China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

SE/BABA/PDD: Lazada's Fully Managed Model Will Impact Shopee, a Summary of Our Recent Channel Checks

SE/Tiktok:Chinese Practitioners' Discussions About TikTok's E-Commerce Business in Southeast Asia

[Sea (SE US, SELL, TP US$51) TP Change]: Competitive Landscape Intensifying… Cut TP to $51

[Sea Limited (SE US, SELL, TP US$62) Earnings Preview]: Increase Spending in ECommerce and Gaming

[Sea Limited (SE US) Target Price Change]: Expect Weak Growth Trend into 2023

Sea Ltd's (SE US) - Through the Looking Glass

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>SE reported C1Q23 revenue/non-GAAP net income in-line/(37%) vs. cons., and (3.2%)/(31%) vs. our est. Profit miss is mainly due to the 53% YoY decline in game revenue</li>
<li>We suggest that 1) game development and S&amp;M cost cutting, as well as 2) disappointing game content updates during 1Q23, lead to the weak result; </li>
<li>In the long run, we still expect Shopee growth to be SE’s major issue, as TikTok continues to grow rapidly. We maintain SELL and cut TP to US$ 60.</li>
</ul>


SE reported C1Q23 revenue/non-GAAP net income in-line/(37%) vs. cons., and (3.2%)/(31%) vs. our est. Profit miss is mainly due to the 53% YoY decline in game revenue
We suggest that 1) game development and S&amp;M cost cutting, as well as 2) disappointing game content updates during 1Q23, lead to the weak result; 
In the long run, we still expect Shopee growth to be SE’s major issue, as TikTok continues to grow rapidly. We maintain SELL and cut TP to US$ 60.


[Sea Limited (SE US, SELL, TP US$60) Target Price Change]: Cut Gaming Revenue and Margin Forecast