Investment Rating - The report maintains a "Buy" rating for Sea (SE.US) and raises the target price to 165[4][6].CoreInsights−Thecompany′srevenueforQ42024reached4.95 billion, representing a year-on-year growth of 36.9%, exceeding market expectations by 6.1% [2]. - The adjusted EBITDA for Q4 2024 was 590million,withanadjustedEBITDAmarginof11.9410 million, with an adjusted net profit margin of 8.3% [2]. - The e-commerce segment showed profitability improvement, with a projected GMV growth rate of 20% for 2025 [2][4]. - Digital financial services revenue grew by 55.2% year-on-year in Q4 2024, driven primarily by credit business [3]. - Digital entertainment revenue turned positive with a 1.2% year-on-year increase in Q4 2024, and the company expects double-digit growth in 2025 [3]. Financial Performance Summary - For FY23, the company reported total revenue of 13.064billion,withprojectionsof16.820 billion for FY24 and 20.854billionforFY25[5].−TheadjustedEBITDAisexpectedtogrowatacompoundannualgrowthrate(CAGR)of35151 million in FY23 to 1.450billioninFY25[12].MarketPositionandValuation−Thecurrentmarketpriceis132.31, with a potential upside of 25% to the target price of 165[7].−Thecompanyhasatotalmarketcapitalizationof75.726 billion [7]. - The report indicates that the company’s various business segments are maintaining strong growth trajectories, particularly in e-commerce and digital financial services [4].
