Sea(US:SE) Guohai Securities·2025-08-17 15:07Investment Rating - The investment rating for Sea Limited is "Buy" (maintained) [1] Core Insights - Sea Limited's Q2 2025 financial results exceeded expectations, with significant growth in e-commerce and financial services [2][5] - The company reported Q2 2025 revenue of $5.26 billion, a year-over-year increase of 38%, and a net profit of $4.1 billion, up 418% year-over-year [4][9] Summary by Sections Financial Performance - Q2 2025 revenue reached $5.26 billion, with a gross profit of $2.41 billion, operating profit of $490 million, and adjusted EBITDA of $830 million, all showing substantial year-over-year growth [4][9] - E-commerce revenue was $3.8 billion, up 34% year-over-year, with a GMV of $29.8 billion, reflecting a 28% increase [6][7] E-commerce Segment - E-commerce metrics such as GMV, order volume, and Take Rate surpassed expectations, driven by strong performance in Southeast Asia and Brazil [6][7] - The Take Rate for Q2 2025 was 12.65%, up 0.55 percentage points year-over-year, attributed to robust advertising revenue growth [6] Financial Services Segment - Financial services revenue grew to $880 million, a 70% increase year-over-year, with a core indicator of outstanding loan balance reaching $6.9 billion, up 97% year-over-year [9][10] - The company added 4 million new borrowers, with active users of consumer and SME loan products exceeding 30 million, a 45% year-over-year increase [9] Gaming Segment - Gaming revenue for Q2 2025 was $560 million, a 28% increase year-over-year, with bookings of $660 million, reflecting a 23% year-over-year growth [10][11] - The game "Free Fire" has solidified its status as a long-term game, contributing to the overall growth of the gaming segment [10][11] Future Projections - The company expects revenue for 2025-2027 to be $21.2 billion, $25.8 billion, and $30.3 billion respectively, with net profits projected at $1.68 billion, $2.75 billion, and $3.21 billion [11][13]