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Singapore Companies Listed On NYSE: Sea; Grab; PropertyGuru

Flying the national flag in New York.

In our financially connected world, financial exchanges are no longer just marketplaces that serve companies and investors from a specific country or region. For example, the Singapore Exchange (SGX) includes many foreign listed companies such as Yangzijiang (SGX: BS6), Thai Beverage (SGX: Y92) and Hongkong Land (SGX: H78). Similarly, Singapore companies can also list on overseas financial exchanges such as the New York Stock Exchange (NYSE).

The NYSE is an American stock exchange that is also the world’s largest stock exchange by market capitalisation. Top companies around the world such as Alibaba, Berkshire Hathaway, JP Morgan and Visa are all listed on the NYSE.

Besides American (and some Chinese) companies, there is also a small handful of Singapore companies that we can find on the NYSE. In this edition of 4 Stocks This Week, we look at Singapore companies that are currently listed on the NYSE.

Sea Limited (NYSE: SE)

Founded in 2009 in Singapore, Sea Limited (NYSE: SE) is a leading global consumer internet company that owns Shopee, Garena & SeaMoney. Sea was listed on the NYSE in 2017 at an IPO price of US$15.

After its listing, Sea was largely trading sideways for the next 18 months before it started rising in 2019, ending 2019 at US$39.30 (27 December 2019). 2020 and 2021 saw its shares perform at an exceptional level, increasing at one point to a high of US$357.78 (5 November 2021). At that point, Sea was the biggest company in Singapore by market capitalisation, even above DBS. Since then, however, Sea’s share price has declined quite a bit and the company is now trading at US$121.10 (1 April 2022).

On to its performance. Despite its current size (Sea is currently the second-largest company in Singapore by market capitalisation behind only DBS). Sea is pretty much a growth company and is also valued that way.

GAAP revenue for the Group is at US$10.0 billion, up 127.5% year-on-year (YoY) with digital entertainment (Garena) representing about 43% of revenue, e-commerce (Shopee) at 51% of revenue and digital finance services (SeaMoney) at about 4.7%. All of these businesses are still seeing revenue growth of more than 100% YoY.

However, it’s worth noting that among the three major businesses that Sea owns, only digital entertainment (Garena) is seeing a positive EBITDA – an impressive US$2.7 billion, with both e-commerce (Shopee) and digital financial services (SeaMoney) still loss-making businesses – despite their strong revenue growth. Losses for 2021 have, in fact, widened for both these businesses, which is usually a sign that revenue and market share growth is coming at an (increased) cost to the company. Group EBITDA for 2021 is at a negative US$593 million.

Source: Sea

Grab Holdings (NYSE: GRAB)

Many of us use Grab on a weekly, maybe even daily, basis. But the question is, should we then invest in Grab?

Since being listed on the NYSE (via the SPAC route), the market has not been too kind to Grab (NYSE: GRAB). Grab’s share price has tumbled from US$8.75 on its listing day (2 December 2021) to US$3.47 (1 April 2022). Currently, its market capitalisation is at about US$13 billion, a far cry from its implied valuation of about US$40 billion at listing.

Like Sea, Grab is a loss-making business and, by extension, (has to be) positioned as a growth company. Yet, there are concerns from the investment community in its latest FY2021 results announcement.

Gross Merchandise Value (GMV) – this is the total value of merchandise sold over a given period, grew 26% in 4Q2021 as compared to 4Q2020. However, revenue for the quarter declined by 44% to $122 million due to a jump in incentives given to partners and consumers. The result here is that Grab simply lost more money at $1.1 billion for 4Q2021, and $3.5 billion for the year.

As of 31 December 2021, Grab has net cash liquidity of $6.8 billion. It expects to continue growing in 2022 and while most can agree that the company will likely grow its GMV, the question on everyone’s mind would be, at what cost.

Source: Grab

Read Also: 5 Things to Know About Grab’s Listing Via SPAC

PropertyGuru (NYSE: PGRU)

If you have tried buying, selling or renting a property in the past few years in Singapore, chances are that you will have come across PropertyGuru, a leading property portal based in Singapore with a regional presence.

Like Grab, PropertyGuru (NYSE: PGRU) was listed via the SPAC route. And like Grab, its share price has not performed well since being listed. Since it was listed on 18 March 2022, PropertyGuru has seen its share price tumble from US$8.61 to US$6.23 as of 1 April 2022, or a decline of about 26% in less than 2 weeks.

In the SEC filing, we can see that PropertyGuru is currently a loss-making company though it expects to be profit-generating from 2022. It’s worth noting that its current Singapore business, which now makes up more than 50% of group revenue is profit-generating, excluding HQ cost.

The big question for PropertyGuru and its investors (or potential investors) is simply where the company can hit the ambitious revenue and profit targets it has set for itself outside of Singapore. This is something that we will only be able to find out in subsequent result announcements so investors should keep a close look at these targets.

Read Also: 8 Things You Need To Know Before Investing In A SPAC Listing On The Singapore Exchange (SGX)

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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.