Equity Analysis /
Singapore

SG : SEA Ltd - Every cent counts

    Khangchuen Ong
    Khangchuen Ong

    Research Analyst

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    CGS-CIMB
    10 September 2022
    Published byCGS-CIMB

    Shopee scaled back its presence in Latin America; Brazil as a core market remains unaffected. Poland is currently Shopee’s last test market standing. Shopee entered the four Latam test markets back in 2021; we estimate they contribute LSD of Shopee’s GMV. The move could save SE US$40m a year. The move is aligned with SE’s latest focus on prioritising profitability. Maintain Hold as sentiment likely to remain negative near-term on further cost-cutting.