Street projections set to be revised up


Investment Thesis:
Offers higher e-commerce revenue growth that any other major player. Sea Ltd (Sea) offers 92% e-commerce revenue CAGR over FY20-22F compared to an average growth of 30% from major players. This stems from 63% CAGR in gross
merchandise value (GMV) by Sea over the same period as more customers embrace e-commerce in South East Asia


Rising cash flows from gaming to support expansion of new businesses. Sea’s revised FY21F guidance of 41%-48% annual growth in the bookings of its gaming business (vs 34-40% earlier) should bring in enough cash to support expansion of new businesses – e-commerce in Latin America and food
delivery in South East Asia.


Fintech business to transform Shopee into a SuperApp. Ewallet business is not just about monetising Shopee’s user base from lending and insurance services but transforming Shopee into a SuperApp in South East Asia.


Potential catalyst: rising weightage of Sea in MSCI Singapore, strong quarterly results