Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

[Sea (SE US, SELL, TP US$55) Target Price Change]: A Margin-Beat Quarter Followed by a Tough 2023

Sea Ltd: With Sell-Side Optimistic Once Again, Sea Looks Ripe For a Short

Sea Ltd 4Q22 Results: Can Profits Hold When Growth Stall?

Trading Sea Ltd in 2023: It Is Still The Same Beast

Sea & Pinduoduo Are in Dangerous Territory With Tencent in Disposal Mode

Sea Ltd 3Q22 Results - Set up Nicely To Make Big Gains On The Short Side

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.

Equity Bottom-Up

<ul>
<li>We don’t see a way for <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>’s e-commerce business to turn profitable in the next few years.</li>
<li>For the moment, the Digital-Entertainment segment is capable of absorbing most of e-commerce losses, but we are expecting the segment profitability to fall 70% to $135m per-quarter over the-next two-years.</li>
<li>Once that happens, we think it will be game over for Sea Ltd.</li>
</ul>


We don’t see a way for Sea Ltd (SE US)’s e-commerce business to turn profitable in the next few years.
For the moment, the Digital-Entertainment segment is capable of absorbing most of e-commerce losses, but we are expecting the segment profitability to fall 70% to $135m per-quarter over the-next two-years.
Once that happens, we think it will be game over for Sea Ltd.


Sea

Sea Ltd: Game Over