Daily Brief China: SHEIN Global Holdings, CXMT Corporation, Alibaba, BYD Company, Eastroc Beverage, Tencent, Chow Tai Fook Jewellery and more

• 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.

• CXMT closed its debut at Rmb49.00 (+466% from IPO, intraday high +531%), making it China’s most valuable listed company on Rmb100bn+ turnover.
• A 6.73% free float and 462.85x oversubscription explain the pop better than fundamentals do; professional allocation holders sold immediately, and P/B–ROE now sits off the chart.
• We move to BEARISH, TP unchanged at Rmb11.65 — a valuation-gap call, not a business downgrade: spot is 4.2x our TP and 3.4x even our bull case.

• Indonesia’s Mother & Baby e-commerce category grew 36% year on year in Q1 2026 to roughly 20 trillion IDR across the three platforms Cube tracks inTradewinds: Shopee, TikTok Shop, and Lazada.
• Shopee still commands the category with a 69% share, but TikTok Shop is the fastest-rising force, and Baby personal care is where the shift is most visible.
• Here is what the data says, and what brands should do about it.

• SHEIN Global Holdings Limited is a global online fashion and lifestyle company serving approximately 273 million active customers in 160 markets in 2025, pioneering a proprietary LATR operating model.
• SHEIN is the largest online fashion destination globally in 2025, with 273 million active customers and US$41.8 billion net revenues, achieving US$2,064 million net income.
• Net revenues were US$41,847 million in 2025, with net income of US$2,064 million. A net loss of US$99 million was recorded for the three months ended 31 March 2026.

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• SHEIN’s Q1 2026 net loss of $99 million was driven by a combination of a $328 million non-cash fair-value charge on convertible preferred shares and a 14.3% year-over-year decline in U.S. revenue to $2.04 billion, directly triggered by the Trump administration’s May 2025 removal of the de minimis duty-free exemption.
• The core LATR (Large-scale Automated Test and Reorder) model is highly sensitive to cross-border logistics costs. Imposing U.S. tariffs ranging from 10% to 87.5% on direct-to-consumer parcels destroys the unit economics of shipping micro-batches (100–200 units) from China, forcing price increases of 20% to 30% that alienate its core Gen Z base.
• Competition with Temu has descended into an unsustainable “stop-start” marketing war, with both players whipsawing ad auctions—such as Temu cutting U.S. ad spend by 51% in March 2026 before ramping back up—while struggling with low 5% conversion rates compared to Amazon’s 12%.

• BYD is also making an inroad towards intelligence driving, democratizing LIDAR but also made The World’s First Dual “Full Damage Coverage” Pledge.  
• 2026 1H was marked with a combination of a slow 1Q and a more promising 2Q thanks to new model launch and growing export business. 
• BYD Company (1211 HK) is trading at 6.5x EV//EBITDA while still being the largest EV makers globally. 

• Eastroc Beverage (9980 HK) (EB), a China-based functional beverage company, raised around US$1.3bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.
• According to Frost & Sullivan (F&S), EB has been the largest functional beverage company in China in terms of sales volume for four consecutive years since 2021.
• In this note, we will talk about the lockup dynamics and possible placement.

• 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.

• Context: Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Highlights: Diagonal spreads accounted for 31% of observed trades, supported by an inverted term structure leading into earnings.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies.

• In this insight we discuss about Chow Tai Fook Jewellery (1929 HK)’s remarkable growth in Q1FY2027 detailing about the various aspects of this growth.
• We also discuss what is the signs of change in product mix and how it may impact the financials in coming period.
• Finally, we provide our view on near term performance along with valuation table.