Shein估值腰斩拟赴港IPO，关税致利润暴跌

Walk through the central shopping district here in Hong Kong, and it's easy to spot the big name brands like Zara or H&M that you don't often see Shin back in 2022. The Chinese fashion retailer was the largest globally, even though it sells mostly online. But fast forward four years and it's a whole different story. Shin's valuation hit $100 billion at its peak. Now it's said to be targeting just a quarter of that. We had actually priced, um, Shin owned 13 to 15 times, um, 2027 PE.

And really that actually just works out to about 822 225 billion market valuation. It's going to be a struggle to actually try and reach the 30 billion. A big reason Trump's tariffs. The de minimis exemption allowed small parcels below $800 to enter the US duty free when the Trump administration closed that loophole. Europe followed suit and went further to impose a €3 customs duty on low value commerce imports starting July 1st.

She was forced to adapt its business model. Instead of shipping goods directly from merchants to consumers. It had to invest in warehouses and bundled products into larger consignments. Costs went up. Sales slowed down. The peak valuation that's behind us. The peak work is behind us. I mean, if you if you if you look at it, you know, before the regulations came into place, the margin was excellent, was phenomenal. After migration came place, the margins just collapsed because they're spending more to sell more.

Sheen's net income in 2025 fell nearly 40% on year, with losses in the first quarter of this year. This is probably the worst of the decline that we've actually seen in 2026. Unforeseen. The declines will likely narrow, um, as we move, um, into 2027 and possibly, um, be in a positive territory assuming, you know, fulfillment, cost, etc. actually comes in in line with what we are looking at. She has tried not once, not twice, but three times to list first in New York, then in London, and now here in Hong Kong.

In the US, lawmakers accuse machine of using cotton from Xinjiang, blocking the IPO. In the UK, an NGO mounted a legal challenge against forced labour, an allegation she denies. Finally, it secured Beijing's blessing for a Hong Kong listing. Now she is diversifying its portfolio. It acquired a premium sustainable brand called Everlane in May, marking a shift from disposable, fast fashion to a higher margin business model.

She has to compete for capital in a market crowded with tech startups. Its Hong Kong debut will tell us if it's successful in convincing investors that its strategic pivot will pay off. Then, in low number news Hong Kong.