Act Now: 2 Us-listed Stocks Set To Skyrocket

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Introduction: Two Distinct Paths, Once Compelling Investment Theme

In a fast-changing world shaped by digital disruption, global supply chain realignment, and the rise of emerging markets, investors are constantly seeking companies that combine resilience, scalability, and innovation.

Two such companies — Flex Ltd (NASDAQ: FLEX) and Sea Limited (NYSE: SE) — stand out for their contrasting strengths yet complementary appeal.

• Flex, a global leader in advanced manufacturing and supply chain solutions, operates behind the scenes to power many of the world’s leading brands. With a presence in over 30 countries and a sharp focus on critical industries such as cloud, electrification, healthcare, and data centers, Flex is driving operational excellence while unlocking strong free cash flow and profitability.

• Sea Limited, on the other hand, is the face of Southeast Asia’s digital economy. Through its three core platforms — Garena (gaming), Shopee (e-commerce), and Monee (fintech) — Sea is transforming how consumers play, shop, and bank across one of the world’s most exciting growth regions. It has now reached a pivotal inflection point: scaling profitably while maintaining rapid growth.

Despite operating in vastly different sectors and regions, both companies share one trait investors value most: the ability to execute with discipline while capturing long-term structural tailwinds.

This write-up dives deeper into each company’s performance, strategic initiatives, and investment case — and why both deserve a place on your radar.

1. Flex Ltd: A Global Manufacturing Powerhouse Scaling for the Future

Flex Ltd, formerly known as Flextronics, is a mission-critical partner in global manufacturing and supply chain innovation. The company designs, engineers, and delivers advanced manufacturing and logistical solutions for a wide array of industries including healthcare, automotive, cloud, communications, and industrials.

Headquartered in Singapore, Flex operates across ~100 sites in ~30 countries and employs over 140,000 people worldwide, positioning it as one of the largest diversified manufacturing companies globally.

FY2025 Performance Snapshot

The company’s fiscal 2025 (ended 31 March 2025) results revealed a resilient operational performance despite top-line pressure:

• Revenue declined modestly by 2.3% year-on-year to US$25.8 billion

• Operating profit surged 37% year-on-year to US$1.17 billion, reflecting strong execution and cost efficiency

• Profit before tax rose 54% to US$1 billion, underscoring robust core profitability

• While net profit dipped 3.9% to US$838 million, this was primarily due to a one-off tax credit booked in FY2024

• Free cash flow remained strong, increasing 34% year-on-year to US$1.1 billion

Looking ahead, Flex expects FY2026 revenue in the range of US$25 billion to US$26.8 billion, supported by resilient demand and strategic growth initiatives.

FY2026 Guidance: Stability with Upside

Flex has provided FY2026 revenue guidance in the range of US$25.0 billion to US$26.8 billion, indicating expectations of a stable demand environment with potential upside from its growing portfolio in high-value segments like:

• Data centers

• Electrification

• AI-driven hardware

• Advanced medical devices.

Strategic Highlights: Positioned for Structural Growth

A. Critical Infrastructure Expansion (Europe)

Flex’s power solutions division, Anord Mardix, recently:

• Acquired a new manufacturing facility in Poland

• Doubled European power product capacity to 1.2 million sq. ft

• Strengthened its role in the high-growth data centre segment, where global demand is projected to rise at a CAGR of 10–12% through 2028

B. Tariff Resilience

Flex maintains contractual pass-through clauses with key customers, protecting margins amid rising geopolitical trade tensions and supply chain shifts.

C. R&D and Innovation Leadership

Flex recently announced a collaboration with MIT on the “New Manufacturing” initiative, which aims to:

• Drive next-generation manufacturing technologies

• Enhance US manufacturing competitiveness

• Accelerate the adoption of smart factory solutions and AI-driven production processes

This aligns with global reshoring trends and positions Flex as a technology-forward manufacturer, not just a contract assembler.

Why Flex Deserves Investor Attention

• Undervalued vs. Peers: Despite strong free cash flow and profitability, Flex trades at a forward P/E of ~9x — a discount to peers like Jabil and Foxconn

• Strong Balance Sheet: Low net debt and high liquidity give it flexibility for future capex and M&A

• Secular Tailwinds: Demand for electrification, cloud infrastructure, and medical tech are long-term growth drivers

• Shareholder Value: Over US$500M returned via share buybacks in FY2025; continued commitment to capital returns

Bottom Line

Flex may not be flashy, but it's foundational. As an agile global operator with high-quality customers, strong cash flows, and exposure to fast-growing tech-enabled sectors, Flex offers compelling value and strategic upside for long-term investors.

