Shopee is still leading in the Southeast Asian market share, achieving a gross merchandise value (GMV) of US$47.9 billion in FY2022. This is followed by Lazada, with a GMV of US$20.1 billion.
UOB Kay Hian analysts John Cheong, Jacquelyn Yow Hui Li and Heidi Mo have maintained “buy” on Sea with a target price of US$94.34 ($125.29), highlighting the counter’s share price appreciation of over 15% since it turned profitable for the first time in 4QFY2022 ended December.
In their July 25 report, the analysts note that Shopee’s continued dominance in its established markets and growth in new markets should allow it to continue increasing commission fees as well as expand its logistics structure. As such, the analysts expect margins to improve moving forward.
