2Q26 First Cut: EC Beat; Guidance Raised

Research evidence excerpt

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M

Update

August 11, 2026 11:52 AM GMT

Morgan Stanley Asia (Singapore) Pte.+

Sea Ltd | Asia Pacific

Divya Gangahar Kothiyal

Equity Analyst

2Q26 First Cut: EC Beat;

Guidance Raised

Eileen Lin

Research Associate

Morgan Stanley Asia Limited+

Gary Yu

Equity Analyst

AlphaSignals Earnings Reaction

Strengthens our thesis

Modest upside

Modest revision higher

Joanne Lau

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Research Associate

Source: Company data, Morgan Stanley Research

Key Takeaways

Adj revenue was US$7.80bn (+46% y/y), 6% above MSe/8% above consensus

driven by higher EC revenues. EC GMV +28.4%, 2% ahead of consensus.

Sea Ltd (SE.N, SE UN)

Headline adj EBITDA at US$917mn (+11% y/y) was in line but EC adj EBITDA beat

ASEAN Internet | Singapore

at US$255mn implying 67bp margin on GMV (Street ~62bp).

also ahead of consensus.

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 10, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

Monee revenue beat by 5% vs. MSe but adj EBITDA margin was lower at 20.5% (-

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

164bp q/q) as S&M +27% q/q and provisions as % of revenue were also higher.

EPS (US$)**

Revenue, net (US$ mn)

EBITDA (US$ mn)

ModelWare net inc (US

$ mn)

ROE (%)

2.65

3.05

4.30

5.33

22,938 31,159 38,319 45,218

2,357

3,214

4,361

5,473

1,578

2,042

2,912

3,641

Shopee adj EBITDA 2026 guidance raised to US$1bn (implying at least 14% y/y

growth vs. earlier guidance of a tleast flat y/y). MSe US$1.05bn; Street US

$968mn.

Garena's bookings +15% y/y, 2% ahead of consensus with adj EBITDA +17% y/y.

Stock view: We expect a positive reaction given EC has been a key focus metric. A

beat and raise for EC should alleviate investor concerns on stagnancy in profitability

with investments starting to show returns.

Buyback: Repurchased 4.7mn shares in 2Q for an aggregate amount of US$416.8mn

18.8

Overweight

In-Line

US$130.00

13

US$114.80

US$199.24-77.05

638

US$73,268

US$61,723

US$131

16.3

19.2

19.6

…