Broker Name: Maybank Research Pte Ltd
Date of Report: October 30, 2025
Excerpt from Maybank Research Pte Ltd report.
- MercadoLibre (MELI) intensified competition in Brazil’s e-commerce market by lowering its free shipping threshold and reducing seller fees, resulting in a surge in buyer activity and items sold, but at the cost of near-term operating margins.
- Shopee’s competitive edge in Brazil is pressured, as MELI’s aggressive strategy gains traction, while Sea Ltd (SE) faces escalating competition in key markets. The report maintains a HOLD rating for SE, citing uncertainty around future margin improvement and market share defense.
Report Summary
- MELI’s competitive moves in Brazil’s e-commerce segment (lower shipping threshold and fees) led to strong buyer growth but decreased margins.
- Shopee’s value proposition remains competitive, but MELI’s push into low-value categories is gaining momentum.
- Competition is intensifying in Brazil and Taiwan; Sea Ltd is expected to respond aggressively, but margin improvement remains unclear.
- Southeast Asia e-commerce competition is rational, but near-term margins for Sea Ltd may remain pressured.
- Sea Ltd’s financials show strong revenue and EBITDA growth forecasts, with a healthy balance sheet and net cash position.
- Key risks include increased competition, weaker consumer spending, and higher credit costs for its financial services arm.
- Sea Ltd has implemented ESG initiatives, including support for SMEs and diversity in its workforce.
- The report maintains a HOLD rating for Sea Ltd, with a 12-month price target of USD 172.00.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website: https://www.maybank-keresearch.com
