Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Seek Limited (ASX: SEK) is an Australia-based online employment marketplace company that operates across Latin America and Asia Pacific region.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~28.14% of the total shareholding. Pinnacle Investment Management Group Ltd and Bassat (Andrew Reuven) are holding a maximum stake in the company at ~5.01% and ~3.86%, respectively.

1.4 Key Metrics: The company has improved its efficiency by achieving an EBITDA margin of 45.6% in 1HFY22, compared to 39.5% in 1HFY21. Additionally, during the 1HFY22, the company reported a return on equity of 6.9%, which is higher than the industry median of 6.3%.

Section 2: Financial Highlights

2.1 Results Highlights of 1HFY22 & Market Positioning: The recent 1HFY22 results depicted an EBITDA of AUD 250.6mn, up 83% from AUD 137.1mn in 1HFY21. The company maintained the market position in the competitive environment with SEEK Asia's average placement share of 23% and AU placement share of 34.3%.

Share of AU Placements for the last 12 months (Period Ended 31 December 2021) is Highlighted Below:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 12, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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