In Southeast Asia and China, e-commerce is poised to achieve meaningful growth in the future and e-commerce should continue to expand in these regions for the foreseeable future. In a December 2022 report, McKinsey, a well-respected consulting firm, wrote that ecommerce IA positive turning point had been reached in most parts of Southeast Asia. In particular, consumer use of e-commerce platforms in the region boomed from 2016 to 2021. In the wake of the pandemic, e-commerce growth in the region is slowing, but the company claimed that “Southeast Asian [e-commerce] Markets could sustain robust…annual growth of between 15 and 25 percent over the next five years.” As a result, you find Southeast Asia Ecommerce Stocks Buying seems to be an excellent strategy for long-term investors.
Meanwhile, in China, the government’s stimulus measures are expected to start significantly, which was positive for the economy and consumer spending in the second half of the year, making shares of strong Chinese e-commerce companies attractive at this time.
These three strong e-commerce stocks to buy have significant exposure to either the Southeast Asian e-commerce market or the China e-commerce market.
| ticker | Pursue | Price |
| CPNG | coupang | $12.91 |
| SE | sea ltd | $75.23 |
| JD | JD.com | $39.34 |
Coupang (CPNG)
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coupang (NYSE:CPNG) is based in East Asian South Korea and continues to derive most of its revenue from that country. However, Coupang has expanded into the East Asian country of Taiwan in recent years, and that country’s e-commerce sector is poised to grow very rapidly in the future.
According to one estimate, Taiwan’s e-commerce sector will grow at a compound annual rate of nearly 10%. in the next five years. Additionally, e-commerce is expected to account for 11.6% of total retail sales in Taiwan in 2026, up from 9.5% in 2022.
Meanwhile, Coupang overall in the fourth quarter Results were very strong Gross profits increased 59% year over year and gross margin increased eight percentage points year over year to an impressive 24%. Bottom line, net income increased $507 million year over year to $102 million, and free cash flow was a very impressive $462 million.
The e-commerce company’s price-to-sales ratio sits at a very low and attractive 1.2x.
(SE)
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Based in Singapore sea (NYSE:SE) owns Shopee, a Southeast Asian Ecommerce Platform. Given the very positive e-commerce trends in the region, it’s not surprising that Shopee delivered strong financial results for Sea last quarter. Specifically, the unit’s gross merchandise value increased 7% year over year, while its EBITDA excluding certain items was $258 million. Sea’s total gross profit increased 33% year over year.
In addition to growing its GMV, Shopee has greatly reduced its costs and monetized more of its platform.
Sea anticipates that longer term, Shopee will be strengthened by economic growth in its Southeast Asian markets as well as increasing e-commerce penetration in those markets.
In the wake of the company’s Q4 results, Bank of America increased its price target on SE shares from $68 to $92. The company believes the company will continue to be profitable going forward and takes Sea’s comments about himself as upbeat. However, after SE stock rallied sharply in the wake of the results, the bank maintained a “neutral” rating on the shares.
JD.com (JD)
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As I pointed out in a previous column, JD.com (NASDAQ:JD), a major Chinese e-commerce player, sought “to target China’s second-tier cities (cities that are less populated than the country’s largest municipalities).” It also invested heavily in its logistics network, cutting its spending and allowing it to generate revenue from other firms that are pay it to use the network.
These initiatives have borne fruit for JD, as free cash flow was an impressive 35.6 billion Chinese yuan, or $5.2 billion, in 2022, up from 26.2 billion Chinese yuan in 2021.
Japanese bank Mizuho expects JD’s revenue growth to accelerate to double-digit percentages in the second half of the year. The company lowered its price target on JD shares to $80 from $85 while maintaining a “buy” rating on the shares.
At the time of publication, Larry Ramer held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
