Equity Research Analyst - Long-Short

Raj S, CA, CFA

Equity Bottom-Up

<ul>
<li>Sea Ltd’s current margin pressure is investment-driven, not price-war driven, with logistics expansion and loyalty programs weighing short-term but strengthening long-term platform economics.</li>
<li>Shopee monetization remains intact with scaling ads and stable take-rates, while Gaming and DFS provide stable earnings and growth support, reducing reliance on near-term e-commerce margin recovery.</li>
<li>At ~0.8x forward sales for Shopee, valuation is depressed; normalization toward 2.0x–2.8x supports ~60% base-case and ~90% upside potential.</li>
</ul>


Sea Ltd’s current margin pressure is investment-driven, not price-war driven, with logistics expansion and loyalty programs weighing short-term but strengthening long-term platform economics.
Shopee monetization remains intact with scaling ads and stable take-rates, while Gaming and DFS provide stable earnings and growth support, reducing reliance on near-term e-commerce margin recovery.
At ~0.8x forward sales for Shopee, valuation is depressed; normalization toward 2.0x–2.8x supports ~60% base-case and ~90% upside potential.


Sea Ltd (SE US): Shopee Trading at Trough Valuations

Co-founder of Cube Asia, Cube Asia

Simon Torring

Co-founder of Cube Asia

Defining Social Commerce in Southeast Asia

Cube Asia

We offer granular market data and insights for online retail in Southeast Asia, helping brands and retail companies drive profitable growth. 

Why the Cube?
3 dimensions of granularity to help you get deep into the 1) geographies, 2) categories, and 3) types of data and insights you need for your business.

The Cube is a big-data machine that is continuously listening to public data sources and primary research, and triangulating across thousands of data points using probabilistic modeling to produce an accurate and granular picture of Southeast Asia’s online retail landscape.

Thematic (Sector/Industry)

<ul><li>Indonesia’s Beauty &amp; Personal Care e-commerce category grew 27% year on year in 2025 to roughly 137 trillion IDR across the three platforms Cube tracks inTradewinds: Shopee, TikTok Shop, and Lazada.</li><li>Shopee still holds the largest share, but TikTok Shop has nearly caught up, closing to 47% against Shopee’s 50% in Q1 2026.</li><li>Here is what the data says about the platforms, the brands, and the tactics defining the category.</li></ul>

Indonesia’s Beauty &amp; Personal Care e-commerce category grew 27% year on year in 2025 to roughly 137 trillion IDR across the three platforms Cube tracks inTradewinds: Shopee, TikTok Shop, and Lazada.Shopee still holds the largest share, but TikTok Shop has nearly caught up, closing to 47% against Shopee’s 50% in Q1 2026.Here is what the data says about the platforms, the brands, and the tactics defining the category.

Indonesia Beauty & Personal Care E-Commerce 2026 | Cube

Podcast by CEO, Norges Bank Investment Management, In Good Company with Nicolai Tangen

In Good Company with Nicolai Tangen

Podcast by CEO, Norges Bank Investment Management

The CEO of the largest single investor in the world, Norges Bank Investment Management, interviews leaders of some of the largest companies in the world. You will get to know the leader, their strategy, leadership principles, and much more. Hosted on Acast. See https://www.acast.com/privacy-policy for more information.

<ul><li>Company started 16 years ago in Southeast Asia market</li><li>Operates three businesses: Garena, Shopee, Money</li><li>Transitioned from video game distributor to $100 billion market cap company through mobile Internet revolution and focus on local market sector</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Company started 16 years ago in Southeast Asia marketOperates three businesses: Garena, Shopee, MoneyTransitioned from video game distributor to $100 billion market cap company through mobile Internet revolution and focus on local market sectorThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Sea CEO: Gaming Empire, Southeast Asia Strategy and Humble Leadership

<ul><li>Singapore is the smallest of the six core Southeast Asian e-commercemarkets by GMV, but it tells one of the most strategically interesting stories in the region.</li><li>Unlike Indonesia, Thailand, or the Philippines, where the platform landscape has consolidated sharply around one or two players, Singapore retains a genuinely competitive three-platform dynamic heading into 2026.</li><li>Cube tracks gross merchandise value (GMV) across Shopee, Lazada, and TikTok Shop in Singapore on a monthly basis, covering all major physical goods categories.</li></ul>

Singapore is the smallest of the six core Southeast Asian e-commercemarkets by GMV, but it tells one of the most strategically interesting stories in the region.Unlike Indonesia, Thailand, or the Philippines, where the platform landscape has consolidated sharply around one or two players, Singapore retains a genuinely competitive three-platform dynamic heading into 2026.Cube tracks gross merchandise value (GMV) across Shopee, Lazada, and TikTok Shop in Singapore on a monthly basis, covering all major physical goods categories.

