Shein eyes a valuation rivalling H&M. Will the market buy it? | South China Morning Post

Advertisement IPO Business China Business Shein is eyeing a valuation rivalling H&M. Will the market buy it? Ahead of its Hong Kong IPO, the e-commerce firm argues its supply chains and business model give it an edge over traditional rivals 2 -MIN READ 2 -MIN Listen Zoe SL Chan Published: 2:13pm, 14 Aug 2026 Updated: 6:40pm, 14 Aug 2026 Online fast-fashion platform Shein believes it deserves a premium valuation comparable to that of industry peers like H&M, citing its business model and global customer base as major competitive advantages, according to internal documents provided to investors and seen by the South China Morning Post. The documents cited analysts as saying the market should view the company as a global fashion giant similar to Zara’s parent company Inditex and H&M, rather than as a regional Chinese brand. They also stated that an unnamed investment bank in the United States had projected Shein’s net profit would grow at a compound annual rate of 12 per cent between financial years 2025 and 2028, beating Inditex’s 9 per cent and H&M’s 4 per cent. The company stressed its “LATR” model – in which it tests products in small batches before scaling up production through its smart supply chain – as a core advantage. The approach delivers inventory turnover cycles of just 36 days, which Shein said far outperformed Inditex’s 71 days and the 114 days taken by Uniqlo parent company Fast Retailing. The documents further suggested that Shein deserved a valuation multiple that matched or exceeded those of Inditex and H&M, which typically have price-to-earnings ratios of 25 and 20, respectively. Shein plans to take investor orders for its Hong Kong initial public offering next week , targeting a valuation of over US$30 billion. If achieved, this would surpass H&M’s US$26 billion while remaining far below Inditex’s massive US$208 billion valuation, the SCMP reported earlier. Advertisement Select Voice Select Speed 0.8x 0.9x 1.0x 1.1x 1.2x 1.5x 1.75x 00:00 00:00 1.00 x