Last night, Sea (Chinese also known as Donghai Group), known as the small Tencent of Southeast Asia, plunged 20% at the opening, the largest intraday decline since its listing in 2017. By the close, it was down 18.39% at $129.17, with a market capitalization of $72 billion.
Sea is a super bull stock, with its share price rising from $10 in 2017 to a maximum of $372. Tencent was also its largest shareholder before, but in early January it announced a 21.3% stake reduction to 18.7% (worth more than $3 billion), and Sea also plunged 11% that day.
The plunge is mainly due to India's ban on its battle royale shooter platform Free Fire. Global Network reported that according to India's "Economic Times" and other media reported on the 14th,The Indian government banned the download of 54 mobile apps, many of which are products of China's major tech companies Tencent, Alibaba and NetEase, on the grounds that they pose a threat to the privacy and security of Indians.Among the 54 apps is Free Fire, which has been downloaded more than 1 billion times in the Google App Store, and App Annie data also shows that in the third quarter of last year, Free Fire was the highest-grossing mobile game in India.
In fact, Sea has fallen more than 40 percent this year and 65 percent since October last year. But for this company, there are more large institutions that have read the bottom.
Nearly tripled the holdings of Hillhouse Capital's secondary market holdings, or 900,000 shares to 1,237,800 shares, corresponding to a market capitalization of $277 million. It became the seventh largest heavy stock.
Among the other 100 billion private equity Jinglin asset holdings, Sea is still the largest heavy stock, and last Q4 also increased its holdings of 270,000 shares to 2.1882 million shares, with a market value of nearly 500 million US dollars. Note: The data has a certain lag, which is the disclosed Q4 data of last year.
From the perspective of revenue composition, Sea has three major businesses: digital entertainment, e-commerce, digital finance, in short, games + e-commerce + payment.
Three major businesses
In e-commerce, Shopee is the largest e-commerce platform in Southeast Asia; in the game, including Tencent's authorization, such as "League of Legends", "Call of Duty", "Glory of the King" and other exclusive agents or priority distribution rights in Southeast Asia, as well as self-developed Free Fire; in terms of payment, Sea money is the leading payment platform in Southeast Asia.
In Q3 2021, Sea's revenue was $2.689 billion, up 121% year-over-year, and its net profit loss was $570 million, up 34% year-over-year.