Presented in detail in our columns a few weeks ago, Sea has seen its valuation quadruple in the space of twelve months. Investors' renewed optimism contrasts with their ongoing mistrust of Chinese heavyweights such as Alibaba, PDD Holdings and JD.com.
The e-commerce segment Shopee - perfectly positioned in the mobile category, which now accounts for three-quarters of advertising budgets in Asia - posted 41% revenue growth in the last quarter compared with the same period last year.
The SeaMoney financial services segment - largely inspired by the model invented by Alibaba - benefited directly from this boom, with revenue growth of 38% in the last quarter. As for the Garena video game segment, it's slowing down, but this development was expected as it is gradually becoming marginal in the Group's business portfolio.
In the wake of the violent fall in technology sector shares in the second half of 2022, Sea and its founder Forrest Li were put on notice to provide investors with guarantees. Mission accomplished in 2023, with not only a return to growth, but also consolidated operating accounts in the black for the first time.
Unsurprisingly, it was on the two adjustment variables of R&D budgets and stock option remuneration that the Group cut back. Notwithstanding the secular winds of change, the reality is that it's hard to know whether this cost-cutting effort will be sustainable, particularly in the face of the Temu, TikTok and other waves.