2. Sea Limited: Firing on All Cylinders with Breakout Profitability

Sea Limited is Southeast Asia’s digital powerhouse, operating across three high-growth verticals:

• Garena – Online gaming and digital entertainment

• Shopee – E-commerce across ASEAN and beyond

• Monee – Digital financial services, including lending and payments

The company delivered an impressive performance in 1Q FY2025, showcasing broad-based strength, improving profitability, and accelerating scale across all segments.

Headline Financials: Profitable Growth Across the Board

• Revenue surged 29.6% YoY to US$4.8 billion

• Operating profit soared over 6x to US$456.4 million, reflecting strong operating leverage

• Net profit came in at US$403 million, a sharp reversal from the US$23.7 million net loss a year ago

• Operating cash flow rose 61.6% YoY to US$757 million, highlighting solid cash generation and business efficiency

Segment Highlights: Momentum in Every Engine

A. Garena (Digital Entertainment)

• Quarterly Active Users (QAUs) grew 11.3% YoY to 661.8 million

• Quarterly Paying Users surged 33% YoY to 64.8 million, demonstrating improving monetization

• Flagship title Free Fire remains the world’s most popular mobile game by daily average users and downloads.

B. Shopee (E-commerce)

• Gross Merchandise Value (GMV) rose 21.2% YoY to US$28.6 billion

• Gross orders climbed 19.2% YoY to 3.1 billion

• Monthly active buyers increased 15% YoY, reflecting deeper consumer penetration and platform engagement.

C. Monee (Digital Financial Services)

• Loan principal disbursed in 1Q 2025 grew 75% YoY to US$5.8 billion

• Added 4+ million first-time borrowers in the quarter

• Management expects loan book growth to outpace Shopee’s GMV, underscoring rising demand for embedded financial services.

Why Sea Limited Deserves Your Attention

Sea Limited is no longer just a high-growth tech name — it’s becoming a profitable, high-scale digital ecosystem operator in Southeast Asia and beyond. With three synergistic business pillars in gaming, e-commerce, and digital financial services, Sea is uniquely positioned to capitalise on some of the most powerful secular trends in emerging markets.

Here’s why investors should take notice:

1. Proven Platform with Multi-Engine Growth

Sea’s strength lies in its diversified business model across three high-growth verticals:

• Garena remains a leader in mobile gaming with global reach and monetisation depth. Its flagship title, Free Fire, continues to rank as the world’s most downloaded mobile game.

• Shopee is the top e-commerce platform in Southeast Asia and a serious contender in Brazil, with increasing user engagement and improving margins.

• Monee, its digital financial services arm, is rapidly scaling with strong traction in consumer lending and payments, supporting broader platform stickiness.

This diversified structure reduces reliance on any single business line and opens multiple avenues for revenue and profit expansion.

2. Profitability Is No Longer a Question Mark

Sea’s latest results mark a turning point in its financial profile:

• Delivered US$403 million net profit in 1Q FY2025, reversing a loss of US$23.7 million a year prior

• Operating profit surged more than sixfold to US$456.4 million

• Operating cash flow grew 61.6% YoY to US$757 million

• All three business units contributed positively — a clear sign of operational discipline and scalable economics

This transformation proves Sea can shift from growth-at-all-costs to sustainable profitability, a critical inflection point for long-term investors.

3. Southeast Asia’s Digital Economy Is Just Getting Started

With a population of over 600 million, increasing internet and smartphone penetration, and a rising middle class, Southeast Asia is one of the fastest-growing digital markets globally.

Sea is perfectly positioned to benefit from:

• The digitisation of retail and consumer finance

• Rising online gaming and content consumption

• Underserved financial services markets ripe for disruption

Its strong local knowledge, execution track record, and cross-platform synergy give it an edge over global entrants.

4. Optionality Through Innovation

Sea continues to innovate and adapt. From embedding credit offerings into e-commerce flows to localising gaming content for specific markets, Sea shows an ability to pivot and scale where opportunity lies.

Monee’s goal to grow its loan book faster than Shopee’s GMV shows management's aggressive but thoughtful approach to expanding its fintech footprint.

The Bottom Line

Sea Limited is executing a powerful transition — from a high-growth story to a high-quality, cash-generating platform with long-term optionality. With strong market leadership, improving profitability, and exposure to one of the most dynamic digital regions in the world, Sea deserves a serious look from long-term investors seeking scalable, diversified, and tech-enabled growth.

Happy Investing!!