Is SE a good stock to buy? We came across a bullish thesis on Sea Limited on Contrarian Perspectives’s Substack. In this article, we will summarize the bulls’ thesis on SE. Sea Limited’s share was trading at $89.34 as of April 20th. SE’s trailing and forward P/E were 35.45 and 30.03 respectively according to Yahoo Finance.
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Sea Limited, through its subsidiaries, operates as a consumer internet company in Southeast Asia, Latin America, the rest of Asia, and internationally. SE’s fintech arm Monee is emerging as a core growth driver, with its credit business entering a rapid expansion phase following a key inflection point in 2H24. Initially built to support Shopee by improving payment efficiency and reducing cash-on-delivery reliance, Monee has evolved into a broader financial ecosystem focused on consumer credit.
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Its offerings—including SPayLater (BNPL), cash loans, and payment solutions—are increasingly driving higher conversion rates and user engagement across Shopee, while expanding beyond the platform into off-Shopee use cases. Consumer loans now represent over 95% of the portfolio, with off-platform lending growing faster and addressing a significantly larger market opportunity.
Growth is underpinned by a disciplined “land-and-expand” strategy, where users are onboarded via small-ticket BNPL products before graduating to larger, longer-tenure loans. Despite strong loan book growth, risk remains controlled, supported by improved AI-driven underwriting models, with 90-day NPLs stabilizing at ~1.1%.
The convergence of product cycles across geographies, alongside Shopee’s improved profitability, has enabled Monee to accelerate scaling while maintaining balance sheet flexibility. A key catalyst is the rapid rise of off-Shopee SPayLater, driven by integrations with national QR payment systems, unlocking exponential merchant acceptance and positioning it as a viable alternative to credit cards.
Looking ahead, Monee aims to evolve into a “digital life” super app via the standalone ShopeePay platform, integrating payments, credit, and lifestyle services. While still early, this strategy mirrors models like Alipay and positions Monee as a potential marketplace for financial services. Despite funding and macro risks, the business offers significant long-term optionality, with credit, distribution, and ecosystem synergies driving sustained growth.
