Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>BZ US: Enterprises’ Recruitment Confidence Shows Slight Recovery in July(+)</li>
<li>3690HK: Meituan and Restaurant Brands Collaborate to Establish Take-out Satellite Stores, Further Penetrating Offline Catering in China.(+)</li>
<li>PDD US/BABA US /SHEIN/SE US: Hundreds of Temu merchants protest at Guangzhou headquarters (-/+/+)</li>
</ul>


BZ US: Enterprises’ Recruitment Confidence Shows Slight Recovery in July(+)
3690HK: Meituan and Restaurant Brands Collaborate to Establish Take-out Satellite Stores, Further Penetrating Offline Catering in China.(+)
PDD US/BABA US /SHEIN/SE US: Hundreds of Temu merchants protest at Guangzhou headquarters (-/+/+)


[Blue Lotus Daily-TMT Update]:BZ US/3690HK/PDD US/BABA US/SE US/JD US/700HK/NTES US/BIDU/MSFT/TCOM

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Sea Limited is a gaming and e-commerce company in Southeast Asia that has experienced fluctuations in its stock price but has strong underlying business performance.</li><li>Founded in 2009 as Garena by CEO Forrest Li, the company rebranded to Sea Ltd in 2017 and gained access to a wide range of games through Tencent's investment in 2010.</li><li>After achieving profitability in 2023, Sea Ltd is now focused on accelerating growth and drawing comparisons to Amazon's early years.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Sea Limited is a gaming and e-commerce company in Southeast Asia that has experienced fluctuations in its stock price but has strong underlying business performance.Founded in 2009 as Garena by CEO Forrest Li, the company rebranded to Sea Ltd in 2017 and gained access to a wide range of games through Tencent's investment in 2010.After achieving profitability in 2023, Sea Ltd is now focused on accelerating growth and drawing comparisons to Amazon's early years.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Looks like <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea (SE US)</a> decided to take a detour back to the land of losses this quarter.</li>
<li>But it's not a massive issue. They've maintained close to 7% QoQ revenue growth, so things should be okay.</li>
<li>Investors likely won't delve into the details further to uncover the substantial costs hidden behind that apparent growth.</li>
</ul>


Looks like Sea (SE US) decided to take a detour back to the land of losses this quarter.
But it's not a massive issue. They've maintained close to 7% QoQ revenue growth, so things should be okay.
Investors likely won't delve into the details further to uncover the substantial costs hidden behind that apparent growth.


Sea Ltd: A Detour Back to the Land of Losses

<ul>
<li>We suspect that the recent strength in <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea (SE US)</a>'s price performance is likely due to short covering, with shorts incentivized to cover after a nearly 38% gain.</li>
<li>As earnings approach, short positions have been increasing since late October, likely anticipating another earnings disappointment from Sea Ltd's Q3 report on November 14, 2023.</li>
<li>Consensus estimates for Sea Ltd are at their lowest since its inception. A modest outperformance could lead to a squeeze in short interest.</li>
</ul>


We suspect that the recent strength in Sea (SE US)'s price performance is likely due to short covering, with shorts incentivized to cover after a nearly 38% gain.
As earnings approach, short positions have been increasing since late October, likely anticipating another earnings disappointment from Sea Ltd's Q3 report on November 14, 2023.
Consensus estimates for Sea Ltd are at their lowest since its inception. A modest outperformance could lead to a squeeze in short interest.


ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> released 4Q2023 and FY2023 results with a full-year net profit but another loss in 4Q but QoQ improvements for e-commerce and digital financial services. </li>
<li>E-Commerce core market growth rates where impressive, with strong growth momentum with Brazil seeing large profitability gains, whilst overall Shopee is gaining share with the additional benefits from greater scale.  </li>
<li>Digital Financial Services saw a significant uptick in its loan book and profitability, whilst management pointed toward 2H2024 profitability for Shopee. Management is pointing towards 2024 being another profitable year. </li>
</ul>



Sea Ltd (SE US) released 4Q2023 and FY2023 results with a full-year net profit but another loss in 4Q but QoQ improvements for e-commerce and digital financial services. 
E-Commerce core market growth rates where impressive, with strong growth momentum with Brazil seeing large profitability gains, whilst overall Shopee is gaining share with the additional benefits from greater scale.  
Digital Financial Services saw a significant uptick in its loan book and profitability, whilst management pointed toward 2H2024 profitability for Shopee. Management is pointing towards 2024 being another profitable year. 


Sea Ltd (SE US) - Scalability Winning Battles

Singapore

Sea Limited offers information technology services. The Company provides online personal computer and mobile digital content, e-commerce, and payment platforms. Sea serves customers worldwide.

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Sea (SE US)

[Blue Lotus Daily-TMT Update]:BZ US/3690HK/PDD US/BABA US/SE US/JD US/700HK/NTES US/BIDU/MSFT/TCOM

Enterprises in the US show slight recovery in recruitment confidence, Meituan and Restaurant Brands collaborate to establish take-out satellite...

Blue Lotus Research Institute

Sea Limited (SE) - Friday, Jan 12, 2024

Sea Limited is a gaming and e-commerce company in Southeast Asia that has experienced fluctuations in its stock price but has strong underlying...

Value Investors Club

Sea Ltd: A Detour Back to the Land of Losses

Sea took a detour back to the land of losses this quarter. But it's not a massive issue. They've maintained close to 7% QoQ growth, investors...

Oshadhi Kumarasiri

Sea Ltd: Potential for a Short Squeeze

We find it unlikely that Sea will return to making losses in Q3, as projected by consensus. While cautious about medium-term projections, we...

Oshadhi Kumarasiri

Sea Ltd (SE US) - Scalability Winning Battles

Sea Limited released 4Q2023 and FY2023 results with a full-year net profit but another loss in 4Q but QoQ improvements for e-commerce and digital...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily-TMT Update]:BZ US/3690HK/PDD US/BABA US/SE US/JD US/700HK/NTES US/BIDU/MSFT/TCOM

​Enterprises in the US show slight recovery in recruitment confidence, Meituan and Restaurant Brands collaborate to establish take-out satellite...

Blue Lotus Research Institute

Sea Limited (SE) - Friday, Jan 12, 2024

Sea Limited is a gaming and e-commerce company in Southeast Asia that has experienced fluctuations in its stock price but has strong underlying...

Value Investors Club

Sea Ltd: A Detour Back to the Land of Losses

​Sea took a detour back to the land of losses this quarter. But it's not a massive issue. They've maintained close to 7% QoQ growth, investors...

Oshadhi Kumarasiri

Sea Ltd: Potential for a Short Squeeze

We find it unlikely that Sea will return to making losses in Q3, as projected by consensus. ​While cautious about medium-term projections, we...

Oshadhi Kumarasiri

Sea Ltd (SE US) - Scalability Winning Battles

Sea Limited released 4Q2023 and FY2023 results with a full-year net profit but another loss in 4Q but QoQ improvements for e-commerce and digital...

Angus Mackintosh

Enterprises in the US show slight recovery in recruitment confidence, Meituan and Restaurant Brands collaborate to establish take-out satellite...

Sea took a detour back to the land of losses this quarter. But it's not a massive issue. They've maintained close to 7% QoQ growth, investors...

We find it unlikely that Sea will return to making losses in Q3, as projected by consensus. While cautious about medium-term projections, we...