pretty decent quarter for Sea Limited, as we could see that they had made huge improvements on the road to profitability, particularly for Shopee. While that comes at a growth trade-off, management has indicated that Shopee can reaccelerate its growth after attaining profitability in FY23, which is pulled forward from FY25 as guided previously.</p><p>Garena&#39;s results continue to be a concern as macro seems to have a longer-than-expected impact on its user base and its profitability as a result has been trending downwards over the past couple of quarters. Management has been working hard on its gaming pipelines, although the uncertainty lies in the successes of these new games and whether they could reaccelerate their growth in the future.</p><p>SeaBank has been growing its top line really quickly and huge improvements were made on the bottom line as well. Furthermore, the overall credit business is profitable and is generating positive cash flow, and has been increasingly making up a larger proportion of its total revenue. I continue to believe that this can be a potential growth driver for Sea Limited.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sea Limited: Profitability May Be Around The Corner</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSea Limited: Profitability May Be Around The Corner\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-19 09:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4559176-sea-limited-profitability-may-be-around-the-corner><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryFurther uncertainty for Sea Limited's Garena as its QAU did not stabilize as expected. New games were launched in recent months.Shopee’s race to profitability has accelerated as shown in the ...</p>\n\n<a href=\"https://seekingalpha.com/article/4559176-sea-limited-profitability-may-be-around-the-corner\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://seekingalpha.com/article/4559176-sea-limited-profitability-may-be-around-the-corner","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1143890380","content_text":"SummaryFurther uncertainty for Sea Limited's Garena as its QAU did not stabilize as expected. New games were launched in recent months.Shopee’s race to profitability has accelerated as shown in the material improvements in unit economics, and they are expected to be profitable by FY23.SeaBank's credit business is growing strongly and its overall credit business is profitable and cash flow positive. Its revenue now makes up 10.4% of its overall revenue.Execution has been on point in attaining profitability although that resulted in declining growth in FY22. Management believes growth can reaccelerate once it achieves profitability.Sea Limited has sufficient cash reserves to pay off the convertible notes.Investment ThesisSea Limited has come under much scrutiny in the past 2 years as the shift in focus from growth to profitability and macro headwinds have led to a massive growth decline across itsShopee and Garena units. While this is unfortunate, management has executed brilliantly so far to turn the company into an increasingly self-sufficient business in the near term.In this article, I attempt to dive deeper into itsQ3 2022 resultand provide an overall analysis of the earnings. Although I’d like to highlight that the management has explicitly stated that growth can reaccelerate after attaining profitability and that they have a sufficient cash reserve to pay off the convertible notes sitting on the balance sheet.GarenaSE 10-QSE 10-QGarena’s QAU and QPU continued to decline sequentially, as the management’s anticipation of its user base stabilizing did not materialize. The macro headwinds continue to be a headache, and it seems that there is more uncertainty lying ahead for Garena Free Fire. The key forward is to focus on launching new games, with games such asPrimitive EraandBlack Clover Mobilelaunching recently. While this indicates that management is working hard to reaccelerate Garena’s growth, it is important to recognize that the success of games is not guaranteed, and this is the bigger uncertainty for the business. As a result, this caused its adjusted EBITDA margin to further decline to 32.5% during the quarter.Additionally, management states that the expiry of the agreement with Riot Games will have no impact on Garena’s publishing business, and Garena is seeking other top-game developers for their publishing business.ShopeeSE 10-QSE 10-QShopee’s GMV grew 14% Y/Y and the number of orders grew 18% Y/Y, a continuous decline in the past couple of quarters. This is a result of management pulling back on its sales and marketing (“S&M”) expenses, exiting multiple markets, cutting costs aggressively (such as hiring), and lastly, the lower consumer discretionary spending. This is in contrast to Lazada (NYSE: BABA), as the number oforders declined Y/Yand they are also prioritizing profitability through increased monetization.While this does show that consumers continue to spend on Shopee in SEA, its GMV and number of orders are partially contributed by Shopee Brazil. In a