HK Stock Market Move | SHEIN-W (00625) rises over 5%, to invest EUR500 million in building a logistics center in Poland; falling oil prices will help profit rebound.

SHEIN-W (00625) rose over 5%, up 5.06% as of press time to HK$40.7, with turnover of approximately HK$138 million. On the news front, SHEIN said it will invest EUR500 million (US$562 million) to expand its European logistics hub in Poland to achieve faster delivery speeds and greater operational flexibility. In addition, SHEIN recently agreed to pay US$100 million to settle a US FTC investigation into delivery delays and consumer complaints, an amount roughly equivalent to 44% of its profit in the second quarter of this year. In the first quarter of this year, the company was mainly affected by US tariffs, and in the second quarter it was mainly affected by rising oil prices and freight costs caused by the Iran conflict; adjusted net profit fell 55.6% year on year. Guosen believes that demand in the US and European markets is expected to recover successively, and a decline in oil prices would help profit rebound. The current abundant cash on hand and potential future recovery elasticity are highly attractive.