After plunging more than 10% yesterday, SHEIN-W (00625) fell over 3% again this morning, down 3.11% as of press time to HK$30.52, with turnover of HK$11.2867 million.

On the news front, SHEIN recently released its first interim results since listing, with first-half 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, while adjusted net profit was US$228 million, down 66.6% year-on-year.

On the expense side, the company's second-quarter fulfillment expenses were US$5.587 billion, up 18% year-on-year, with the fulfillment expense ratio rising to 50.4%. The rapid increase was mainly attributed to higher oil prices, increased freight costs, and a greater proportion of the marketplace model.

In addition, second-quarter net revenue in Europe fell 13.9% year-on-year to US$3.77 billion; US net revenue dropped 6% to US$2.474 billion, with the year-on-year decline narrowing significantly compared with the first quarter. A Jefferies research report noted that SHEIN's first-half revenue was in line with expectations, but the deterioration in regional mix and pressure on profit margins were the main focus. It believes there is still downside room for 2026-2027 market consensus estimates, and cut its target price from HK$26 to HK$23, maintaining an "underperform" rating.