Chelsey Tam

3 weeks ago | morningstar.com | Chelsey Tam

PDD Holding is the second-largest e-commerce platform in China by gross merchandise volume in 2024, on our estimate. PDD is a social e-commerce platform that encourages users to enjoy lower prices by teaming up to make purchases. Easier sharing of PDD deals with social contacts through Tencent’s social network leads to lower traffic acquisition costs versus peers.

3 weeks ago | morningstar.com | Chelsey Tam

Kerry Logistics Network’s, or KLN’s, international freight forwarding, or IFF, segment accounted for 52% of consolidated segment profit in the first half of 2024. We think it is seeing stabilizing business conditions, with freight rates having started to rise in the fourth quarter of 2023. Demand for international cargo capacity has increased, as shipping vessels took longer routes to avoid Houthi attacks in the Red Sea since then.

1 month ago | morningstar.com | Chelsey Tam

We expect slow growth in Meituan’s customer acquisition, as the platform already boasts over 770 million users—68% of the Chinese internet users as of June 2024. While Meituan continues to deepen user penetration in less developed areas in China, it is also focusing on increasing customer purchase frequency and expanding overseas. In recent quarters, Meituan has replaced its former agency model with direct operations nationwide, aiming to enhance services for merchants in lower-tier markets.

1 month ago | morningstar.com | Chelsey Tam

J&T Express primarily adopts the regional sponsor model for its express delivery business, where the national headquarters formulates strategy and execution plans, while regional sponsors operate sorting centers, line-haul transportation, pickup and delivery. Advantages of this model include quick adaption based on regional sponsors’ local knowledge, low capital expenditure, and rapid market expansion.

1 month ago | morningstar.com | Chelsey Tam

We expect Shopee to be Sea’s main valuation driver for the long term. E-commerce as a percentage of retail sales was only 10% in Southeast Asia in 2023 as per eMarketer, leaving ample room for incumbents and new entrants to expand. We assume Shopee’s gross merchandise volume, or GMV, to grow at 10% CAGR during 2023-28, versus eMarketer’s projection of 8% for Southeast Asia.