CGS-CIMB Research analysts Ong Kang Chuen and Darren Ong have maintained their “buy” rating and target price of US$315 ($424.13) on Sea Limited after its 4QFY2020 results came in ahead of expectations. 

Sea’s adjusted revenue of US$2 billion was 20% higher q-o-q,  and a massive 120% higher y-o-y, which were “led by stronger bookings in its digital entertainment (Garena) and better monetisation of its e-commerce (Shopee) units,” noted the analysts.

Due to heavier marketing efforts for Shopee’s major e-commerce events in 4QFY2020, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) of US$49 million was weaker q-o-q, but this was an improvement over 4QFY2019’s adjusted EBITDA figure of US$105 million.


To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook