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15-02-2022, 05:21 PM
(This post was last modified: 15-02-2022, 05:25 PM by Wildreamz.)
India app ban inflames Sea’s top fire
https://www.reuters.com/breakingviews/in...022-02-15/
Quote:Sea might have grounds for appeal: shareholders yesterday approved the company's proposals that would boost founder Forrest Li's voting power to 60%, while reducing Tencent's (http://0700.HK) voting stake from roughly 23% last March to less than 10% by converting its super-voting stock into ordinary shares. Diluting the Chinese titan's control could appease the Indian government.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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22-02-2022, 12:27 PM
(This post was last modified: 22-02-2022, 01:26 PM by CY09.)
I am waiting for the day when Singapore Regulators recommend that Grabfood and Foodpanda lowers their commission. Based on Meituan's declaration in 2021, it charges 18-25%. This is already lower than what our local food delivery companies charge (approx 30%)
To be honest, the chinese companies are doing a wonderful job of ensuring their EBITDA margin are higher than many food delivery companies globally (and are reporting close to zero losses). This despite low commissions charged.
If Singapore government does follows what China does, I feel many of our tech companies will literally collapse, given how inefficient they are and they are operating in an environment where regulators are so much more lenient on them. Currently Shopee is struggling with Lazada's increased aggression as Lazada is now fighting them on price cuts on top of better delivery services. If Lazada does indeed match to Shopee's policy where up to 33% of your purchase prices can be used to offset purchases (Lazada sets this at 5%) by coins collected from activities you do, I think Sea Group should consider closure
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22-02-2022, 01:25 PM
(This post was last modified: 22-02-2022, 01:27 PM by Wildreamz.)
I'm quite sure Singapore e-commerce market is a small % of Sea Group's total GMV by geography:
https://seekingalpha.com/article/4432517...ess-growth
![[Image: hzSXJay.png]](https://i.imgur.com/hzSXJay.png)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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just off the top of my head, generally though SG is more than 3X more profitable than neighbouring ASEAN countries in retail, maybe also a function of higher cost of living
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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Even if true, Singapore GMV is still only approximately 5% of their total GMV. Hard to see how it would significantly move the needle for SEA.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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I have my reservations on SEA but just saying fundamentally GMV is not the same as profitability. So if it is 3% GMV it is probably >10% profit when it is ever normalised, not that it will be larger than Indon market but not insignificant either.
Not ignoring that e-Commerce has to be EBITDA positive first
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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Looks like the tech bubble has finally popped. And those 'left standing' are those with real (as opposed to potential) earning power.
As previously alluded to, the key for SE lies in their ability to invent new hits, or reinvent old hits. How do you even bet on something like this?
Nevertheless, the tech battle in Southeast Asia still has a long way to go, so maybe Shopee will eventually be able to stand on its own and turn a profit.
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