STOCKS TELEGRAPH

Tag: RLX stock price

  • RLX Technology Inc. (RLX) declined in the pre-market; here is why?

    RLX Technology Inc. (RLX) declined in the pre-market after announcing its unaudited fourth quarter and fiscal 2021 results. RLX values at $2.03, losing more than 13.25% compared to yesterday’s closing price. The stock closed at $2.34 at the end of the last trading session. The stock volume traded in the previous trading session was around 6.96 million shares. The current market cap of the company is about $3.15 billion.

    RLX: Q4 and Fiscal 2021 Key Financials

    • RLX Technology Inc.’s revenue in Q4 2021 was RMB1,904.4 million. It is an increase of 17.7% compared to the revenue of RMB1,618.5 million in Q4 2020.
    • Fiscal 2021 revenue was RMB8.5 billion, more than the revenue of RMB3.8 billion in fiscal 2020.
    • The company’s net income in Q4 2021 was around RMB494 million, compared to the net loss of RMB236million in Q4 2020.
    • RLX’s net income in fiscal 2021 was around $2.02 billion, and profitability increased massively compared to the net loss of $128 million in fiscal 2020.
    • The company’s basic and diluted earnings per share in Q4 were RMB 0.367, compared to the net loss of RMB 0.165.
    • RLX’s EPS in fiscal 2021 is RMB 1.445 compared to the loss per share of RMB 0.089 in fiscal 2020.

    RLX CEO’s Remarks

    CEO Ying (Kate) Wang of RLX Technology said in the fourth quarter of 2021. We delivered strong operational and financial results. Our focus throughout the year was on streamlining distribution and retail channels, investing in scientific research, new product development, and digitalization upgrades. Revenue increased by 123.1% in fiscal 2020, further solidifying our position as an adult smokers’ favorite e-vapor brand. With this in mind, we are confident in the Company’s ability to grow in 2022 and beyond.

    Conclusion

    The company sales increased due to the online distributors. RLX is focusing on revenue growth and market share, due to which they are not focusing on profitability. Profitability is the second phase of such a growth strategy.

  • RLX Technology Inc. (RLX) stock rises in the Pre-Market today: What’s going on?

    RLX Technology Inc. (RLX) stock rises in the Pre-Market today: What’s going on?

    Shares of RLX Technology Inc. (RLX) stock rose in the pre-market trading session today after facing a downtrend in the last trade. RLX stock price saw an uptrend of 2.80% to reach $8.80 a share as of this writing. There is no particular news or announcement linked with RLX to justify this rally. So here is what you need to know.

    What’s happening?

    RLX Technology along with its subsidiaries working on the research, development, manufacturing as well as distribution, and selling of e-vapor products in China. The current rally of RLX is not backed up by any news or earning report by the RLX stock. Also, there are no signs of analyst upgrades or social media hype to justify the bull. This is something unusual behavior which investors usually see in the stock market for many stocks.

    Financial View of RLX stock:

    We find no news about RLX stock in April but on March 26, 2021, RLX announced its fourth-quarter and full-year financial results of 2020 the summary of which is given below.

    In the fourth quarter ended on December 31, 2020, RLX generated RMB1,618.5 million net revenue which surpassed the net revenue of the third quarter by 44.5%. The gross margin was surged to 42.9% as compared to 39.1% in the third quarter.RLX recorded a net loss of RMB236.7 million in the fourth quarter while the net income was RMB7.8 million in the prior quarter.

    Net revenue for the full year 2020 increased significantly by 146.5% to RMB3,819.7 million as compared to RMB1,549.4 million in 2019. Gross margin reached 40.0% as compared to 37.5% in 2019 and the net loss was RMB128.1 million for the RLX stock in 2020. The estimated revenue for the fiscal year 2021 is more than RMB2.3 billion while more than RMB590 million is estimated for non-GAAP net income.

    RLX stock has beaten the analyst estimate according to the earnings report.RLX posted Q4 earnings of$0.05 per share while the consensus estimate was $0.04 per share.RLX reported a loss of RMB0.029 per share in the same tenure of last year.

    Conclusion:

    RLX stock is enjoying the bullish sentiment in the stock market despite the absence of any news related to it. Such behavior of the stock usually doesn’t last for long. Earnings report showed the growth of RLX stock over the year in terms of revenue. In a nutshell, a deep fundamental, as well as technical analysis, would be good practice for investors eyeing this stock.

  • Why RLX Technology Inc. (RLX) stock is falling today?

    Why RLX Technology Inc. (RLX) stock is falling today?

    Shares of RLX Technology Inc. (RLX) fell over 41.11%. RLX stock price was down by 33.61% to drop $12.92 a share at the time of this writing. It seems that RLX stock happened to be down after the spread of the news that Chinese regulators are planning to introduce laws to govern the sales of e-cigarettes in line with ordinary cigarettes.RLX stock was green at the previous closing with a gain of 4.85% and  $19.46 per share price. Let’s dive deeply to explore the current scenarios.

    What’s happening?

    Two of China’s regulators namely, the Ministry of Industry and Information Technology (MIIT) and China’s State Tobacco Monopoly Administration recently posted the draft that explains the rules and regulations for the sale of E-cigarettes. These new laws might affect the sales of E-cigarettes as well as other tobacco products thus lowering the potential revenue in this fastest growing industry.

    In 2019, the Chinese regulators had forbidden the sale of e-cigarettes through an e-commerce platform that greatly affected the growth of this business and many brands in response to that restriction shifted themselves from online seller to offline seller.

    In the first week of March 2021, RLX appointed Professor Youmin Xi to be an independent director to its board of directors. Professor Youmin is now serving as a member of the audit committee, compensation committee, and corporate governance committee of RLX Technology’s board.

    About RLX Technology

    RLX Technology Inc. (RLX) is the leading brand of e-vapors products in the People’s Republic of China.RLX operating areas include research, development, manufacturing, and distribution of e-vapors products in China. RLX Technology is founded in 2018 and headquartered in Beijing, China.

    Conclusion:

    The recent news about the governing laws for the sale of e-cigarettes and other tobacco products has added pain to the RLX stock as RLX Technology stock fell more than 41.11% in Monday’s current market session. Let’s see how the RLX management will react to this situation and its fourth quarter and fiscal year 2020 results to be announced on March 26, 2021, will further decide the fate of the stock.