$Sea (SE.US)$ Phillip Securities maintain buy but reduce tp ...

Phillip Securities maintain buy but reduce tp to USD87 from USD100.

2Q23 revenue missed expectations marginally due to increased shipping subsidies. Earnings were in line. 1H23 revenue/PATMI was at 46%/103% our FY23e forecasts. They expect break-even in 2H23 due to increased incentives and investments.

Garena looks to have bottomed out, posting an 8% QoQ increase in operating income after 5 quarters, with an 11%/15% sequential uptick in QAU/QPU.