HK Stock Market Move | SHEIN-W(00625) falls nearly 6% intraday; H1 adjusted net profit halved; tariff headwinds and logistics cost volatility may persist.

SHEIN-W(00625) fell nearly 6% intraday, down 4.12% as of press time at HK$33.08, with turnover of HK$36.2158 million. On the news front, in the first half of this year, SHEIN recorded net revenue of US$20.134 billion, up only 1% year-on-year; adjusted net profit was US$499 million, down 55.6% year-on-year. Looking at the second quarter alone, net revenue was US$11.082 billion, up 0.9% year-on-year, and adjusted net profit was US$228 million, down 66.6% year-on-year. The company expects the external environment to remain full of uncertainty in the second half of this year, with tariff headwinds and logistics cost volatility likely to persist. Nevertheless, the fourth quarter remains the most important promotional window and is expected to drive a significant increase in order volume. Jefferies believes that SHEIN's first-half revenue was in line with expectations, but the deterioration in regional mix and pressure on profit margins are the main focus, and it sees further downside room for 2026-2027 market consensus estimates. It lowered its target price from HK$26 to HK$23 and maintained its "Underperform" rating. The bank expects the market to initially cut 2026-2027 earnings forecasts by about 15-20% and 10-15% respectively, with a second round of downgrades to follow after third-quarter 2026 results confirm weakening European operations.