SE

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

TMT, Consumer


Presented:06/27/2018
Price:$14.82
Cap:$2.70B
Current Price:$96.83
Cap:$51.20B

Presented

Date06/27/2018
Price$14.82
Market Cap$2.70B
Ent Value$3.20B
P/E RatioN/A
Book Value$0.86
Div Yield0%
Shares O/S182.01M
Ave Daily Vol1,635,489
Short IntN/A

Current

Price$96.83
Market Cap$51.20B
Sea Ltd. (Singapore) is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers access to game-related content through game forums, group voice chat, live streaming, and other user socializing functions on the Garena mobile app and desktop application. The E-Commerce segment manages third-party marketplace through the Shopee mobile app and websites that connects buyers and sellers. The Digital Financial Services segment includes 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 Xiao Dong Li, Gang Ye, and Jing Ye Chen in May 2009 and is headquartered in Singapore.

Publicly traded companies mentioned herein: Activision Blizzard Inc (ATVI), Alibaba Group Holding Ltd (BABA), Electronic Arts Inc (EA), NetEase Inc (NTES), Sea Ltd (SE), Tencent Holdings Ltd (700 HK), Walmart Inc (WMT)

Highlights

The presenter is long shares of Sea (SE), seeing strong continued growth in both the online gaming (Garena) and ecommerce (Shopee) segments. By his model, SE’s current market valuation can be entirely supported by just Garena, giving no credit to Shopee or the payments segment. Based on the valuation of peers like Flipkart and Lazada, a properly valued Shopee segment could lead to a doubling or more of SE shares.

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Idea Discussion

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