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1/21
This thread will be about Southeast Asia and Sea Ltd $SE.
I will focus on 2/3 of Sea Ltd's main "arms" which is e-commerce and digital-ent (gaming)
I'm LONG $SE
This thread will be about Southeast Asia and Sea Ltd $SE.
I will focus on 2/3 of Sea Ltd's main "arms" which is e-commerce and digital-ent (gaming)
I'm LONG $SE
2/21
S.E.A Economy:
With strong demographic of 570m population (8% of world population) and GDP expected to reach $4.7tr by 2025, based on a 2019 study by Google and Temasek. S.E.A is one of the fastest growing and biggest regions of the world.
S.E.A Economy:
With strong demographic of 570m population (8% of world population) and GDP expected to reach $4.7tr by 2025, based on a 2019 study by Google and Temasek. S.E.A is one of the fastest growing and biggest regions of the world.
3/21
A trend of higher tech adoption is taking place in the region such as smartphome penetration and easier access to cheap and relible high-speed internet connectivity have helped to digitally transform and create new consumer categories such as e-commerce, esport and...
A trend of higher tech adoption is taking place in the region such as smartphome penetration and easier access to cheap and relible high-speed internet connectivity have helped to digitally transform and create new consumer categories such as e-commerce, esport and...
4/21
...digital financial services. These would drive http://S.E.As internet economy growth $300bn in 2025. Indonesia will have the highest potential according to the same 2019 study.
...digital financial services. These would drive http://S.E.As internet economy growth $300bn in 2025. Indonesia will have the highest potential according to the same 2019 study.
5/21
High Growth Gaming Market:
S.E.A total gaming market revenue is expected to grow to $8.3bn in 2023 from $5.1bn 2019. This translates to a CAGR of 13%. This would mean that the growth would be among the highest in the world according to Niko Partners.
High Growth Gaming Market:
S.E.A total gaming market revenue is expected to grow to $8.3bn in 2023 from $5.1bn 2019. This translates to a CAGR of 13%. This would mean that the growth would be among the highest in the world according to Niko Partners.
6/21
They also expect that the amount of PC gamers will grow from 154.3m in 2019 to 186.8m in 2023, 4.9% CAGR. Mobile gamers will expand from 227m to 290m over the same period, 6.3% CAGR.
The total gaming growth will mostly be driven by Mobile Gaming that has a...
They also expect that the amount of PC gamers will grow from 154.3m in 2019 to 186.8m in 2023, 4.9% CAGR. Mobile gamers will expand from 227m to 290m over the same period, 6.3% CAGR.
The total gaming growth will mostly be driven by Mobile Gaming that has a...
7/21
...15.8% CAGR comapred to PC Gaming with 9.4% CAGR over the same period (2019-2023). Internet penetration is expected to be around 99% by 2023 compared to 77% 2019 and about 40% of all smartphone users to play mobile games.
...15.8% CAGR comapred to PC Gaming with 9.4% CAGR over the same period (2019-2023). Internet penetration is expected to be around 99% by 2023 compared to 77% 2019 and about 40% of all smartphone users to play mobile games.
8/21
Some S.E.A countries have begun to build 5G infrastructure and will se a rollout in the near future. This together with accessible internet connectivity and increasing smartphone ownership, will be tailwinds for the expanding gaming market.
Some S.E.A countries have begun to build 5G infrastructure and will se a rollout in the near future. This together with accessible internet connectivity and increasing smartphone ownership, will be tailwinds for the expanding gaming market.
9/21
S.E.A is a mobile first region:
The gaming device of choice is different in S.E.A compared to the west. PCs are not very common among S.E.A housholds as the region was late adopters of the internet according to a report by Google.
S.E.A is a mobile first region:
The gaming device of choice is different in S.E.A compared to the west. PCs are not very common among S.E.A housholds as the region was late adopters of the internet according to a report by Google.
10/21
Most of the countries in the region are still developing economies and have lower available income for "non-discretionary" spending which also one reason to low PC/console ownership. This makes the high-end gaming PCs look rather unattractive since it remains...
Most of the countries in the region are still developing economies and have lower available income for "non-discretionary" spending which also one reason to low PC/console ownership. This makes the high-end gaming PCs look rather unattractive since it remains...
11/21
...unaffordable for the majority of the population. On the otherhand it makes smartphones the device of choice mostly because of the rising affordability.
