Broker Name: CGS International
Date of Report: March 4, 2026
Excerpt from CGS International report.
Report Summary
- Sea Ltd’s 4Q25 EBITDA missed expectations due to short-term, investment-driven costs in e-commerce, but the long-term outlook remains positive with margin recovery expected in 2H26 as scale and efficiency improve.
- Digital financial services (SeaMoney) are seeing strong loan book growth and improved profitability, while the gaming segment (Garena) is expected to achieve double-digit revenue growth in FY26 with new IP collaborations.
- Shopee remains the dominant e-commerce platform in Southeast Asia and Brazil, prioritizing sustainable growth, logistics investment, and user engagement over short-term market share battles.
- Management guides for FY26 GMV growth to exceed 25% and expects e-commerce and group-level margins to improve after the current investment phase.
- The analyst reiterates an Add rating and target price of US\$195, citing key catalysts such as stronger loan book growth, better margins, and successful new games. Main risks include competitive pressure and potential margin compression.
- Sea Ltd maintains a strong ESG profile with a focus on hyperlocalization, diversity, and social impact across Southeast Asia.
- Financials show robust revenue and EBITDA growth forecasts through FY28, with improving ROE and operating metrics.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
