Online recruitment business SEK delivered a solid 1H23 result last month while they tightened guidance towards the lower end for the full year. Revenue came in at $627mn a beat to the $617mn consensus but importantly in today’s environment no big miss. A solid result with no surprises which in today’s tough operating environment is a large tick for the management. Their dynamic pricing will be tested through 2023/4 but we remain optimistic in a similar fashion to REA Group i.e. the dominant player in the space has the best pricing leverage. Also, Seek Asia was the standout group in the February result and we see further potential revenue lift across the region.
After showing a clean closet last month we like SEK in line with our positive outlook towards the growth sector, especially as the stock is trading at a 7% discount to its last 5-year average on the EV/EBITDA front.
- MM has already invested in SEK over the last 12 months, we accumulated a position in the stock in September’22 before taking an almost 30% profit at $25.55 in the 1st week of February.
- Following its result we like SEK at this stage of the cycle and it’s always satisfying to see the stock $1.50 below our exit a month ago.
MM is considering buying SEK around the $24 area
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