tough macro environment, Shopee experienced a 36% Y/Y growth in the number of brands on the platform, indicating that Shopee is an increasingly important partner in growing its online revenue.SE 10-QThe more important portion is Shopee’s improvement in profitability. Its overall adjusted EBITDA loss per order continues to improve by 23.5% sequentially, and more specifically, Shopee Brazil’s loss per order improved by 27.5% sequentially during the quarter as compared to 6.6% in the last quarter. Moreover, Shopee is expected to attain profitability by FY23 instead of FY25 as previously guided by the management. This goes to show that the management has made great strides in pursuing profitability, which is impressive in my view. Once it attained self-sufficiency, growth can reaccelerate, although, the management is expecting flat or negative growth in certain metrics in the near term.SeaBankNote that I will be using “SeaBank” and “SeaMoney” interchangeably.SE 10-QSeaMoney’s loan receivables grew 46% from 4Q21 and 110% from 3Q21 to $2.2 billion. These are loans provided to customers whereby SeaMoney generates revenue by charging interest rates, and it has been growing quickly. In myprevious article, I showed that in Sep 2022, SeaBank Indonesia grew its loans and customer deposits by 111% Y/Y and 147% Y/Y, respectively, and the launch of ShopeePay in Brazil. During the earnings call, management stated that the credit business is profitable and cash flow positive, and it will be focusing on growing this business in Southeast Asia (“SEA”) and Brazil.Additionally, they have also said to diversify their source of funding for the credit business, which I believe is to seek third-party financing partners to reduce the capital required for the business and at the same time, reduce credit risk. Similar to Bank Jago (IDX: ARTO), SeaBank may utilize the data of its partners to help improve the non-performing loans and scale its lending. Readers who are unaware of SeaBank’s business model can head to mydeep diveinto the company.SE 10-QSE 10-QSE 10-QAs a result of its growing deposits and loan books, its Q3 2022 revenue grew 147% Y/Y, and it has been increasingly making up a bigger portion of its overall revenue at 10.4% this quarter. Management had also been deliberate in cutting down on S&M expenses and combined with its acceleration revenue growth, its adjusted EBITDA margin has improved massively to -20.7% during the quarter. This is compared to -40% in 2Q22 and -120.3% a year ago.Sufficient Cash Reserves To Pay off Convertible NotesSE 10-QOne of the biggest concerns about Sea Limited for investors is the cash burn rate, as they fear that the company does not have enough sufficient cash reserves to pay off convertible notes maturing in 2026. However, not only did the cash outflow slow in Q3 2022, but the management has also hinted that there are sufficient cash reserves to pay off the convertible notes:“We aim to continue to maintain a net cash position, after budgeting for the full retirement in cash of outstanding convertible bonds and assuming no external funding.”ConclusionOverall, this was a pretty decent quarter for Sea Limited, as we could see that they had made huge improvements on the road to profitability, particularly for Shopee. While that comes at a growth trade-off, management has indicated that Shopee can reaccelerate its growth after attaining profitability in FY23, which is pulled forward from FY25 as guided previously.Garena's results continue to be a concern as macro seems to have a longer-than-expected impact on its user base and its profitability as a result has been trending downwards over the past couple of quarters. Management has been working hard on its gaming pipelines, although the uncertainty lies in the successes of these new games and whether they could reaccelerate their growth in the future.SeaBank has been growing its top line really quickly and huge improvements were made on the bottom line as well. Furthermore, the overall credit business is profitable and is generating positive cash flow, and has been increasingly making up a larger proportion of its total revenue. I continue to believe that this can be a potential growth driver for Sea Limited.","news_type":1,"symbols_score_info":{"SE":0.9}},"isVote":1,"tweetType":1,"viewCount":1733,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9963325105,"gmtCreate":1668601500107,"gmtModify":1676538082864,"author":{"id":"4121169336733782","authorId":"4121169336733782","name":"SaravananR","avatar":"https://community-static.tradeup.com/news/3b6ed52793616cb409f928f330d18f9c","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"4121169336733782","idStr":"4121169336733782"},"themes":[],"title":"","htmlText":"<a href=\"https://ttm.financial/S/SE\">$Sea Ltd(SE)$&nbsp;</a>","listText":"<a href=\"https://ttm.financial/S/SE\">$Sea Ltd(SE)$&nbsp;</a>","text":"$Sea Ltd(SE)$","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9963325105","isVote":1,"tweetType":1,"viewCount":2159,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"defaultTab":"following","isTTM":true}