Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>SHEIN's cash conversion cycle is -46.5 days and widening — suppliers (108.6 payable days) and prepaying customers fund growth, while gross margin hit 67.9%, the highest among fashion peers.</li>
<li>Revenue growth fell to 1.1% as US tariffs bit, but adjusted net profit (stripping preferred-share accounting) still fell 42% YoY — real margin compression from marketing costs, not just optics.</li>
<li>We think fair value US$50bn (+11% vs target midpoint), as 1.19x sales still undervalues SHEIN versus Inditex's 4.6x despite superior margins and cash generation.</li>
</ul>


SHEIN's cash conversion cycle is -46.5 days and widening — suppliers (108.6 payable days) and prepaying customers fund growth, while gross margin hit 67.9%, the highest among fashion peers.
Revenue growth fell to 1.1% as US tariffs bit, but adjusted net profit (stripping preferred-share accounting) still fell 42% YoY — real margin compression from marketing costs, not just optics.
We think fair value US$50bn (+11% vs target midpoint), as 1.19x sales still undervalues SHEIN versus Inditex's 4.6x despite superior margins and cash generation.


SHEIN IPO: Twice Rejected, Still Underpriced

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.

Equity Capital Markets

SHEIN Global Holdings / Equity Capital Markets

<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>Shein is the largest online fashion destination globally as measured by apparel and footwear retail sales value in 2025.</li>
<li>The bull case rests on scale and cost advantages that are hard to replicate, robust order growth, the largest geographic segment not being constrained by tariff politics, and cash generation. </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.
Shein is the largest online fashion destination globally as measured by apparel and footwear retail sales value in 2025.
The bull case rests on scale and cost advantages that are hard to replicate, robust order growth, the largest geographic segment not being constrained by tariff politics, and cash generation. 


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<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> (SHEIN), a global online fashion and lifestyle company, aims to raise up to US$3bn in its Hong Kong listing.</li>
<li>Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.</li>
<li>In this note, we talk about the positive aspects of the deal.</li>
</ul>



SHEIN Global Holdings (SHEIN HK) (SHEIN), a global online fashion and lifestyle company, aims to raise up to US$3bn in its Hong Kong listing.
Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.
In this note, we talk about the positive aspects of the deal.


Aequitas: Shein - The Positive - Global Reach

HK/China Equity Long-Short

Osbert Tang, CFA

<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> aims to raise HK$15.7-23.5bn in its upcoming HK IPO and has passed the listing committee hearing. It recorded losses of US$99m in 1Q26. </li>
<li>Key positives are its leadership position with global presence, excellent brand portfolio with comprehensive offerings, and unique operating model and end-to-end intelligent supply chain.</li>
<li>Key negatives are its exposure to regulatory and tariff uncertainties, geopolitical and supply chain scrutiny, and challenges from intensifying competition.</li>
</ul>



SHEIN Global Holdings (SHEIN HK) aims to raise HK$15.7-23.5bn in its upcoming HK IPO and has passed the listing committee hearing. It recorded losses of US$99m in 1Q26. 
Key positives are its leadership position with global presence, excellent brand portfolio with comprehensive offerings, and unique operating model and end-to-end intelligent supply chain.
Key negatives are its exposure to regulatory and tariff uncertainties, geopolitical and supply chain scrutiny, and challenges from intensifying competition.


SHEIN Global Pre-IPO: Key Positives and Negatives

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>SHEIN, a global online fashion and lifestyle retailer, has passed the HKEX listing hearing. GS, MS, and JPM are the joint sponsors.</li>
<li>We look at the company's core segments: apparel and non-apparel.</li>
<li>We then look at the company's financial profile, profit decline, pre-IPO valuation and investor backing.</li>
</ul>


SHEIN, a global online fashion and lifestyle retailer, has passed the HKEX listing hearing. GS, MS, and JPM are the joint sponsors.
We look at the company's core segments: apparel and non-apparel.
We then look at the company's financial profile, profit decline, pre-IPO valuation and investor backing.


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)

SHEIN IPO: Twice Rejected, Still Underpriced

SHEIN lists ~1.1x sales after a 54% cut — cheapest fashion multiple despite the best margin. BULLISH, FV US$50bn. Europe's tariff hit is the swing...

Mo Aziz

SHEIN Global IPO: The Bull Case

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

Arun George

Aequitas: Shein - The Positive - Global Reach

SHEIN Global Holdings (SHEIN HK), a global online fashion and lifestyle company, aims to raise up to US$3bn in its Hong Kong listing. In this note,...

Sumeet Singh

SHEIN Global Pre-IPO: Key Positives and Negatives

SHEIN Global Holdings plans HK IPO, facing challenges from losses, regulatory uncertainties, and competition, but touts strong global presence and...

Osbert Tang, CFA

SHEIN (希音) Pre-IPO: Tearsheet

SHEIN has passed the HKEX listing hearing. In this tearsheet, we look at the company's business and operating profile, its industry backdrop, its...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SHEIN IPO: Twice Rejected, Still Underpriced

SHEIN lists ~1.1x sales after a 54% cut — cheapest fashion multiple despite the best margin. BULLISH, FV US$50bn. Europe's tariff hit is the swing...

Mo Aziz

SHEIN Global IPO: The Bull Case

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

Arun George

Aequitas: Shein - The Positive - Global Reach

SHEIN Global Holdings (SHEIN HK), a global online fashion and lifestyle company, aims to raise up to US$3bn in its Hong Kong listing. In this note,...

Sumeet Singh

SHEIN Global Pre-IPO: Key Positives and Negatives

​SHEIN Global Holdings plans HK IPO, facing challenges from losses, regulatory uncertainties, and competition, but touts strong global presence and...

Osbert Tang, CFA

SHEIN (希音) Pre-IPO: Tearsheet

SHEIN has passed the HKEX listing hearing. In this tearsheet, we look at the company's business and operating profile, its industry backdrop, its...

Ke Yan, CFA, FRM

SHEIN Global Holdings plans HK IPO, facing challenges from losses, regulatory uncertainties, and competition, but touts strong global presence and...