Daiwa: Shopee e-commerce platform under Sea Group may be in reinvestment phase; "Buy" rating reiterated

Glonghui April 3rd｜Analysts at Daiwa Capital Markets stated in a research report that Shopee, the e-commerce platform under Sea Group, appears to be in a reinvestment phase. These analysts pointed out that the platform is prioritizing infrastructure construction, logistics capabilities, and targeted user initiatives over short-term profitability. Although the platform's gross merchandise value continues to be supported by a healthy combination of buyer expansion and increased order frequency, Daiwa expects there will be no significant earnings surprises in the short term. The brokerage lowered its adjusted earnings per share forecast for Sea Group in 2026 by about 4% and cut its target price for the US American Depositary Receipt from $165.00 to $157.00. However, it reiterated its "Buy" rating, as the risk-reward profile remains attractive. The latest closing price for the US American Depositary Receipt was $82.28.