Sea(US:SE) Guoxin Securities·2025-08-16 13:23Investment Rating - The report maintains an "Outperform" rating for the company [5][26]. Core Insights - The company's revenue for Q2 2025 reached $5.3 billion, representing a year-over-year growth of 38%, driven primarily by strong performance in e-commerce and digital financial services [9][26]. - The adjusted EBITDA for the quarter was $828 million, with a corresponding profit margin of 16% [9]. - The e-commerce segment saw revenue of $3.8 billion, up 34% year-over-year, with GMV growth of 28% [12][26]. - Digital financial services generated $883 million in revenue, a 70% increase year-over-year, with a stable non-performing loan rate of 1.0% [16][26]. - The digital entertainment segment reported revenue of $559 million, a 28% increase year-over-year, with an expected annual revenue growth of over 30% [19][26]. Summary by Sections Overall Performance - The company reported a total revenue of $5.3 billion for Q2 2025, with a net profit of $410 million and a net profit margin of 8% [9][26]. E-commerce Business - E-commerce revenue was $3.8 billion, with a GMV growth of 28% year-over-year. The platform's monetization rate improved from 10.3% to 11.1% [12][26]. - The adjusted EBITDA for the e-commerce segment was $228 million, with a profit margin of 6.0% [12][26]. Digital Financial Services - Digital financial services achieved revenue of $883 million, a 70% increase year-over-year, with an adjusted EBITDA of $255 million and a profit margin of 29% [16][26]. - The total receivables reached $6.9 billion, a 90% increase year-over-year, with over 4 million new first-time borrowers added in the quarter [16][26]. Digital Entertainment - The digital entertainment segment generated $559 million in revenue, with a 23% increase in revenue streams. The number of paying users reached 61.8 million, an 18% year-over-year increase [19][26]. - The company expects the annual revenue growth for digital entertainment to exceed 30% [19][26]. Financial Forecasts - Revenue forecasts for 2025-2027 have been adjusted to $21.6 billion, $26.4 billion, and $30.4 billion, respectively, with corresponding net profit forecasts of $1.8 billion, $2.9 billion, and $3.8 billion [26].