ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

SEA Ltd Placement - New Business Needs New Money

Sea Ltd (SE US) - Extending the Runway for a Bigger Plane?

Sea Ltd:  Rising Momentum Among Active Investors Ahead of Index Inclusion

Sea Ltd (SE US) - Gaming the E-Commerce Epiphany

Sea Ltd (SE US) - Gaming Its Way to the Top

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

Equity Bottom-Up

The Monetary Authority of Singapore (MAS) announced last week that it will award a full digital bank license to <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> and to a consortium including <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> and <a href="https://www.smartkarma.com/entities/singapore-telecommunications" target="_blank" data-smartkarma-citation="entities:20:1" rel="noopener">Singtel (ST SP)</a> in a move to liberalize the local banking industry. In this insight, we consider the potential 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> to benefit from this new pillar. 
Like traditional banks, these players will provide retail customers with services such as opening accounts, deposits, as well as issuing debit and credit cards, The difference being that digital banks will not have a physical presence and all banking services will be done online.
The MAS will also grant digital wholesale bank licenses to <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and a consortium including Greenland Financial, Linklogis Hong Kong, and Beijing Cooperative Equity Investment Fund. Digital wholesale banks can serve corporates and small and medium-sized enterprises.
This should be taken positively 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> and <a href="https://www.smartkarma.com/entities/singapore-telecommunications" target="_blank" data-smartkarma-citation="entities:20:1" rel="noopener">Singtel (ST SP)</a> and, signaling a firm move by the former to further build its exposure into the financial space beyond digital payments. It has already been making significant headway with digital payments as a late starter, especially in Indonesia.
SeaMoney and ShopeePay saw positive momentum across Garena and Shopee during 3Q2020, with the total mobile wallet payment volume exceeding US$2.1bn and quarterly paying users surpassing 17.8m. The eventual prospect of selling financial services to Sea Money and Shopee Pay users must make sense as a long-term growth driver. 
No doubt that <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> has caught out short sellers in their droves but for good reason, in that it keeps delivering on growth and is already forging a path to profitability with increasingly positive EBITDA over the past two quarters. This will continue to be a stock to own in 2021, with digital payments and other related financial services becoming increasingly important. 
<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> just announced that it is to raise US$2bn-2.6bn in new funds through a placement of new ADS shares. This will provide the company with further funding to ramp up its digital bank and other digital finance businesses. The company had over US$3.5bn in cash or equivalents at end of 3Q2020, so this only adds to its firepower.

The Monetary Authority of Singapore (MAS) announced last week that it will award a full digital bank license to Sea Ltd (SE US) and to a consortium including Grab (0967655D SP) and Singtel (ST SP) in a move to liberalize the local banking industry. In this insight, we consider the potential for Sea Ltd (SE US) to benefit from this new pillar. 
Like traditional banks, these players will provide retail customers with services such as opening accounts, deposits, as well as issuing debit and credit cards, The difference being that digital banks will not have a physical presence and all banking services will be done online.
The MAS will also grant digital wholesale bank licenses to Alibaba Group (BABA US) and a consortium including Greenland Financial, Linklogis Hong Kong, and Beijing Cooperative Equity Investment Fund. Digital wholesale banks can serve corporates and small and medium-sized enterprises.
This should be taken positively for Sea Ltd (SE US) and Singtel (ST SP) and, signaling a firm move by the former to further build its exposure into the financial space beyond digital payments. It has already been making significant headway with digital payments as a late starter, especially in Indonesia.
SeaMoney and ShopeePay saw positive momentum across Garena and Shopee during 3Q2020, with the total mobile wallet payment volume exceeding US$2.1bn and quarterly paying users surpassing 17.8m. The eventual prospect of selling financial services to Sea Money and Shopee Pay users must make sense as a long-term growth driver. 
No doubt that Sea Ltd (SE US) has caught out short sellers in their droves but for good reason, in that it keeps delivering on growth and is already forging a path to profitability with increasingly positive EBITDA over the past two quarters. This will continue to be a stock to own in 2021, with digital payments and other related financial services becoming increasingly important. 
Sea Ltd (SE US) just announced that it is to raise US$2bn-2.6bn in new funds through a placement of new ADS shares. This will provide the company with further funding to ramp up its digital bank and other digital finance businesses. The company had over US$3.5bn in cash or equivalents at end of 3Q2020, so this only adds to its firepower. 

Sea Ltd (SE US) - Financial Services the Third Pillar?