Sea Limited (SE): E-Commerce Profit Growth Outlook Improves
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Huatai Securities reviews Sea Limited's (SE) 2Q26 results: revenue of $7.79 billion, up 48.1% year over year and well above the Visible Alpha consensus of $7.16 billion, with all three segments beating; adjusted EBITDA of $0.92 billion topped the $0.9 billion consensus. E-commerce revenue rose 48.2% to $5.59 billion on advertising growth above 70%, and management raised 2026 e-commerce adjusted EBITDA guidance to at least $1.0 billion (previously no less than $0.88 billion) while maintaining full-year GMV growth above 25%. Monee revenue grew 59.0% to $1.40 billion; its loan book reached about $11 billion, up 62.5%, with the NPL ratio around 1.0%. Gaming revenue advanced 33.5% to $750 million on bookings of $760 million and a 10.2% paying ratio. Huatai lifted 2026-2028 adjusted EBITDA forecasts by 8.6%/12.1%/10.2% to $4.09/$5.59/$6.74 billion and raised its SOTP target price from $136.2 to $176.1 (gaming $33.2 per share at 15.8x PE; e-commerce $79.1 at 0.32x P/GMV, up from 0.18x; payments $63.8 at 7x PS), maintaining 'Buy.' For 3Q26 it models revenue of $8.04 billion (+34.4%) and adjusted EBITDA of $1.01 billion. Key risks: fiercer e-commerce competition and heavier fulfillment or membership spending.