

You JUMPED LATELY on $AMZN



Here is a #ecommerce and #gaming stock UNDER THE RADAR OF BIG FINANCE


Here is a SHORT & EASY thread

SEA Limited $SE previously known as Garena was founded in 2009 in Singapore 
In 2017, TENCENT
had a 40% stake. Together with the founders, they held 74% of votes 
It started as an online gaming and social platform
that enabled it users to discover and play games

In 2017, TENCENT


It started as an online gaming and social platform

It quickly morphed into a #Gaming (GARENA) #Ecommerce (SHOPEE) and #FinancialServices (AIRPAY) giant and as it IPOed in 2017 
Garena counted 40m MAUs and ranked #1 player in digital entertainment in Greater South East Asia (population of 585m)




In 2017 $SE was a MONSTER IN THE MAKING
What about 2020
?
Let’s review Garena, Shopee and SeaMoney (prev. AirPay)


Let’s review Garena, Shopee and SeaMoney (prev. AirPay)





Garena’s sales are lead by Free Fire, League of Legends and a new entry into mobile games live streaming with Booyah 
Free Fire is self-developed “battle royal” type of game while League of Legend is licensed by Riot games



Launching Booyah is a double win for Garena as it was made with Free Fire in mind. Read from Stefanie Yeo ( http://www.techinasia.com )

“The app was also designed with Garena’s mobile game Free Fire in mind. Players can connect their Free Fire accounts to Booyah, and the app will automatically generate highlight reels when a match is played.”
“The company also deploys its servers as close to its streamers as possible, setting up edge servers in Garena’s key markets to ensure the stable transmission of data. […] These initiatives eliminate lag, which is a universal cause of frustration for gamers and streamers [...]”
Garena is leading the KEY
MOBILE GAMING MARKET
Mobile gaming revenue in SEA reached $ 3B in 2019 a 17% increase YoY
PC and console games in SEA reached $ 1.4B in 2019 a 6% increase YoY
Mobile games are set to reach $ 77B in sales in 2020 up 13% YoY
(from Newzoo)




(from Newzoo)
South East Asia’s
gaming market is consolidated with $SE, PUBG and $SNE leading the pack
Garena is #1 player and strategically placed to grow with its mobile first games
such as Free Fire and Call of Duty Mobile




Let’s have a dive into #Ecommerce with Shopee
Revenue of $ 510m up 188% from $ 177m a year earlier
Operating loss of $ 344m - from a loss of $ 248m a year earlier
EBITDA from Garena is supporting the #Ecommerce expansion



Shopee is loosing cash
but growing fast
Here are the 4 largest markets
Indonesia (pop 261m) - Shopee 93m monthly web visits in Q2 (vs 71m in Q1) - Tokopedia at 83m in Q2 (70m in Q2)
Philippines (pop 101m) - Lazada 30m in Q2 (26m Q1) - Shopee 29m in Q2 (22m in Q1)






Shopee is leaving competitors behind and the spread is widening over time

Who is Lazada
Shopee’s main competitor?
Founded by RocketInternet - the German company behind Zalando
In 2016 $BABA took a controlling interest and replaced the CEO in 2017 with a $BABA executive, Lucy Peng





With $SE, Shopee is well placed to capture a large share of the #Ecommerce market
Ecommerce Sales are set to reach $ 94B by 2024 - up from $ 54B in 2020
Penetration rate stands at 43% in 2020 and is set to reach 60% by 2024 - leaving plenty of untapped growth past 2024



( https://www.statista.com/outlook/243/643/ecommerce/southeast-asia#market-users)
SeaMoney - The fintech arm of $SE is just getting started
Revenue of $ 11.9m up 328% from $ 2.8m a year earlier
Adjusted EBITDA loss of $ 110m from a loss of $ 18.1m a year earlier
Again, EBITDA from Garena is supporting the #Ecommerce expansion











Balance sheet check 
$SE is sitting on a pile of $ 5.2B in current assets and has $ 2.9B in current liab.
Cash position is improving as $SE holds $ 4.1b in cash - coming from $ 3.1b the previous quarter
$SE generated Operating Cash Flows of $ 298m in Q2 ’20






























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Here is a review for $SE - would love to hear your take the matter 
@MadsC007
@james_carter89
@JonahLupton
@LiviamCapital
@kghufran
@trevmuchedzi
@dhaval_kotecha

@MadsC007
@james_carter89
@JonahLupton
@LiviamCapital
@kghufran
@trevmuchedzi
@dhaval_kotecha
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Mordor Intelligence
Sources
✑ Investor presentation
✑ Company website
✑ Mordor Intelligence
✑ Newzoo
✑ AndroidRank
✑ TechInAsia
✑ http://iPrice.co.id
✑ DashDevs
✑ KPMG
✑ The Abstract Investor on Seeking Alpha
✑ AndroidRank
✑ TechInAsia
✑ http://iPrice.co.id
✑ DashDevs
✑ KPMG
✑ The Abstract Investor on Seeking Alpha