Sea(US:SE) CMS·2025-08-13 12:19Investment Rating - The report maintains a "Strong Buy" rating for Sea (SE.N) [1][4] Core Insights - Sea's Q2 2025 performance exceeded expectations with revenue of $5.3 billion, a 38% increase year-over-year, and e-commerce revenue of $3.8 billion, up 33.7% [1] - The company has raised its growth guidance for the year, expecting a 25% year-over-year increase in Shopee's GMV for the first half of 2025 and over 30% growth in Garena's bookings for the year [1][4] - The financial services segment is experiencing rapid growth, with Sea Money's revenue reaching $883 million, a 70% increase year-over-year, and a loan portfolio growth of over 90% [4] Financial Performance - For 2025, the company forecasts total revenue of $21.7 billion, with a year-over-year growth rate of 29% [2] - Adjusted EBITDA is projected to be $3.55 billion in 2025, reflecting an 81% increase from the previous year [2] - Earnings per share (EPS) is expected to rise significantly to $4.46 in 2025, compared to $0.27 in 2023 [2][8] Business Segments - E-commerce: Shopee's GMV for Q2 was $29.8 billion, a 28.2% increase, with strong growth in advertising revenue and user engagement [4] - Digital Entertainment: Revenue for Q2 reached $560 million, a 28.4% increase, with a significant rise in active users and bookings [4] - Digital Financial Services: Sea Money's loan book reached $6.9 billion, with a healthy delinquency rate of only 1.2% [4] Market Position - Sea has established itself as a market leader in Brazil, with 25% of packages delivered the next day and 40% within two days, while also reducing logistics costs by 16% year-over-year [4] - The company is enhancing user loyalty through initiatives like the VIP membership program, which has shown promising results in Indonesia [4] Stock Performance - The stock has shown strong performance with a 160.2% increase over the past 12 months [3]