Firing on multiple cylinders; guidance revised up

Following strong 2Q delivery, Maybank Kim Eng reiterated buy and raised tp to USD96 from USD90.

GAAP 2Q revenues grew 23% YoY/2% QoQ and came 5% ahead of MIBG and 3% ahead of street. Adj. EBITDA declined 12% YoY but increased 12% QoQ and came 13% ahead of street expectations. All the operating segment revenues and Adj. EBITDA came ahead of expectations, except for financial services revenues which came 1-2% below.

Shopee GMV increased 29% YoY but declined 1% QoQ due to seasonality. This was 7%/3% ahead of MIBG/street.

Garena bookings increased 21% YoY/5% QoQ and came 6-7% ahead of MIBG/street est.

Shopee GMV guidance revised up to mid-20% YoY growth in 2024 (from high teens).