SEA

Sea is a leading Southeast Asian internet platform, with strong positions across ecommerce (Shopee), financial services (Monee) and gaming (Garena). Shopee, its ecommerce arm, continues to solidify its leadership position with over 50% market share in Southeast Asia, and is a strong challenger in Brazil. This fast growth in ecommerce has been complemented by meaningful margin improvements. Monee also delivered exceptional growth with revenue up 58% and EBIT margins reaching 29%, as Sea continues to scale its loan book. Sea is serving an extremely underbanked population with a unique ecosystem advantage, given the data and distribution reach provided by its ecommerce arm.

We consider Sea as one of the most competitively advantaged businesses within the EM universe. It possesses the key attributes of a winning business, including leading and improving market positions, exceptional management teams alongside a culture of innovation, as well as being digital businesses on the right side of technological change. Each business has a strong multi-year growth outlook, supported by structural tailwinds, and will generate very attractive returns on invested capital at scale.

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