Sea Limited: Steady momentum across businesses + 2Q preview

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Sea Limited: Steady momentum across businesses + 2Q preview

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Sea Limited

Steady momentum across businesses + 2Q

preview

Maintain Rating: BUY | PO: 120.00 USD | Price: 102.33 USD

E-commerce: Stable competition; Investment continues 02 July 2026

Our recent industry checks indicate that competition from Tiktok Shop (TTS) in SE Asia Equity

has largely been stable. Shopee continues to invest across e-com markets to strengthen

its competitive positioning. In SE Asia, Shopee is looking to drive up penetration of VIP Sachin Salgaonkar >>

program shoppers. In Taiwan, it is investing to improve its unmanned lockers network & Research Analyst

BofAS India

1P offering and in Brazil, Shopee continues to gain market share despite news flow of +91 22 6632 8667

increased competition. Amongst these three markets, SE Asia is loss making at EBITDA sachin.salgaonkar@bofa.com

level. We expect SE Asia e-com business to breakeven by end of this year. In 2Q, Pankaj Mehendiratta >>

Research Analyst

Shopee’s momentum is resilient & doesn’t show any impact from any macro softness. BofAS India

+91 22 6632 8684

Gaming & Fintech stable; AI strategy: Results oriented pankaj.mehendiratta@bofa.com

Sukriti Bansal >>

In Gaming, while 2Q is a seasonally slower quarter, we note that the momentum of Free Research Analyst

Fire and Arena of Valor remains steady. Fintech is making good headway with off- Merrill Lynch (Singapore) +65 6678 0454

Shopee expansion. More users are progressing from on-Shopee SPayLater to off-Shopee sukriti.bansal@bofa.com

SPayLater and personal cash loans. Sea’s AI strategy is more results oriented. Sea is Kaushik Gurumurthy, CFA >>

using AI to 1) Optimize business operations in areas like purchase conversion, reduce ResearchBofAS IndiaAnalyst