Sea Ltd SE (former Garena)

[winston]

not vested

Strong start to 2025F; growth could slow

1Q25 adjusted EBITDA beat expectations, thanks to the resurgence of strong earnings for the digital entertainment segment. 2025F guidance maintained.

Digital entertainment segment made a strong comeback, and we expect the segment to continue to perform well in 2025F.

Downgrade to Hold with a higher US$160 TP as we expect slower operating metric growth in coming quarters after the strong growth registered in 1Q25.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 35DA7EB678

[winston]

not vested

Sea Limited (SE US)
Recommendation : BUY
Fair Value : USD 180.00

DELIVERED STRONG PROFITABILITY AHEAD OF EXPECTATIONS

Broadly in-line revenue but a strong profitability beat. Management’s tone on 2025 guidance continues to be confident

Increasing penetration across products in Monee and Garena

We see growth potential in the Brazilian market. Overall, we increase fair value (FV) estimate to USD180 (from USD164)

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

Shopee is the leading platform in Southeast Asia and Taiwan, with a significant presence in Latin America. It generates revenue by offering sellers paid advertising services, charging transaction-based fees, and providing certain value-added services such as logistics.

Additionally, it purchases products from manufacturers and third parties to sell directly to buyers on its platform.

Monee (previously known as SeaMoney) is a prominent player in Southeast Asia with a growing presence in Brazil. It offers consumer and small and medium enterprise (SME) credit, mobile wallet, banking and Insurtech services.

Garena is a global game developer and publisher that provides users with access to popular and engaging mobile and personal computer (PC) games, which it develops, curates, licenses, and localises for each market.

Source: OCBC

[winston]

not vested

Fintech: what is propelling 75% loan book growth?

In 1Q25, Sea Ltd’s (SE) loan book grew by 75% much faster than Grab’s 56% loan book growth.

SE is increasingly deploying its own capital for off-platform loans while seeing more traction besides Indonesia in Thailand and Malaysia.

Maintain BUY on SE with a TP of USD204.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=25587

[winston]

Sea Ltd - Stock Analyst Research
Target Price* 160
Recommendation NEUTRAL

Sea Ltd. - Outperformance likely to continue, but valuations stretched
Recommendation: NEUTRAL (Downgraded) , Last done: US$162.72, TP: US$160,

1Q25 revenue/PATMI were in line with expectations, with its 30% YoY growth primarily driven by strength in Shopee (29% YoY) and Monee (58% YoY).

1Q25 revenue/PATMI was at 23%/25% of our FY25 estimates.

All three segments —Shopee, Monee, and Garena —maintained their strong momentum, fueled by higher take rates in commissions and ads, robust loan book growth, and strong bookings.

We downgrade our recommendation from Accumulate to Neutral due to the recent share price rally.

We raised our FY25 revenue/PATMI by 2%/13% to reflect growth in Monee, Garena, and continued improvements in cost efficiency.

We also raise our terminal growth rate assumption to 4.5% (previously 4%), reflecting the long-term growth potential of Monee as it penetrates the large unbanked population in Southeast Asia.

We have raised our DCF target price to US$160 (previously US$140), with an unchanged WACC of 7.6%. After the significant price rally, we see minimal upside.

Source: Phillips

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

[winston]

not vested

MELI’s competitive ante – Limited risk

MELI’s free shipping targets; Shopee’s mass-market stronghold

Mercado Libre’s (MELI) new free‑shipping campaign in Brazil slashed the minimum order threshold from BRL79 to BRL19 (USD3.40).

Simultaneously, it cut seller shipping fees by up to 40%, with MELI shouldering the cost.

The expanded shipping discount by MELI strategically targets the low-tomid price segment, where Shopee has been gaining strong traction.

Note that, in Brazil Shopee’s AOV is roughly 3x lower than MELI’s.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/464809.pdf

[winston]

not vested

Sea Ltd reported on Tuesday (Aug 12) a 418.3 per cent increase in its second-quarter earnings to US$414.2 million, a jump from the US$79.9 million in the year-ago period.

Revenue for the group grew 38.2 per cent to US$5.3 billion for Q2 2025, from US$3.8 billion in the year before, powered by the performance of its e-commerce and digital financial services arms, respectively, Shopee and Monee.

Source: Phillips

[winston]

not vested

2Q25: Topline grows from strength to strength

2Q25: Beat and raise SE maintained its strong growth momentum in 2Q25, beating expectations across the board.

2Q revenues rose 38% and EBITDA lifted 85% YoY – 2-5% ahead of expectations.

E-commerce GMV rose 28% YoY, the fastest pace since post-Covid normalisation, with momentum expected to stay strong in 3Q, signaling potential upside to Shopee’s 20% 2025 GMV growth guidance.

Management raised Garena booking guidance from double digit growth to now >30% growth in 2025.

We raise our revenue and adj EBITDA estimates by 3-6% and lift our TP by 7% to USD205. SE’s strong tech-driven execution, underpenetrated markets and supportive competitive landscape position it for sustained high growth, while its disciplined, costefficient approach allows both expansion and profitability gains. BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/478019.pdf

[winston]

not vested

Sea Ltd - Stock Analyst Research
Target Price* US 170.00
Recommendation NEUTRAL

Sea Ltd.- Profitability surge and Garena slowdown

2Q25 revenue/PATMI were in line with expectations, with its 39% YoY growth primarily driven by strength in Shopee (+34% YoY in revenue) and Monee (+70% YoY in revenue).

1H25 revenue/PATMI was at 48%/46% of our FY25 estimates.

PATMI grew 418% YoY to US$414mn. Shopee and Monee maintained strong momentum, fueled by higher take rates in commissions & ads, as well as robust loan book growth. Garena shows signs of a slowdown in growth.

We maintain our NEUTRAL recommendation.

We raised our FY25 revenue/PATMI by 1%/9% to reflect growth in Monee, Shopee, as well as the improvements in take rates.

We raised our DCF target price to US$170 (previously US$160) given the strong momentum in e-commerce and financial services as well as improved monetization, with an unchanged terminal growth rate of 4.5%, and a WACC of 7.6%. We see limited upside due to stretched valuations.

Source: Phillips

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

[winston]

not vested

Is Gaming a cash-cow or a star like E-commerce & Fintech?

Gaming bookings reached USD661mn (+23% y/y)in 2Q25, outperforming global peers such as Electronic Arts and Take-Two Interactive.

Mobile Gaming especially is seeing a continuous reduction in R&D costs along with accelerated development cycles from AI-assisted coding also evident at Tencent.

With the launch of Netflix’s Squid Game and NARUTO SHIPPUDEN Chapter 2 in 3Q25, SE has raised FY25F Gaming booking growth to >30%, implying some upside to consensus’ FY25F/26F booking growth of 31%/9%.

Maintain BUY on SE with a target price of USD204.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=27343

[winston]

not vested

Sea’s ‘Free Fire’ becomes highest-earning mobile shooting game in US

US gamers are spending more on Sea’s Free Fire than Call of Duty Mobile, with anime and Netflix tie-ins helping the title surge in sales this year and rank as the highest-earning smartphone shooting game.

Free Fire jumped seven spots to sixth place in mobile game sales in July, helping push overall US mobile spending up 7 per cent.

Source: Business Times

https://www.businesstimes.com.sg/lifest ... ng-game-us