For Sea’s e-commerce segment, Saifee sees a few factors in driving a 15% gross merchandise value (GMV) in Asean. One of these factors is a “healthy” 8% growth in Asean retail sales while e-commerce penetration is just half of that of the US and China’s. Another factor is “rational competition” while the third factor is the limited risk of “disruptive” entrants.
Maybank Securities analyst Hussaini Saifee has re-initiated coverage on Sea Limited with a “buy” call and a sum-of-the-parts (SOTP)-based target price of US$90 ($121.72).
“We see Sea entering the ‘post post-Covid phase’ from a position of strength (multiple competitive moats, scale advantage and financial muscle) to tap the 15% compound annual growth rate (CAGR) in the Asean e-commerce and fintech space,” the analyst writes in his June 18 report.
