SEA (SE.N) Equity Research·Company Research·Electronic Commerce 1 / 13 东吴证券（香港） 请务必阅读正文之后的免责声明部分 [Table_Main] Sea Q2 Earnings QuickTake: Short-term growth is under pressure, and e-commerce profitability has improved due to efficiency improvement strategy Buy (Maintain) Forecast & Valuation 2021A 2022E 2023E 2024E Revenue (USD mn) 9955 12,502 16,788 19,990 Growth (YoY %) 128% 26% 34% 19% Non-GAAP net profit (USD mn) -1576 -2,137 -1,494 -330 Growth (YoY %) - - - - Diluted EPS (USD, Non-GAAP) -2.83 -3.83 -2.68 -0.59 P/E (X, Non-GAAP) - - - - Investment Thesis ◼ Event: Sea’s GAAP revenue was USD2.9 bn in 22Q2, up by 29% YoY, slightly lower than Bloomberg consensus. The company’s adjusted net loss was USD570mn (USD320mn in 21Q2), broadly in line with expectation. ◼ E-commerce's GMV missed expectation, but earnings improved significantly. In 22Q2, Sea’s GAAP revenue of E-commerce was USD1.7bn (+51% YoY), and GMV reached USD19bn (+27% YoY), both of which miss consensus, mainly because the company was affected by external factors such as global inflation and the decline in consumption. Assuming constant exchange rates, revenue would have been up by 56% YoY and GMV up by 31% YoY. The Brazilian market still maintains rapid growth, with GAAP revenue increasing by more than 270% YoY in 22Q2. Since 2022, the company has been focusing on high-quality development and promoting the improvement of overall operational efficiency under macro headwinds. Losses continued to narrow in 22Q2; adjusted EBITDA loss per order was 33 cents (41 cents in 22Q2). The adjusted EBITDA loss per order in Southeast Asia and Taiwan Market was less than 1 cent before headquarters cost allocation, an improvement of 95% YoY, which was very close to the break-even point (BEP). The adjusted EBITDA loss per order in Brazil was 1.42 USD, with >35% YoY growth. ◼ Revenue from games and user numbers beat expectation. The number of game users in 22Q2 has stabilized, and quarterly average users (QAU) increased by 1% QoQ to 619.3mn, which was better than consensus and in line with our previous judgment. However, due to macroeconomic impact, user payment rate decreased by 0.9pct QoQ to 9.1%, and adjusted ARPU decreased by 14% QoQ to 1.16 USD. GAAP revenue was USD900mn, down by 12% YoY, better than consensus, and adjusted revenue was USD720mn. Adjusted EBITDA was USD330mn, down by 23% QoQ, because profitability declined slightly due to short-term increase in marketing investment. ◼ The revenue of digital finance was in line with expectations, and the ecological synergy is continuously proven. In 22Q2, Sea’s GAAP revenue of digital finance was USD279mn, up by 214% YoY, in line with expectations. The proportion of digital finance's revenue increased to 9.5%. Total payment volume (TPV) reached USD5.7bn, up by 35.7% YoY. Adjusted EBITDA loss was USD110mn, which narrowed both YoY and QoQ. The strong growth and narrowing losses are mainly due to the expanding synergies with the e-commerce business. In 22Q2, nearly 40% of the quarterly active buyers on Shopee in Southeast Asia used SeaMoney's products or services. ◼ Earnings Forecast & Rating: We maintain "Buy" rating because internet market in Southeast Asia and Latin America has a lot of potential in the long run and Sea's strong localized operation capabilities and ecological synergy still have advantages. However, considering that short-term external pressure is relatively high, we revise down the company’s 2022-2024 adjusted EPS estimates from -3.88/-2.43/-0.25 USD to -3.83/-2.68/-0.59 USD. ◼ Risks: Macroeconomic risk; shareholders selling shares; global environmental risk; insufficient cash flow due to continuous losses; lower-than-expected game industry and new game development. [Table_PicQuote] Price Movement [Table_Base] Market Data Closing price (USD) 77.43 52-week Range (USD) 54.06/231.21 P/B (X) 6.90 Market Cap (USD mn) 31727.89 Basic Data data BVPS(USD, LF) 11.23 Liabilities/assets (%) 65.69 Total Issued Shares (mn) 557.74 Shares outstanding (mn) 409.76 [Table_Report] Related reports 《SEA(SE)：业务数据跟踪：电商竞争力持续突显，期待盈利优化》 2022-08-06 《SEA(SE)：2022年一季度点评：业绩整体好于预期，期待生态协同持续增强》 2022-05-19 Soochow Securities International Brokerage Limited would like to acknowledge the contribution and support provided by Soochow Research Institute, and in particular its employees Liangwei Zhang(张良卫) and Lulu Xia(夏路路). [Table_Author] 26 September 2022 Research Analyst Shirui Ouyang (852) 3892 3120 ouyangshirui@dwzq.com.hk -100%-80%-60%-40%-20%0%20%40%2021-82021-112022-22022-52022-8SEA纳斯达克指数NASDAQ SEA（SE） 证券研究报告·海外公司点评·互联网电商 2 / 13 东吴证券（香港） 请务必阅读正文之后的免责声明部分 [Table_Main] 2022年二季报点评：短期增速承压，提效策略下电商盈利改善亮眼 买入（维持） 盈利预测与估值 2021A 2022E 2023E 2024E 营业总收入（百万美元） 9955 12,502 16,788 19,990 同比 128% 26% 34% 19% Non-GAAP净利润（百万美元） -1576 -2,137 -1,494 -330 同比 - - - - 每股收益