SE - Sea Limited: Still Lots Of Upside After Fundamentals Inflected Upwards

2024-03-11 10:34:38 ET

Summary

• Sea Limited's share price could double in the next 18 months as it switches its strategy from profitability to investing in growth.
• The company has resolved competition from TikTok in Southeast Asia, consolidating its position as the largest e-commerce player in the region.
• Sea Limited is undervalued based on its current EV/Sales multiple and has potential for further upside in its digital entertainment and digital financial services segments.

Investment Summary

Sea Limited ( SE ) is an e-commerce company based in Singapore that operates in Southeast Asia. It has three segments: digital entertainment (Garena; $511 million in revenues or 14% of total revenues), e-commerce (Shopee; $2.6 billion in revenues or 73% of total), and digital financial services (SeaMoney; $472 million in revenues or 13% of total)....

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