Sea's Fair Value Estimate Cut by 17% on Higher Costs for Retention at Shopee and Investment at Monee

We expect Shopee to be Sea’s main valuation driver for the long term. E-commerce as a percentage of retail sales was 4%-29% in major Southeast Asian economies as of August 2025 as per eMarketer, behind China's 52% and the UK's 31%, leaving ample room for incumbents and new entrants to expand. We expect Shopee’s gross merchandise volume in Southeast Asia, Taiwan, and Latin America to grow at a 16% compound annual growth rate during 2025-34.