Sea Ltd SE (former Garena)

[winston]

not vested

SEA (SE US)
Higher Marketplace Commission And Reduction In Subsidies Indicate Better Competition Landscape

We expect SEA’s adjusted EBITDA to continue showing sequential improvement in its upcoming 1Q24 results despite it being a seasonally weaker quarter.

This is due to an improved landscape for e-commerce, as evidenced by the rise in take rates and
subsidy cuts by SEA and its key competitor.

The gaming segment is also expected to do well from a higher average monthly player count.

We raise our target price by 24% to US$78.39 to reflect the better e-commerce industry landscape. Maintain BUY

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Sea posts US$23 million Q1 loss, but investors cheer Shopee’s record revenue

Growth beat expectations, even as costs rose in a competitive market

by Sharanya Pillai

Sea’s Q1 revenue growth beat analyst expectations to rise 22.8 per cent to US$3.7 billion. Of this, US$2.7 billion came from the company’s e-commerce segment.

Garena's revenue fell 15.1 per cent to US$458.1 million. Rise in quarterly paying users, up 29.8 per cent to 48.9 million. But the average number of bookings per user was down at US$0.86, from US$0.94 the year before.

Sea Money: Revenue up 21 per cent to US$499.4 million, while adjusted Ebitda stood at US$148.7 million, up 50.3 per cent.

Source: Business Times

https://www.businesstimes.com.sg/compan ... rd-revenue

[winston]

not vested

E-commerce and gaming company Sea recorded a US$23 million net loss for the first quarter ended Mar 31 – a result investors cheered, though it reversed the company’s year-ago US$87.3 million profit.

Sea’s Q1 revenue growth beat analyst expectations to rise 22.8 per cent to US$3.7 billion.

Of this, US$2.7 billion came from the company’s e-commerce segment, marking a record high in quarterly revenue for its platform Shopee.

On the basis of adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda), Sea’s Q1 bottom line stood at US$401.1 million, surpassing analysts’ US$221.8 million estimate.

Source: Phillips

[winston]

not vested

SEA (SE US)
1Q24: Strong Earnings From All Segments

SEA’s 1Q24 earnings beat market estimate with all segments showing strong earnings and enhanced profit profiles.

Management provided a positive outlook for 2024 during the recent analyst briefing, especially for the e-commerce and digital entertainment segments.

We expect the same and expect earnings to turn positive in 2H24.

Maintain BUY with a target price of US$78.39 with an optimistic outlook for 2024 on the back of
stronger growth from all segments.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

1Q24 adj EBITDA beats consensus by a whopping 67%

1Q24 group adjusted EBITDA of USD401mn (-21% y/y, +216% q/q) was 67% above consensus estimates.

E-commerce adjusted EBITDA loss of USD22m beat consensus estimates of USD128mn loss. Gaming adj EBITDA of USD292mn was ahead of consensus’ USD242m on higher margins while fintech adj EBITDA of USD149mn was inline.

Our current recommendation is BUY with TP of USD 75; Our TP and forecasts are under review.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=19580

[winston]

not vested

Off to a strong start

1Q24 was a beat on both revenue and EBITDA as Shopee delivered +36% yoy GMV growth while Garena returned to positive growth, led by Free Fire.

We think Shopee can return to adj. EBITDA positive in 2Q24F, led by further commission hikes, cost reduction and higher live-commerce unit economics.

Reiterate Add with a higher TP of US$88 on a normalising competitive landscape for the ASEAN e-commerce industry.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... C81E452396

[winston]

not vested

Sea Ltd - Stock Analyst Research
Target Price* 75.00
Recommendation NEUTRAL

Sea Ltd. - Growth Supported by Spending

1Q24 revenue exceeded expectations at 25% of our FY24e forecasts.

The 23% YoY growth was primarily driven by 33%/21% YoY growth in Shopee and SeaMoney.

While a net loss of ~US$24mn fell short of our FY24e forecasts due to continued high S&M spending and US$111mn unrealised equity investment losses.

Garena is seeing positive user trends, with bookings surged by 11% YoY. Quarterly active users/quarterly paying users were also up 21%/30% YoY as gamers finally returning to gameplay.

We anticipate sustained improvements in most gaming-related metrics moving forward and expect double digit YoY growth in user base and bookings for FY24e.

We downgrade to a NEUTRAL rating from ACCUMULATE due to recent share price gains. We raised our FY24 revenue by 4% to account for higher e-commerce and gaming growth.

We raised DCF target price to US$75 (prev. US$70), with an unchanged WACC/growth rate of 7.6%/3%.

Source: Phillips

https://www.poems.com.sg/stock-research/SE/

[winston]

not vested

Sea Unfairly Favored Its Own Delivery Service, Indonesia Says

by Chandra Asmara

Sea’s Shopee, which has four times more monthly active users in Indonesia.

Less than a third of Lazada’s monthly active users were in Indonesia vs. nearly 50% for Shopee as of April 30, based on Sensor Tower data.

Source: Yahoo Finance

https://finance.yahoo.com/news/sea-unfa ... 44573.html

[winston]

not vested

Maybank re-initiates Sea at ‘buy’ with TP of US$90

by Felicia Tan

Source: The Edge

https://www.theedgesingapore.com/capita ... uy-tp-us90

[winston]

not vested

Sea Ltd (SE US)
Firing on multiple cylinders
Re-initiate at BUY, TP of USD90

We re-initiate coverage of Sea with BUY and SOTP-based TP of USD90.

We see SE entering the ‘post post-Covid phase’ from a position of strength (multiple competitive moats, scale advantage and financial muscle) to tap the 15% CAGR in the ASEAN e-commerce and fintech space.

Its gaming business has stabilized and we find management efforts to make Free Fire an evergreen franchise as credible. We estimate Sea’s revenues to expand at 16% CAGR over FY23-26E, while a healthy mix of scale benefits and steady monetization improvement drive our 24% EBITDA CAGR
expectations.

Trading at 0.4x EV/GMV and 3x EV/sales for FY24E, valuations are at 25-30% discount to MELI.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/387329.pdf