Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Sea Ltd Follow-On Offering: Asking Permission From Investors to Burn $4.0bn Per Year

Sea Ltd: Share Price Breaks Down as Free Fire Misfires

Tencent’s Disposal of Sea Shares: A Danger Sign

Sea Ltd: Free Fire Could Run Out of Fire & Shopee’s Weakening Marginal Profitability

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>Singapore-based Internet company, <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>, released its 2Q21 results yesterday, which saw <a target="_blank">revenue increase by 159% YoY and 29% QoQ to $2,280.5m </a>(consensus $2,017.7m). The company’s operating loss narrowed 10.4% YoY and 4.1% QoQ to $334.0m, compared to the consensus operating loss estimate of $331.3m (an OPM of -14.6% compared to OPMs of -42.3%, -25.2%, -22.8% and -19.8% in 2Q20, 3Q20, 4Q20, and 1Q21 respectively).</li>
<li>Accelerated revenue growth in 2Q20 was mainly driven by Sea’s gaming business as the company invested most of the gaming profits in the e-commerce business to accelerate e-commerce growth. However, Free Fire could soon run out of room to grow, resulting in a rapid deceleration of Sea’s overall growth prospects over the next few years.</li>
</ul>


Singapore-based Internet company, Sea Ltd (SE US), released its 2Q21 results yesterday, which saw revenue increase by 159% YoY and 29% QoQ to $2,280.5m (consensus $2,017.7m). The company’s operating loss narrowed 10.4% YoY and 4.1% QoQ to $334.0m, compared to the consensus operating loss estimate of $331.3m (an OPM of -14.6% compared to OPMs of -42.3%, -25.2%, -22.8% and -19.8% in 2Q20, 3Q20, 4Q20, and 1Q21 respectively).
Accelerated revenue growth in 2Q20 was mainly driven by Sea’s gaming business as the company invested most of the gaming profits in the e-commerce business to accelerate e-commerce growth. However, Free Fire could soon run out of room to grow, resulting in a rapid deceleration of Sea’s overall growth prospects over the next few years.


Free Fire Firing on All Cylinders But Shopee Is Deprived of Marginal Profitability Gains