Sea Limited（SE）：1Q25利润超预期，维持全年指引

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to $170, indicating a potential upside of 19$142.45 [2][4][17]. Core Insights - The company reported a strong performance in Q1 2025, with revenue of $4.84 billion, a year-on-year increase of 30$950 million, exceeding market expectations by 36%, with an adjusted EBITDA margin of 19.6% [1]. - E-commerce revenue grew by 28.3% year-on-year, with GMV increasing by 21.5%. The adjusted EBITDA margin for e-commerce improved to 7.5%, driven by scale expansion, cost optimization, and enhanced monetization capabilities [1]. - The digital financial services segment saw a 58% year-on-year revenue growth, with over 4 million new borrowers and a loan principal of $5.8 billion. The business has been rebranded as Monee, positioning it as one of Southeast Asia's largest unsecured consumer loan companies [2]. - The gaming segment experienced an 8$21.14 billion, with an adjusted EBITDA of $3.59 billion and a net profit of$1.77 billion, reflecting significant growth from previous years [4][9]. - The adjusted net profit margin is projected to improve to 8.4% by FY25E, with a continued upward trend in profitability expected through FY27E [9]. Business Segments - E-commerce remains a key growth driver, with a focus on local market penetration and resilience against tariff uncertainties due to low cross-border trade exposure [1]. - The digital financial services segment is expected to continue its rapid growth, supported by effective credit risk management and adaptability to macroeconomic changes [2]. - The gaming segment is anticipated to maintain double-digit growth in users and revenue, bolstered by successful game launches and collaborations [2]. Market Position - The company is well-positioned in the market with strong competitive advantages, including localized operations and a robust product offering that minimizes the impact of discretionary spending fluctuations [1][2].