According to Euromonitor smartphone possesion as a % of households grew from 35.5% 2014 to 64.7% in 2019.
...unaffordable for the majority of the population. On the otherhand it makes smartphones the device of choice mostly because of the rising affordability.
According to Euromonitor smartphone possesion as a % of households grew from 35.5% 2014 to 64.7% in 2019.
12/21
This is a 29% pts increase. As compared to PC and Concole which saw a 2.2% pts and 1.7% pts increase respectively during the same period. Mobile growth had 14% CAGR during 2014-19, PC and Console had 3.2% and 5.6% CAGR. This demonstrates the mobile dominance and...
This is a 29% pts increase. As compared to PC and Concole which saw a 2.2% pts and 1.7% pts increase respectively during the same period. Mobile growth had 14% CAGR during 2014-19, PC and Console had 3.2% and 5.6% CAGR. This demonstrates the mobile dominance and...
13/21
the tendancy mobile users have to choose their smartphone as their device of choice for gaming.
the tendancy mobile users have to choose their smartphone as their device of choice for gaming.
14/21
E-commerce in S.E.A is destined to grow:
E-commerce has become the largest portion of the total internet economy in S.E.A according to report by Temasek, Google and Bain & Company. Total GMV expanded 7x during 2015-2019 and reached $38.2bn.
E-commerce in S.E.A is destined to grow:
E-commerce has become the largest portion of the total internet economy in S.E.A according to report by Temasek, Google and Bain & Company. Total GMV expanded 7x during 2015-2019 and reached $38.2bn.
15/X
Sea Ltd's GMV is forcasted to grow 4x to reach $153bn by 2025.
Statista expects personal care segment and food to report the fastest growth at 14% CAGR between 2020-2024 to reach $16bn in revenue, followed by fashion, furniture and applience segment.
Sea Ltd's GMV is forcasted to grow 4x to reach $153bn by 2025.
Statista expects personal care segment and food to report the fastest growth at 14% CAGR between 2020-2024 to reach $16bn in revenue, followed by fashion, furniture and applience segment.
16/21
E-commerce platforms like shopee whose product range is concetrated in these categories will benefit from the structural shift/trend.
E-commerce platforms like shopee whose product range is concetrated in these categories will benefit from the structural shift/trend.
17/21
The total e-commerce value in S.E.A grew 43% CAGR 2014-2019 but was still outpaced by the Indonesian growth of 61% CAGR recording $18.8bn during the same period. This is almost 45% of the total e-commerce market in S.E.A 2019. According to ERIA.
The total e-commerce value in S.E.A grew 43% CAGR 2014-2019 but was still outpaced by the Indonesian growth of 61% CAGR recording $18.8bn during the same period. This is almost 45% of the total e-commerce market in S.E.A 2019. According to ERIA.
18/21
S.E.A's e-commerce portion of total retail indicates further upside to current leves of developed economies. The young population is growing fast in the region, 70% are right now under age of 40 and the lack of retail major establishment compared to the more...
S.E.A's e-commerce portion of total retail indicates further upside to current leves of developed economies. The young population is growing fast in the region, 70% are right now under age of 40 and the lack of retail major establishment compared to the more...
19/21
...developed countries and a rising middle class will contribute to high GDP growth according to EDB. CGSCIMB expects a rising internet penetration rate and more investments in internet infrastructure to improve smartphone adoption and further accelerating the growth of...
...developed countries and a rising middle class will contribute to high GDP growth according to EDB. CGSCIMB expects a rising internet penetration rate and more investments in internet infrastructure to improve smartphone adoption and further accelerating the growth of...
20/21
e-commerce.
E-commerce sales as a % of total retail value has increased from 1.2% in 2014 to 6.2% in 2019 based on Euromonitor. However, it is still lagging behind China's 27% and US 17%, signaling big potential for S.E.A e-commerce to catch-up.
e-commerce.
E-commerce sales as a % of total retail value has increased from 1.2% in 2014 to 6.2% in 2019 based on Euromonitor. However, it is still lagging behind China's 27% and US 17%, signaling big potential for S.E.A e-commerce to catch-up.
21/21
Source: Statisa, Temasek, Google, Bain & CO, CGSCIMB, EDB, ERIA, Euromonitor
Source: Statisa, Temasek, Google, Bain & CO, CGSCIMB, EDB, ERIA, Euromonitor
