Sea vs. SG Banks: Are You a Growth or Steady Investor?
$Sea Ltd(SE)$ delivered exceptionally strong Q2 results on August 12th, with shares surging 19%.
While profit margins across segments generally declined quarter-over-quarter, robust growth drove profits above expectations—minor weaknesses were overshadowed by overall strength.
Shopee GMV Outperformed Expectations
The most critical metric of its core segment—Shopee GMV—jumped 28% YoY, accelerating by ~7 percentage points from last quarter. Though some Wall Street banks were optimistic pre-earnings (e.g., JPM forecasted 24% growth), actual performance exceeded even bullish estimates. This growth was entirely driven by "healthier" order volume expansion (+32% YoY), while declining average order value dragged marginally.
Combined with strong GMV growth, Shopee’s revenue surged 34% YoY—significantly accelerating QoQ and far surpassing market expectations of 28%.
SeaMoney Accelerated Growth
Revenue from the second-largest segment, fintech, hit $880 million—soaring 79% YoY, likewise accelerating sharply QoQ and beating market estimates.
Garena’s Expected Cooldown Post-Festivity
Following explosive performance last quarter fueled by its Naruto collaboration, Garena’s gaming segment cooled as anticipated. Monthly active users saw near-zero QoQ growth, paying users dropped by 3 million, and payer conversion rates declined.
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Major Singaporean companies including the three local banks reported earnings last week. The three banking giants maintained solid performance, with $DBS(D05.SI)$ hitting a record high above S$50.
Question:
Do you prefer big-swing stocks like Sea, or are you a steady dividend payers?
How do you view Sea’s super growth?
REWARDS
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Then there are the 3 Big Banks - $DBS Group Holdings(D05.SI)$ $ocbc bank(O39.SI)$ & $UOB(U11.SI)$. They are the dependable trio in tailored suits. They show up every quarterly or half yearly with dividends, a firm handshake and a quiet nod that says "We have weathered every storm for a long time."
So do I prefer the big swing or the steady hum?
Let's say that I admire SEA's swagger from a safe distance, like watching fireworks. But my heart? It is sipping kopi with the 3 SG banks, quietly compounding into the future.
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger @TigerClub
@MHh @Universe宇宙 @Wayneqq @ELI_59 @melson @rL
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But bank biz in Spore is limited by economic size and demographics
So Spore will not be that attractive to foreign banks albeit it is a regional financial centre. In any case, most international banks already have a presence here. Loans are a core biz of the 3 Spore banks but net interest margins are compressing. Whilst some growth may be possible in other sectors like wealth mgt, they are not likely to completely offset the lower revenues from interest earnings. Thus growth looks muted and there is no gttee that current dividend yields can be sustained. SEA in contrast has more growth potential, both geographicaly and in the fin tech area.
@uswatun1 @imamf @uswatun1 @Zara @ANGGA
SeaMoney’s 79% YoY revenue surge was another standout, showing fintech is becoming a key growth driver. Garena cooled after its Naruto boost, but that seems like a seasonal dip rather than a lasting weakness.
Overall, Sea is firing on multiple cylinders despite margin pressures. The volatility is worth it for this kind of growth, though I still hold steady dividend payers like DBS for balance. If they can maintain this momentum, Sea could be one of the region’s top growth stories in the coming years.
@Tiger_comments @TigerStars @Tiger_SG
加上GMV的強勁增長，Shopee的收入同比飆升34%，環比大幅加速，遠超市場預期的28%。
I think sea’ super growth is within my expectation. I am a regular user of shopee and I see shopee’s efforts to grow the business through various vouchers and giving of coins for livestreams on top of what the businesses give to attract viewership. However, I do hope these measures are sustainable and customers continue to return for purchases.