Broker Name: Maybank Research Pte Ltd
Date of Report: November 18, 2025
Excerpt from Maybank Research Pte Ltd report.
- Sea Ltd announced a USD1 billion share repurchase program, signaling confidence in its long-term outlook; the buyback represents about 1.1% of its market cap and is a near-term catalyst.
- Compared to peers, Sea’s buyback size is smaller relative to its market cap and trading liquidity; historically, such buybacks have led to an average 20% stock price rerating within six months for global and ASEAN companies.
- Maybank retains a HOLD rating with a target price of USD156, citing expectations of slower ecommerce margin recovery and declining gaming/financial services margins in 2026, but notes strong revenue and EBITDA growth forecasts through 2027.
- Sea maintains a strong balance sheet, dominant position in ASEAN ecommerce, and a defensive gaming franchise, though faces risks from competition, consumer spending trends, and regulatory factors.
- No dividends are expected; the company is projected to remain net cash positive, with significant growth in revenue, EBITDA, and net profit through 2027.
Report Summary
- Sea Ltd’s USD1b share buyback highlights management’s confidence and may be a short-term catalyst, but overall program size is modest compared to peers.
- Maintain HOLD rating as margin uncertainties linger, though strong growth trajectory remains; company is expected to remain financially robust with continued leadership in key Southeast Asian markets.
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 website: www.maybank.com/investment-banking
