Read on TwitterYou 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 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌏" title="Asien-Australien auf dem Globus" aria-label="Emoji: Asien-Australien auf dem Globus">
In 2017, TENCENThttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇨🇳" title="Flagge von China" aria-label="Emoji: Flagge von China"> had a 40% stake. Together with the founders, they held 74% of votes https://abs.twimg.com/emoji/v2/... draggable="false" alt="✋" title="Erhobene Hand" aria-label="Emoji: Erhobene Hand">
It started as an online gaming and social platformhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden"> 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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🕹" title="Joystick" aria-label="Emoji: Joystick"> 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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏋️" title="Person lifting weights" aria-label="Emoji: Person lifting weights"> What about 2020 https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">?
Let’s review Garena, Shopee and SeaMoney (prev. AirPay)https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎞" title="Filmstreifen" aria-label="Emoji: Filmstreifen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🕹" title="Joystick" aria-label="Emoji: Joystick"> 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"> 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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔑" title="Schlüssel" aria-label="Emoji: Schlüssel"> MOBILE GAMING MARKET
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Mobile gaming revenue in SEA reached $ 3B in 2019 a 17% increase YoY
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚖️" title="Waage" aria-label="Emoji: Waage"> PC and console games in SEA reached $ 1.4B in 2019 a 6% increase YoY
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌍" title="Europa-Afrika auf dem Globus" aria-label="Emoji: Europa-Afrika auf dem Globus"> Mobile games are set to reach $ 77B in sales in 2020 up 13% YoY
(from Newzoo)
(from Newzoo)
South East Asia’s https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌏" title="Asien-Australien auf dem Globus" aria-label="Emoji: Asien-Australien auf dem Globus"> gaming market is consolidated with $SE, PUBG and $SNE leading the pack
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📱" title="Mobiltelefon" aria-label="Emoji: Mobiltelefon">Garena is #1 player and strategically placed to grow with its mobile first games https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> such as Free Fire and Call of Duty Mobile
Let’s have a dive into #Ecommerce with Shopee
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Revenue of $ 510m up 188% from $ 177m a year earlier
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> Operating loss of $ 344m - from a loss of $ 248m a year earlier
https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> EBITDA from Garena is supporting the #Ecommerce expansion
Shopee is loosing cash https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> but growing fast https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Here are the 4 largest markets
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇲🇨" title="Flagge von Monaco" aria-label="Emoji: Flagge von Monaco"> Indonesia (pop 261m) - Shopee 93m monthly web visits in Q2 (vs 71m in Q1) - Tokopedia at 83m in Q2 (70m in Q2)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇵🇭" title="Flagge der Philippinen" aria-label="Emoji: Flagge der Philippinen"> 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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏢" title="Bürogebäude" aria-label="Emoji: Bürogebäude"> Shopee’s main competitor?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Founded by RocketInternet - the German company behind Zalando
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> 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
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Ecommerce Sales are set to reach $ 94B by 2024 - up from $ 54B in 2020
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten"> Penetration rate stands at 43% in 2020 and is set to reach 60% by 2024 - leaving plenty of untapped growth past 2024
( #market-users">https://www.statista.com/outlook/243/643/ecommerce/southeast-asia #market-users)">https://www.statista.com/outlook/2...
SeaMoney - The fintech arm of $SE is just getting started
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Revenue of $ 11.9m up 328% from $ 2.8m a year earlier
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> Adjusted EBITDA loss of $ 110m from a loss of $ 18.1m a year earlier
https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Doppeltes Ausrufezeichen" aria-label="Emoji: Doppeltes Ausrufezeichen"> Again, EBITDA from Garena is supporting the #Ecommerce expansion
Balance sheet check https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">$SE is sitting on a pile of $ 5.2B in current assets and has $ 2.9B in current liab.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Cash position is improving as $SE holds $ 4.1b in cash - coming from $ 3.1b the previous quarter
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏅" title="Sportmedaille" aria-label="Emoji: Sportmedaille">$SE generated Operating Cash Flows of $ 298m in Q2 ’20
Hope you liked this thread!
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Here is a review for $SE - would love to hear your take the matter https://abs.twimg.com/emoji/v2/... draggable="false" alt="🗣" title="Silhouette eines sprechenden Kopfes" aria-label="Emoji: Silhouette eines sprechenden Kopfes">
@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"> http://iPrice.co.id
✑ DashDevs
✑ KPMG
✑ The Abstract Investor on Seeking Alpha
✑ AndroidRank
✑ TechInAsia
✑ http://iPrice.co.id"> http://iPrice.co.id
✑ DashDevs
✑ KPMG
✑ The Abstract Investor on Seeking Alpha
