Sea Ltd SE (former Garena)

[winston]

not vested

Playing the long game

3Q25 results beat estimates, thanks to strong gaming momentum despite the e-commerce segment coming in below Bloomberg expectations.

Management reiterated that it is prioritising revenue growth and expects gradual yoy margin improvement for FY26-27F.

Reiterate Add with a higher TP of US$195 as we believe investment initiatives will yield results and lead to operational efficiency in coming years.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... eb5823a2ba

[winston]

not vested

3Q25: Minor Reinvestment To Unlock Bigger Potential Highlights

3Q25 results were below expectations as Shopee’s higher S&M spend compressed margins despite top-line growth across all segments.

Monee’s rapid scaling and Garena’s rebound offset e-commerce margin dip.

We believe minor reinvestments in 3Q25 could unlock stronger future growth.

Maintain BUY with a 2% lower target price of US$200.18 (from US$204.85).

Source: UOBKH

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