Internet platform provider Sea’s 3QFY2020 results came in above expectations with strong revenue growth at 99% y-o-y, say CGS-CIMB analysts Ong Khang Chuen and Darren Ong. In a Nov 18 note, the analysts maintained their ‘add’ call on the company, with a raised target price of US$210.0 from US$185.3.

“Sea’s 3Q20 revenue of US$1.2 billion (+37% q-o-q, +99% y-o-y) was ahead of expectations, led by stronger bookings in its digital entertainment (Garena) and better monetisation of its e-commerce (Shopee) units,” note the analysts.

Led by Garena’s strong earnings growth, 3Q20 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$120.4 million came in significantly stronger compared to 2QFY2020’s US$7.7 million and previous year’s loss, note CGS-CIMB.

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