Scanning Sea Group's results for life rafts

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- Written by Nikita Puri Journalist Hello {NAME} I absolutely used to loathe it when, after school exams, my friends would put their heads together and make efforts to chalk out how many answers they got right. I didn’t do a good job of hiding that feeling either. Here’s a secret: Alone in my room, I did that math on my own and kept the results to myself. I was prepared to languish in my room and suffer in silence till the results actually came out. That’s a choice one can’t always make. Your disappointment isn’t always just yours. This explains why Sea Group’s (SE, NYSE) shares fell by 18% following its first-quarter results of 2023. The firm missed analysts’ profit estimates by over 60%. As always, we have the best person on the job to help you make sense of Sea’s report card - someone whom I promise won’t be resorting to high school post-exam trauma in his incisive analysis. [On to Simon’s piece](. -- Nikita  ---------------------------------------------------------------  THE BIG STORY [Wall Street's sour reaction to Sea's Q1 results: justified or short-sighted?]( Disappointing results at Garena and a mixed picture at Shopee were balanced out by a strong performance at the firm’s SeaMoney division. ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Two giants gain a few more inches: Michael Burry of The Big Short fame has placed a large amount of confidence in Alibaba (BABA, NYSE) and JD.com (JD, NDAQ). They [are reportedly]( the top two holdings under the investor’s Scion Asset Management. Notably, Alibaba’s logistics arm is [looking to raise]( US$2 billion through a Hong Kong IPO early next year. The group’s ecommerce division is also preparing to [make “huge” investments]( in its Taobao shopping app to keep competition from social media platforms in check. One of its competitors, ByteDance’s Douyin, [recently said that]( the gross merchandise value for its ecommerce business surged 80% last year. 2️⃣ A juicy bite keeps the lows away: As part of its push into emerging markets, Apple (AAPL, NDAQ) has [rolled out its online store]( in Vietnam. This comes after the firm opened its first flagship store in India in April. The focus on emerging markets has been paying off. In the company’s most recent earnings call, CEO Tim Cook reported record-breaking sales in countries like Indonesia, Malaysia, Brazil, and the Philippines. That said, even if iPhone sales disappoint, some advise to [buy Apple’s stock anyway]( since the company has robust long-term fundamentals. And now there’s also the anticipated [mixed-reality headphone]( that the firm is expected to launch soon. 3️⃣ 10 cents and more: Tencent (0700, HKG) [beat analyst expectations]( and marked a return to revenue growth in the first quarter of 2023. The Chinese tech titan recorded a 11% increase in revenue. After its first annual revenue decline last year, Tencent should expect smoother sailing ahead, especially because China’s government has eased Covid-19 regulations and lifted the months-long freeze on new gaming licenses. While the Q1 2023 revenue is attributed to the firm’s gaming and online advertising arms, its [fintech and business services]( arms have also reported growth.  2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [130%]( This is how much Grab’s (GRAB, NDAQ) Q1 2023 revenue jumped year on year. The Singapore tech giant attributed the US$525 million revenue to growth across all segments. The company also reduced its adjusted losses for the quarter by 77% year on year, landing at US$66 million. - [25,000]( That is the number of job opportunities Taiwan-based manufacturing giant Foxconn (2354, TW) plans to create through its new plant in the southern state of Telangana, India. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Not so fast, VinFast: People have been talking about the [SPAC]( bubble bursting - or [“SPACsplosion”]( as some creatively call it. The bubble’s been [“about to burst”]( for a few years now. VinFast, the company powered by Vingroup, has sparked the flames again thanks to its record-breaking SPAC deal. VinFast plans to list on the New York Stock Exchange at a [US$27 billion enterprise value]( through a tie-up with SPAC firm Black Spade Acquisition Co. The latter had raised US$169 million in July 2021. Aside from growing its footprint in the US, the electric vehicle (EV) maker is stepping down hard on the accelerator for its [Southeast Asia expansion]( plans. But one has to bear in mind that in 2022, the company recorded a [loss of US$2.1 billion]( on revenue of US$634 million. That said, Pham Nhat Vuong - VinFast’s founder and Vietnam’s richest man - expects the firm to breakeven by the [end of 2024](. Last year the company got a [US$1.2 billion incentive package]( the biggest economic incentive ever from North Carolina, to build a manufacturing facility in the state. But things haven’t been smooth sailing for the carmaker. After rolling out VF8, its first EV model for the US, [the responses VinFast]( has been getting from critics include: “Yikes” and “Return to sender.” That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894