Broker: DBS Group Research
Date of Report: 21 April 2026

Excerpt from DBS Group Research report.

Report Summary

• Stock: Sea Ltd (SE US)
• Action: BUY (Maintained)
• 12-month Target Price: USD138.00 (revised down from USD151.00)
• Last Traded Price: USD91.33
• Most Important Idea: Sea Ltd is prioritizing market share and wallet expansion for Shopee (e-commerce segment) in FY26F, focusing on ~25% GMV growth but expecting flat year-on-year adjusted EBITDA due to heavy investments in promotions, AI, content, and fulfilment. This strategy is intended to defend its leadership against rapid growth from TikTok Shop, which is intensifying competition in Southeast Asia.
• Key Highlights:
  • Shopee: No.1 e-commerce platform in Southeast Asia, but facing pressure from TikTok Shop. Market share gap narrowed to 18% in 2025 and could shrink further as TikTok Shop continues aggressive expansion with subsidies and fulfilment incentives.
  • Gaming (Garena): Stable with 24% year-on-year bookings growth and 54% margins in Q4 2025. Minimal risk seen from Google Genie.
  • FinTech (Monee/SeaMoney): Loan book grew 80% YoY to USD9.2bn, with continued strong growth expected in Southeast Asia and expansion into Brazil and Philippines.
  • Valuation: E-commerce business valued at 2.0x EV/revenue (22% discount to peers due to lower profitability). Gaming at 12x EV/EBITDA (10% premium to peers). Fintech at 15x EV/EBITDA. Bear-case TP is USD96.
  • Financial Health: Strong balance sheet with over USD10.6bn cash and equivalents as of FY25. No major fundraising needed in next 2-3 years.
  • Risks: Further margin pressure if TikTok Shop sustains aggressive subsidies; potential downside to consensus EBITDA estimates for Shopee.
• Implications for Investors: Sea Ltd remains a BUY for long-term investors seeking exposure to Southeast Asian e-commerce, gaming, and fintech, despite near-term margin compression due to competitive pressure. Investors should monitor Shopee’s ability to defend market share and future margin recovery as TikTok Shop’s strategy evolves.

above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website : https://www.dbs.com.sg/