New Street Research - Sea ADS (SE) New Street: SE - Initiating with BUY; PT $325; Upside in Indonesia Remain Central to Our Thesis

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New Street Research

Jin Yoon

New Street: SE - Initiating with BUY; PT $325; Upside in Indonesia Remain Central to Our Thesis

What’s New: We are initiating on Sea Limited (SE US) with a BUY rating at a PT of USD 325, which implies 12.6x FY22 EV/Rev. Our positive view is based on: 1) further acceleration in e-commerce penetration in Indonesia outpacing adoption levels in China at similar scale; 2) monetization upside in marketplace take rate – particularly on the potential ad opportunity in Indonesia; and 3) free call option in Latin American markets as Shopee continues to gain significant traction.; 4) mobile wallet adoption trend with the large unbanked population in countries such as Indonesia, Vietnam, and the Philippines.; and 5) resiliency in the gaming business.

Analysts:
Jin Yoon

25/06/2021 6 EN

Underlying

Sea ADS

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US81141R1005 New York Stock Exchange Cayman Islands

Provider

New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
Global healthcare thematic research

We provide debt research on:

Pan European Telecom Services and Cable

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Analysts

Jin Yoon

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