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: Draining the Cash-Cow in Search of E-Commerce and Fintech Growth - Part II

Sea Ltd Valuation: SOTP Suggests Over 40% Downside Risk

Sea Ltd Placement: Draining the Cash-Cow in Search of E-Commerce and Fintech Growth

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

<p>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 4Q20 results yesterday, which saw revenue increase by 102% YoY and 29% QoQ to $1,567m (consensus $1,467m). The company’s operating loss was up 55.4% YoY and 17.0% QoQ to $357.3m, compared to the consensus operating loss estimate of $392.0m. (an OPM of -22.8% compared to OPMs of -29.6%, -37.4%, -42.3% and -25.2% in 4Q19, 1Q20, 2Q20 and 3Q20 respectively)</p><p>Consensus projects Sea’s 2021 operating loss to narrow from $1,303m in 2020 to $791m by 2021. However, with the deteriorating marginal profitability in e-commerce and fintech businesses and the expansion of Phoenix Labs, we believe the company’s losses could expand in 2021.</p>

Singapore based internet company, Sea Ltd (SE US) released its 4Q20 results yesterday, which saw revenue increase by 102% YoY and 29% QoQ to $1,567m (consensus $1,467m). The company’s operating loss was up 55.4% YoY and 17.0% QoQ to $357.3m, compared to the consensus operating loss estimate of $392.0m. (an OPM of -22.8% compared to OPMs of -29.6%, -37.4%, -42.3% and -25.2% in 4Q19, 1Q20, 2Q20 and 3Q20 respectively)Consensus projects Sea’s 2021 operating loss to narrow from $1,303m in 2020 to $791m by 2021. However, with the deteriorating marginal profitability in e-commerce and fintech businesses and the expansion of Phoenix Labs, we believe the company’s losses could expand in 2021.

Sea Ltd: Unlikely to Halve Losses Amidst E-Commerce and Fintech Growth