SEALIMITED, known as “Southeast Asian Tencent” will announce 2021Q3 earnings before the US stocks (Tuesday) US stocks.
The Galaxy-Lianchang Securities Exposition reported that the SEA is expected to be adjusted after the third quarter of the third quarter of $ 2.6 billion (1 + 8% year-on-year + 66%). Considering the steady operation of the SEA core business, the brokerage gave the SEA “increasing” rating, the target price of $ 425 from $ 345 through new joint ventures.
The specific analysis is as follows:
1. Game business Garena: It is expected that Q3 revenue increased by 27.2% to 1.2 billion US dollars than to date “Freefire” and the continued growth of players. The broker expects the gain of the game business to reach $ 1.2 billion (10% + 1.8% , + 27.2% year-on-year. But with the release of the “BattlegroundsMobile” in July, the release of the Indian version of the Pubgmobile, the competition in the Indian game market is more intense, and the broker is more conservative for continuous growth.
2, e-commerce business Shopee: It is expected that Q3GMV increased by 80% year-on-year. The revenue increased by 112% to 1.3 billion US dollars. With Southeast Asian multi-country tightening new crown pneumonia prevention and control measures, it is expected that Shopee’s total commodity transaction (GMV) will achieve another round. Upset (+ 11.1% year-on-year, + 80% year-on-year), promoting business revenue will usher in a new round of strong growth, reaching 1.3 billion US dollars (+ 112% year-on-year), is expected to exceed Garena to become the largest income contributor of SEA.
3, Digital Financial Services Seamoney: It is expected that Q3 revenue increased by 670% to $ 110.9 billion, with more users, using ShopeePay and Seabank, SEA’s digital financial services department may maintain strong growth, and it is expected that the department Q3 is $ 110.9 million. (+ 25% from 10%, + 670% year-on-year).
Overall, Galaxy-Lianchang Securities increased by 1.5% -6.7% of the revenue of the 20021-2023 fiscal year because the company’s strong growth momentum and through various initiatives have expanded the overall potential market. However, this may postpone the time of SEA tobital, and it is expected to achieve non-GAAP earnings in fiscal 20023.
In the upcoming Q3 performance conference, you need to pay attention to the main matters:
1 “Freefiremax” market response, the update of game channels;
2 The latest developments in the e-commerce competition, especially in Indonesia;
3Shopee’s market expansion strategy and new products that may be launched.
Risk factors: E-commerce competition intensified; new market operation risks; supervision risks brought by tax regulations.
Peng Bo predecessor, SEA21Q3 revenue was US $ 276 million, an increase of 127.7% year-on-year; the net loss was 317.2 million US dollars.