Sea Ltd SE (former Garena)

[winston]

not vesterd

Solid 4Q performance, robust guidance

4Q24 revenue and adj. EBITDA beat expectations.

Outperformance came mainly from Shopee, backed by strong GMV (+24% yoy) and margin growth.

Robust 2025F guidance indicates another year of strong growth ahead, underpinning our FY25F adj. EBITDA growth estimate of c.50% yoy.

Reiterate Add with a higher TP of US$155 as we raise growth assumptions for Shopee and Garena following the strong 4Q print and FY25F guidance.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... fbd00b1dc8

[winston]

not vested

2024: Results Above Expectations; Strong Growth Outlook For 2025

2024 revenue was largely in line with our forecast but net profit of US$444m (+195% yoy) beat our estimates due to lower S&M expenses from easing competition.

SEA expects all segments to record growth in 2025, particularly the digital financial services segment on ore credit penetration and the e-commerce segment as competition stabilises.

Maintain BUY with a 10% higher SOTP-based target price of US$153.11.

Source: UOBKH

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

[winston]

not vested

4Q24 First Cut - beat; strong FY25 growth guidance

Strong momentum sustained in 4Q24…

4Q24 GAAP revenue grew 37% YoY/14% QoQ and was 6% ahead of MIBG and street forecasts.

Adjusted EBITDA rose 4x YoY and 13% QoQ, and was 2% ahead of MIBG/street forecasts.

All the operating segments’ revenue were ahead of expectations except for Garena bookings, which came 5% below street estimates (in line with ours).

Shopee’s GMV increased at a healthy pace of 24% YoY/14 QoQ, 6% ahead of MIBG/street.

Garena’s bookings rose 19% YoY/-2% QoQ.

DFS was the bigger area of positive surprise with revenue up 55% YoY/19% QoQ, beating expectations by 9-14%.

Target: US$125

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/443090.pdf

[winston]

not vested

Sea Limited (SE US)

Recommendation : BUY
Fair Value : USD 164.00

Solid quarter with increasing profitability in 2025

Strong quarter across its 3 segments with solid 2025 guidance

Momentum is gaining in the Brazilian market
Increase fair value (FV) estimate to USD164

Sea Limited (Sea) is a leading global consumer internet company founded in Singapore, operating three core businesses across digital entertainment (Garena), e-commerce (Shopee), as well as digital payments and financial services (SeaMoney).

In 2023, the company guided on a realignment of strategy to increase investments into Shopee and grow its market share; this resulted in a sharp pullback in its stock price amidst expectations that the business may go into losses from time to time.

Since then, however, Sea’s investments are starting to bear fruit, with Shopee increasing take rates and achieving positive adjusted EBITDA in 3Q24 despite the entrance of new (cross-border) competitors.

Sea’s Digital Financial Services (DFS) have also been a dark horse, riding strong growth momentum to displace Garena as the company’s second largest segment by revenue.

With the company’s businesses enjoying strong potential in a growing region, we believe that the management’s repositioning is the right strategy in the long term for sustainable and profitable growth.

Source: OCBC

[winston]

not vested

Firing on multiple cylinders

Raise SoTP to USD174: Top Pick within ASEAN Internet

Following a stellar 4Q24 delivery and strong 2025 guidance, we raise our Adj. EBITDA estimates by 2-3% and lift our SoTP-based TP to USD174 on roll forward of our target multiples to 2026.

We as well raise our target multiple for Ecom & Garena in light of superior growth.

We reiterate our BUY on SE as the company benefits from multiple tailwinds in all segments which could be further boosted by leveraging AI.

While the stock has risen 4x since start of 2024, we see valuations at lower-inline with its peers while growth remains at the higher end, offering attractive valuations.

https://mkefactsettd.maybank-ke.com/PDFS/443492.pdf

[winston]

not vested

Sea Ltd. – Growth momentum continues
PSR Recommendation: NEUTRAL
Status: Upgraded
Target Price: 139

4Q24 revenue was in line with expectations, with its 37% YoY growth primarily driven by strength in Shopee (41% YoY) and SeaMoney (55% YoY).

PATMI missed due to a higher-than-expected investment loss of $0.25bn.

Excluding the investment loss, FY24 revenue/PATMI was at 103%/98% of our FY24 estimates.

Shopee and SeaMoney maintained their strong momentum, fueled by higher take rates in commissions and ads, along with robust loan book growth.

Garena’s metrics remain positive, but the impact on top and bottom-line growth has been less significant than expected.

We upgrade our recommendation from Reduce to Neutral after rolling over the results for another year.

We raise our DCF target price to US$140 (prev. US$100), with an unchanged terminal growth rate of 4% and WACC of 7.6%.

SE has demonstrated strong growth momentum and monetization capabilities in Shopee and SeaMoney, yet we see limited upside to valuations due to recent share price strength.

Source: Phillips

https://www.stocksbnb.com/reports/sea-l ... continues/

[winston]

not vested

Sea Ltd - Stock Analyst Research
Target Price* US$ 140

Sea Ltd. - Further growth ahead

Shopee and SeaMoney maintained their growth momentum, driven by higher take rates in commissions and ads, as well as robust loan book growth.

Shopee loans are good growth opportunities for SE.

Garena has experienced strong 20% YoY in user metrics throughout FY24, with revenue typically lagging. 4Q24 marks its first YoY revenue increase since 2Q22; we believe the decline has bottomed out and expect revenue growth of 9% in FY25.

We upgrade our recommendation from Neutral to Accumulate due to recent share price movement.

We maintain our DCF target price at US$140, with an unchanged terminal
growth rate of 4% and WACC of 7.6%.

SE has demonstrated strong growth momentum and monetization capabilities in Shopee and SeaMoney, and we expect growth in Garena in FY25.

Source: Phillips

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