Daily Brief Consumer: SHEIN Global Holdings, China Yuchai International, Tesla , Jerash Holdings US , Shimano Inc, McCormick & Company, Oriental Food Indust Hldgs and more

• 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. 

• 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.

• Yuchai’s HHP capacity expansion is going as planned, with supply chain changes helping boost capacity.
• As previously noted, this expansion should result in a sizable boost to 2026 results. This excludes the engines available from MTU.
• Work is progressing on the MGP listing in Hong Kong, but any future updates will come as disclosed via the Hong Kong Stock Exchange.

• Tesla (TSLA US) reported a sharp contrast between revenue growth and margin erosion. The statewide approval is efficient, but it will not happen next year either. 
• The management warned of high CapEx that will keep free cash flow under pressure. 
• No indication of turnaround yet; thus, it is not too late to short the stock. 

• Jerash Holdings offers a compelling value and dividend proposition, underscored by its strategic position as a key apparel manufacturer in Jordan with duty-free access to the U.S. market.
• A recent financial turnaround, marked by record annual revenue and a return to profitability in fiscal year 2026, signals positive operational momentum and improved production efficiencies.
• Significant risks remain, including high customer concentration, the inherent cyclicality of the apparel industry, and geopolitical instability in the Middle East, which could impact future performance.

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• Strong 1H beat driven by forex gains and fishing outperformance; full-year operating income guidance unchanged as 2H faces Middle East cost headwinds.
• Bicycle inventory overhang in Europe and China persists, though 2Q showed early signs of stabilisation; fishing tackle momentum remains robust.
• Valuation broadly in line with historical averages; we maintain our mildly bullish view.

• 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.

• McCormick is the global leader in the spices and seasonings market, possessing a strong portfolio of brands including McCormick, French’s, and Frank’s RedHot, which provides significant brand equity and pricing power.
• The company is navigating a challenging environment of soft consumer volumes and cost inflation, relying on pricing actions and productivity savings to drive modest organic growth and margin expansion.
• Activist investor involvement and a potential transformative combination with Unilever’s Foods business introduce both significant opportunities for value creation and considerable integration and execution risks.

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• Revenue mix between exports and domestic sales remain steady (60% and 40%)
• The company has completed a three-storey factory block and warehouse, which will lead to the installation of a new biscuit line.
• The company talked about production efficiency and new product launches both for local and export markets.

• 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.