0819 GMT - The sharp decline in Shein's valuation reflects its slower growth, greater competition and higher regulatory risks, according to Saxo Market's Charu Chanana in a research note. Higher tariffs, and a very different market environment compared with four years ago also contributed to the lower valuation, the chief investment strategist says. The near-term share-price performance is particularly difficult to predict, but there are some supportive factors, she says. For example, the valuation has been cut substantially and the initial public offering has attracted large cornerstone investors, she notes. That said, investors might scrutinize revenue growth, margins and cash generation and the impact of U.S. tariffs to get more clues on the company's health, she says.
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