“While near-term gross merchandise value (GMV) growth could remain dampened by various cost-cutting measures, our 1QFY2023 GAAP revenue forecast of US$3.16 billion remains higher versus Bloomberg consensus’ US$3.02 billion as we assume higher take rate,” the analysts add.
CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan have kept “add” on Sea Ltd with a target price of US$105 ($139), highlighting the firm’s strong footing in capturing long term tailwinds from Asean digitalisation.
Sea will be reporting its 1QFY2023 ended March results on May 16. The analysts expect Sea to report further margin improvement in 1QFY2023 as well as adjusted ebitda and generally accepted accounting principles (GAAP) net profit of US$508 million and US$259 million respectively. This is driven by further monetisation and cost-control measures for Shopee and SeaMoney, which CGS-CIMB believes would more than offset the weakness in Garena.
