In today’s briefing:
- SHEIN Global IPO: The Bull Case
- Aequitas: Shein – The Positive – Global Reach
- Boqian New Materials (博迁新材) A+H Pre-IPO: Early Thoughts
- Tencent (700 HK) Tactical Outlook UPDATE: Rally Profit Targets
- SHEIN IPO: Twice Rejected, Still Underpriced
- Pre-IPO SHEIN Global Holdings (PHIP Updates) – Some Points Worth the Attention
- China Optoelectronics: Powering AI’s Voracious Bandwidth Needs
- Aequitas: Shein – The Negatives – Controversies, Down Rounds, Cash Payouts & Earning as Well.
- Aequitas: Huizhou Desay SV A/H Listing – Decent Financials Despite Poor Sentiments
- Huizhou Desay Sv Automotive (002920 CH): Synthetic Expert Call Transcript (28 Jul 2026)
SHEIN Global IPO: The Bull Case
- 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.
Aequitas: Shein – The Positive – Global Reach
- 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.
Boqian New Materials (博迁新材) A+H Pre-IPO: Early Thoughts
- Boqian New Materials, a high-end electronic metal powders manufacturer, is seeking an A+H listing. GTJA is the sole sponsor.
- We look at the company’s core segments: nickel-based powders for MLCC electrodes and copper-based powders for PV metallization.
- We discussed our preliminary thoughts on the company’s valuation based on A-H premium.
Tencent (700 HK) Tactical Outlook UPDATE: Rally Profit Targets
- Tencent (700 HK) is scheduled to report its H1 / Q2 2026 financial results on August 11–12, 2026. In our recent insight (July 17) we signaled a BUY opportunity.
- There has been some bottoming process and the PROFIT TARGETS have been reset on our model.
- This insight updates the profit targets for a rally that may be starting from the current lows. Consensus ratings remains overwhelmingly bullish: “Buy” or “Strong Buy”.
SHEIN IPO: Twice Rejected, Still Underpriced
- 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.
Pre-IPO SHEIN Global Holdings (PHIP Updates) – Some Points Worth the Attention
- SHEIN, which previously operates on light-asset model of “cross-border direct mail”,has been forced to shift to heavy-asset model of “local fulfillment” (construction of overseas warehouses).This demands more precise inventory forecasting
- SHEIN’s net profit has continued to decline.YoY growth of global website traffic has dropped to single digits in June 2026, indicating that the global traffic boom has reached its peak.
- The peak valuation of ~US$100bn in 2022 would not be achievable, and valuation discount in IPO is inevitable. We think comfortable valuation could be 27.3-45.5x P/E based on 2026 forecast.
China Optoelectronics: Powering AI’s Voracious Bandwidth Needs
- A-Share optoelectronics names hold the largest single-country share of merchant optical transceivers; Innolight leads globally at CNY38.24bn FY25 revenue, with Eoptolink next at CNY24.84bn.
- AI has multiplied demand: Big-5 hyperscaler capex reached US$353bn in 2025, 2026 plans sum to roughly US$790bn, and the market is in year one of the 1.6T generation.
- The module leaders trade at roughly 27x forward earnings, the cheapest layer of their own supply chain; upstream chip, DSP, and EMS peers run 29-52x.
Aequitas: Shein – The Negatives – Controversies, Down Rounds, Cash Payouts & Earning as Well.
- SHEIN Global Holdings (SHEIN HK), 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 not-so-positive aspects of the deal.
Aequitas: Huizhou Desay SV A/H Listing – Decent Financials Despite Poor Sentiments
- Huizhou Desay Sv Automotive (002920 CH) , an intelligent automotive solutions provider, aims to raise around US$300m in its H-share listing.
- Huizhou Desay SV Automotive (DSV) is a global leading mobility and intelligent technology platform company.
- In this note, we talk about the company’s past performances.
Huizhou Desay Sv Automotive (002920 CH): Synthetic Expert Call Transcript (28 Jul 2026)
- Internationalization as a Margin and Survival Hedge: Desay SV’s planned USD 300 million H-share listing is a direct response to a saturated, low-margin domestic market. While 92.6% of its current revenue is domestic, the 27.3% gross margin generated by its RMB 2.41 billion in overseas sales dwarfs its declining domestic margins, making localized assembly in Spain and Mexico the primary target for capital allocation.
- Structural Gross Margin Compression: Overall gross margins have eroded from 24.6% in 2021 to 19.07% in 2025. This is driven by a software-to-hardware mismatch where Desay SV acts primarily as a low-margin hardware integrator (assembly/testing) with limited software monetization, combined with a rising share of low-margin contract manufacturing models for major EV players.
- Intelligent Driving ASP Collapse: The average sales price (ASP) of Desay SV’s smart driving products plummeted from RMB 856 to RMB 651 in a single year. Price wars waged by domestic OEMs, combined with high sourcing costs for Nvidia’s Orin chips and aggressive competition from Horizon Robotics and Huawei, have structurally capped the profitability of its high-level ADAS domain controllers.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
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