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.

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