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>By executive order, President Trump suspended section 321 ("de minimis") imports on Feb 4th</li>
<li>Direct-To-Consumer imports valued at &lt; US$800 may no longer enter the US duty-free</li>
<li>Added cost and new paperwork burden (both borne by US consumers) to hit SHEIN, Temu</li>
</ul>


By executive order, President Trump suspended section 321 ("de minimis") imports on Feb 4th
Direct-To-Consumer imports valued at &lt; US$800 may no longer enter the US duty-free
Added cost and new paperwork burden (both borne by US consumers) to hit SHEIN, Temu


Trump Admin's Tariff Headlines Obscure Suspension Of "De Minimis" Rule | Big Impact on SHEIN, Temu

<ul>
<li>Over the last 25 months, there's been a steady stream of bad news for DTC platform SHEIN</li>
<li>The latest challenges: US tariff chaos &amp; Amazon's launch of its competing platform, Haul 
</li>
<li>Tariff changes &amp; growth of Haul could mean SHEIN IPO gets done at fraction of 2023 valuation</li>
</ul>


Over the last 25 months, there's been a steady stream of bad news for DTC platform SHEIN
The latest challenges: US tariff chaos &amp; Amazon's launch of its competing platform, Haul 

Tariff changes &amp; growth of Haul could mean SHEIN IPO gets done at fraction of 2023 valuation


It's Been a Tough Two+ Years for SHEIN & Its Investors, & Things Don't Get Easier From Here

<ul>
<li>SHEIN announced it wants a role in reforming US de minimis import regulations</li>
<li>A tightening of de minimis threshholds could undermine SHEIN (and Temu) in the US</li>
<li>The de minimis issue highlights SHEIN's and Temu's lack of political allies in the US</li>
</ul>


SHEIN announced it wants a role in reforming US de minimis import regulations
A tightening of de minimis threshholds could undermine SHEIN (and Temu) in the US
The de minimis issue highlights SHEIN's and Temu's lack of political allies in the US


Why SHEIN and Temu Are Worried About Reform of De Minimis Imports into the US

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shein-global-holdings" target="_blank" data-smartkarma-citation="entities:55372:1" rel="noopener">SHEIN Global Holdings (SHEIN HK)</a>, a global online fashion and lifestyle company, is pre-marketing a HKEx IPO to raise US$3 billion.</li>
<li>In <a href="https://www.smartkarma.com/insights/shein-global-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:248212" rel="noopener">SHEIN Global IPO: The Bull Case</a>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on a business model under severe strain, as reflected in rapidly declining growth, margin pressure, and down rounds. </li>
</ul>



SHEIN Global Holdings (SHEIN HK), a global online fashion and lifestyle company, is pre-marketing a HKEx IPO to raise US$3 billion.
In SHEIN Global IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on a business model under severe strain, as reflected in rapidly declining growth, margin pressure, and down rounds. 


<ul>
<li>Crucial US "de minimis" imports exemption will end this Thursday night, May 1st</li>
<li>Beginning May 2nd, low-value direct-to-US consumer imports subject to duties, reporting </li>
<li>For US consumers, buying from SHEIN et al set to become more expensive, more onerous</li>
</ul>


Crucial US "de minimis" imports exemption will end this Thursday night, May 1st
Beginning May 2nd, low-value direct-to-US consumer imports subject to duties, reporting 
For US consumers, buying from SHEIN et al set to become more expensive, more onerous


May 1st Marks End of US "De Minimis" Exemption that Has Enabled Growth of SHEIN, Temu, & AliExpress

Hong Kong

SHEIN Global Holdings Limited manufactures and distributes apparel products. The Company produces casual wear, loungewear, swimwear, sports apparel, and formal dress products. SHEIN Global Holdings conducts businesses in Mainland China and Hong Kong.

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SHEIN Global Holdings (625 HK)

Trump Admin's Tariff Headlines Obscure Suspension Of "De Minimis" Rule | Big Impact on SHEIN, Temu

Now that fast-fashion giant SHEIN has finally filed offering documents in Hong Kong, we believe it's a good time to revisit the company's recent...

Tracking Traffic

It's Been a Tough Two+ Years for SHEIN & Its Investors, & Things Don't Get Easier From Here

Now that fast-fashion giant SHEIN has finally filed offering documents in Hong Kong, we believe it's a good time to revisit the company's recent...

Tracking Traffic

Why SHEIN and Temu Are Worried About Reform of De Minimis Imports into the US

Now that fast-fashion giant SHEIN has finally filed offering documents in Hong Kong, we believe it's a good time to revisit the company's recent...

Tracking Traffic

SHEIN Global IPO: The Bear Case

SHEIN, a global online fashion and lifestyle company, is pre-marketing an HKEx IPO to raise US$3 billion. In this note, I discuss the bear case.

Arun George

May 1st Marks End of US "De Minimis" Exemption that Has Enabled Growth of SHEIN, Temu, & AliExpress

Now that fast-fashion giant SHEIN has finally filed offering documents in Hong Kong (July 27), we believe it's a good time to revisit the company's...

Tracking Traffic

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