Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

SHEIN Global Holdings / Equity Capital Markets

<ul>
<li>In this insight we analyze SHEIN's Marketing expenses, which rose sharply in FY25 and Q126</li>
<li>We also revisit SHEIN's Fulfilment expenses, which likely ballooned in Q226 on higher fuel</li>
<li>We believe high and rising Marketing, Fulfilment expenses to smother FY26 margins</li>
</ul>


In this insight we analyze SHEIN's Marketing expenses, which rose sharply in FY25 and Q126
We also revisit SHEIN's Fulfilment expenses, which likely ballooned in Q226 on higher fuel
We believe high and rising Marketing, Fulfilment expenses to smother FY26 margins


SHEIN IPO in Hong Kong: Examining Marketing Expense Trend | Fulfilment Expense in Q226 Likely Spiked

<ul>
<li>SHEIN's new IPO filing in Hong Kong shows the company recording a Net Loss in Q126</li>
<li>A sharp increase in Q126 fulfilment costs helps to explain the period's weaker profitability</li>
<li>SHEIN's ability to rein in unit fulfilment costs should be a key driver of long-term performance</li>
</ul>


SHEIN's new IPO filing in Hong Kong shows the company recording a Net Loss in Q126
A sharp increase in Q126 fulfilment costs helps to explain the period's weaker profitability
SHEIN's ability to rein in unit fulfilment costs should be a key driver of long-term performance


SHEIN IPO in Hong Kong: Quick P&L Review and Why Managing Unit Fulfilment Costs Matters So Much

Equity Bottom-Up

<ul>
<li>H126 revenue up 6%, but EBITDA margin softened by around 50 bps versus H125</li>
<li>We believe higher fuel costs and a change in revenue mix explain margin compression</li>
<li>SF Hldg: cheap, but absent a potential boost from lower fuel, near-term seems unexciting</li>
</ul>


H126 revenue up 6%, but EBITDA margin softened by around 50 bps versus H125
We believe higher fuel costs and a change in revenue mix explain margin compression
SF Hldg: cheap, but absent a potential boost from lower fuel, near-term seems unexciting


SF Holding H126: Revenue up 6% Y/Y, but EBITDA Margin Down on Rising Fuel Costs, Changing Mix

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>BABA/002352.SZ/1519.HK: Taobao/Tmall adjusts algorithm to favor merchants with better service capabilities (+/+/-)</li>
<li>3690 HK: Meituan QuanQuan shift from direct operating into third party operating, and cut nearly 200 BD job positions(+)</li>
<li>700 HK/259960 KRX:The development team of &lt;PUBG&gt; has unveiled its major game update plan for 2024.(+)  </li>
</ul>


BABA/002352.SZ/1519.HK: Taobao/Tmall adjusts algorithm to favor merchants with better service capabilities (+/+/-)
3690 HK: Meituan QuanQuan shift from direct operating into third party operating, and cut nearly 200 BD job positions(+)
700 HK/259960 KRX:The development team of &lt;PUBG&gt; has unveiled its major game update plan for 2024.(+)  


[Blue Lotus Daily - TMT Update]:BABA/002352 SZ/1519 HK/3690 HK/META/700 HK/259960 KRX

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

<ul>
<li>Coffee Industry: Cotti Coffee promote the application of commercial robots, which we deemed as a gimmick (+)</li>
<li>1211 HK/300750 CH/ QS:US solid start battery startup posted positive test result and stock rose 40% (/)</li>
<li>2618 HK/ZTO/002352 CH/600233 CH/1519 HK/002120 CH/002468 CH: MOT announces new regulations on express parcel delivery (+/+/-/-/-/-/-)</li>
</ul>


Coffee Industry: Cotti Coffee promote the application of commercial robots, which we deemed as a gimmick (+)
1211 HK/300750 CH/ QS:US solid start battery startup posted positive test result and stock rose 40% (/)
2618 HK/ZTO/002352 CH/600233 CH/1519 HK/002120 CH/002468 CH: MOT announces new regulations on express parcel delivery (+/+/-/-/-/-/-)


[Blue Lotus Daily]: LKNCY/0000625 CH/1211 HK/300750 CH/QS/NIO/LI/2618 HK/ZTO/002352 CH/600233 CH

China

S.F. Holding Co., Ltd operates as a holding company. The Company, through its subsidiaries, provides logistics, order tracking, supply chain management, and warehousing services. S.F. Holding operates worldwide.

Price Gauge
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S.F. Holding (002352 CH)

SHEIN IPO in Hong Kong: Examining Marketing Expense Trend | Fulfilment Expense in Q226 Likely Spiked

In its first day of trading on September 1, SHEIN's shares closed down 0.1% in Hong Kong after initially falling close to 10%. We're re-surfacing a...

Tracking Traffic

SHEIN IPO in Hong Kong: Quick P&L Review and Why Managing Unit Fulfilment Costs Matters So Much

In its first day of trading on September 1, SHEIN's shares closed down 0.1% in Hong Kong after initially falling close to 10%. We're now re...

Tracking Traffic

SF Holding H126: Revenue up 6% Y/Y, but EBITDA Margin Down on Rising Fuel Costs, Changing Mix

SF Holding's H126 results were uninspiring, with Revenue climbing 6% but margins falling vs H125. We believe high fuel costs and changing sales mix...

Tracking Traffic

[Blue Lotus Daily - TMT Update]:BABA/002352 SZ/1519 HK/3690 HK/META/700 HK/259960 KRX

Major e-commerce platforms adjust algorithms for better merchant service, Meituan shifts to third-party operations, PUBG announces major game...

Blue Lotus Research Institute

[Blue Lotus Daily]: LKNCY/0000625 CH/1211 HK/300750 CH/QS/NIO/LI/2618 HK/ZTO/002352 CH/600233 CH

Cotti promotion of commercial robots in the coffee industry. A battery startup had a positive test result, leading to a 40% rise in stock. MOT...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SHEIN IPO in Hong Kong: Examining Marketing Expense Trend | Fulfilment Expense in Q226 Likely Spiked

In its first day of trading on September 1, SHEIN's shares closed down 0.1% in Hong Kong after initially falling close to 10%. We're re-surfacing a...

Tracking Traffic

SHEIN IPO in Hong Kong: Quick P&L Review and Why Managing Unit Fulfilment Costs Matters So Much

In its first day of trading on September 1, SHEIN's shares closed down 0.1% in Hong Kong after initially falling close to 10%. We're now re...

Tracking Traffic

SF Holding H126: Revenue up 6% Y/Y, but EBITDA Margin Down on Rising Fuel Costs, Changing Mix

SF Holding's H126 results were uninspiring, with Revenue climbing 6% but margins falling vs H125. We believe high fuel costs and changing sales mix...

Tracking Traffic

[Blue Lotus Daily - TMT Update]:BABA/002352 SZ/1519 HK/3690 HK/META/700 HK/259960 KRX

​Major e-commerce platforms adjust algorithms for better merchant service, Meituan shifts to third-party operations, PUBG announces major game...

Blue Lotus Research Institute

[Blue Lotus Daily]: LKNCY/0000625 CH/1211 HK/300750 CH/QS/NIO/LI/2618 HK/ZTO/002352 CH/600233 CH

​Cotti promotion of commercial robots in the coffee industry. A battery startup had a positive test result, leading to a 40% rise in stock. MOT...

Blue Lotus Research Institute

Major e-commerce platforms adjust algorithms for better merchant service, Meituan shifts to third-party operations, PUBG announces major game...

Cotti promotion of commercial robots in the coffee industry. A battery startup had a positive test result, leading to a 40% rise in stock. MOT...