E-commerce in Singapore: Market Data, Platform Breakdown, and What Brands Need to Know in 2026

<ul><li>Running the same skincare brand strategy across Shopee, Lazada, and TikTok Shop in Thailand is one of the most common and costly mistakes in e-commerce.</li><li>Each platform has a distinct competitive landscape, a different split between official brand stores and third-party sellers, and a different category mix.</li><li>Q4 2025 data from Cube’sAstroplatform shows just how different these three channels really are.</li></ul>

Running the same skincare brand strategy across Shopee, Lazada, and TikTok Shop in Thailand is one of the most common and costly mistakes in e-commerce.Each platform has a distinct competitive landscape, a different split between official brand stores and third-party sellers, and a different category mix.Q4 2025 data from Cube’sAstroplatform shows just how different these three channels really are.

Why the Same Skincare Brand Strategy Won’t Work Across Shopee, Lazada, and TikTok Shop in Thailand

Singapore

Sea Limited is a Singapore-based global technology company founded in 2009. It operates three core businesses: digital entertainment through Garena, e-commerce via Shopee, and digital financial services under Monee. The company is headquartered in Singapore.

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Sea Ltd (SE US)

Sea Ltd (SE US): Shopee Trading at Trough Valuations

Sea Ltd's margin pressure is due to investment in logistics and loyalty programs, not price wars. Valuation for Shopee will re-rate as this margin...

Raj S, CA, CFA

Indonesia Beauty & Personal Care E-Commerce 2026 | Cube

Indonesia’s Beauty & Personal Care e-commerce category grew 27% year on year in 2025 to roughly 137 trillion IDR across the three platforms...

Simon Torring

Sea CEO: Gaming Empire, Southeast Asia Strategy and Humble Leadership

C is a company that started in Southeast Asia, expanded globally, operates three successful businesses, including Garena, one of the largest mobile...

In Good Company with Nicolai Tangen

E-commerce in Singapore: Market Data, Platform Breakdown, and What Brands Need to Know in 2026

Singapore is the smallest of the six coreSoutheast Asian e-commercemarkets byGMV, but it tells one of the most strategically interesting stories...

Simon Torring

Why the Same Skincare Brand Strategy Won’t Work Across Shopee, Lazada, and TikTok Shop in Thailand

Running the same skincare brand strategy across Shopee, Lazada, and TikTok Shop in Thailand is one of the most common and costly mistakes in...

Simon Torring

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sea Ltd (SE US): Shopee Trading at Trough Valuations

​Sea Ltd's margin pressure is due to investment in logistics and loyalty programs, not price wars. Valuation for Shopee will re-rate as this margin...

Raj S, CA, CFA

Indonesia Beauty & Personal Care E-Commerce 2026 | Cube

Indonesia’s Beauty & Personal Care e-commerce category grew 27% year on year in 2025 to roughly 137 trillion IDR across the three platforms...

Simon Torring

Sea CEO: Gaming Empire, Southeast Asia Strategy and Humble Leadership

C is a company that started in Southeast Asia, expanded globally, operates three successful businesses, including Garena, one of the largest mobile...

In Good Company with Nicolai Tangen

E-commerce in Singapore: Market Data, Platform Breakdown, and What Brands Need to Know in 2026

Singapore is the smallest of the six coreSoutheast Asian e-commercemarkets byGMV, but it tells one of the most strategically interesting stories...

Simon Torring

Why the Same Skincare Brand Strategy Won’t Work Across Shopee, Lazada, and TikTok Shop in Thailand

Running the same skincare brand strategy across Shopee, Lazada, and TikTok Shop in Thailand is one of the most common and costly mistakes in...

Simon Torring

Sea Ltd's margin pressure is due to investment in logistics and loyalty programs, not price wars. Valuation for Shopee will re-rate as this margin...