3 articles · Updated · South China Morning Post · Aug 14
Summary
Internal documents show Shein is pitching investors for a Hong Kong IPO valuation in line with or above H&M and Inditex, arguing it should be treated as a global fashion group rather than a Chinese brand.
A U.S. investment bank forecast seen in the documents projects Shein's net profit will grow at a 12% compound annual rate from 2025 to 2028, ahead of Inditex's 9% and H&M's 4%.
Shein says its LATR model—testing products in small batches before scaling production—drives a 36-day inventory turnover cycle, versus 71 days at Inditex and 114 at Fast Retailing.
The pitch implies Shein merits price-to-earnings multiples matching or exceeding Inditex's roughly 25 and H&M's 20 as it tries to win support for the listing.