SEA: Capacity build out meets strong demand

Research evidence excerpt

SEA: Capacity build out meets strong demand

Deutsche Bank

Research

Rating Company Date

Buy SEA 13 May 2026

Forecast Change

Asia

Singapore

Reuters Bloomberg Exchange Ticker Price at 12 May 2026 (USD) 96.02

SE.N SE US NYS SE

Price target - 12mth (USD) 135.00

Media

52-week range (USD) 196.50 - 78.16

Broadcasting / Movie &

Straits Times Index 4,943

Entertainment

Capacity build out meets strong

Valuation & Risks demand

Peter Milliken, CFA

All three units advance revenue by more than 40% Research Analyst

SEA had another strong quarter for revenue, which grew 47% to USD7.1bn, led by +852-2203 6190

across the board strength. The growth represented a 9pp QoQ acceleration. Net

profit however, only increased by 7% YoY to USD438m and adjusted EBITDA by 9% Key changes

due to the growth investments underway, particularly the logistics build-out in 130.00 to

TP ↑ 3.8%

Brazil, that is hurting gross margin due to the early stage diseconomies of scale. 135.00

Management noted they are seeing unit economics start to improve for some of 30,294 to

Sales (FYE) ↑ 1.2%

these initiatives. 30,643

Op prof margin

7.7 to 7.8 ↑ 1.6%

In 1Q, Shopee GMV expanded 30% to USD37bn on a similar order volume growth (FYE)

rate, helped by double digit rises in active customers and order frequency. This Net profit (FYE) 1,993.4 to ↓ -8.1%

leaves it on track for 2026 guidance of around 25% GMV growth, and EBITDA to be 1,832.2

no lower than in 2025. For Shopee, its investment in distribution will lead to Source: Deutsche Bank

improved service quality and economies of scale, which will help in markets where Price/price relative

competition tends to be investing as well.

The digital financial services segment ("Monee") lifted revenue by 58% YoY to

USD1.2bn on 71% loan growth to USD9.9bn.