Re: Sea Ltd SE (former Garena)
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not vested
Cost savings improve earnings
3Q22 earnings within expectation
Sea’s 9M22 USD9b (+33.6% YoY, -0.3% QoQ) revenue was marginally below our/consensus’ full-year expectation, but gross profit of USD3.5b (+35% YoY) met our/consensus estimates (77%/75%), stemming from better unit economics for Shopee and increased traction for DFS.
Our forecast has not been adjusted as we expect further headwinds for the digital
entertainment business in 4Q22.
Our lower SOTP-based target price of USD98 (from USD105) indicates 54% upside as we have adjusted our valuation multiple to better reflect profitability metrics for Shopee and DE.
Maintain BUY.
Source: Maybank
https://mkefactsettd.maybank-ke.com/PDFS/289425.pdf
Cost savings improve earnings
3Q22 earnings within expectation
Sea’s 9M22 USD9b (+33.6% YoY, -0.3% QoQ) revenue was marginally below our/consensus’ full-year expectation, but gross profit of USD3.5b (+35% YoY) met our/consensus estimates (77%/75%), stemming from better unit economics for Shopee and increased traction for DFS.
Our forecast has not been adjusted as we expect further headwinds for the digital
entertainment business in 4Q22.
Our lower SOTP-based target price of USD98 (from USD105) indicates 54% upside as we have adjusted our valuation multiple to better reflect profitability metrics for Shopee and DE.
Maintain BUY.
Source: Maybank
https://mkefactsettd.maybank-ke.com/PDFS/289425.pdf