SE

Sea Shs -A- Sponsored American Deposit Receipt Repr 1 Sh

TMT, Consumer


Presented:03/05/2018
Price:$10.78
Cap:$3.16B
Current Price:$96.83
Cap:$51.20B

Presented

Date03/05/2018
Price$10.78
Market Cap$3.16B
Ent Value$3.18B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S293.32M
Ave Daily Vol998,786
Short IntN/A

Current

Price$96.83
Market Cap$51.20B
Sea Ltd. operates is an Internet and mobile platform company, which provides online gaming services. The company develops an integrated platform consisting of Garena, Shoppee e-commerce, and Airpay. It operates through the following segments Digital Entertainment, e-Commerce, and Digital Financial Services. The Digital Entertainment segment focuses on online games. The e-commerce segment operates a third-party marketplace through the Shopee mobile app and websites that connects buyers and sellers. The Digital Financial Services segment provides a variety of financial services to individuals and businesses, including e-wallet and payment services through the AirPay mobile app and AirPay counter applications on mobile phones or computers. The company was founded by Xiaodong Li, Gang Ye and Jingye Chen on May 8, 2009 and is headquartered in Singapore.

Publicly traded companies mentioned herein: Alibaba Group Holding Ltd (BABA), NetEase Inc (NTES), Sea Ltd (SE), Tencent Holdings Ltd (700 HK)

Highlights

The presenter is long shares of Sea (SE), a Southeast Asian online gaming and e-commerce company. The presenter sees strength in the online gaming segment (Garena), which is being used to fund expansion in the e-commerce segment (Shopee). The presenter thinks a poorly executed IPO and subsequent issues have obscured the fundamental value of the company and its stock. At the current $10 share price, Garena is close to fairly valued, which implies zero value to Shopee, despite meaningful upside and value in the presenter’s view.

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Idea Discussion

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