STOCKS TELEGRAPH

Tag: RLX Technology Inc

  • RLX Technology Inc. (RLX) stock on a Bullish Roll Premarket. What is Happening?

    On March 16, RLX Technology Inc. (RLX) stock continued its bullish roll in the premarket. At the last check, the stock had advanced by a further 24.56%. There is no official announcement or SEC filing behind the bullish momentum of the stock while it has been bullish since yesterday.

    In the previous trading session, the stock rebounded from a downtrend to add a huge 40.16%. The session saw an active trading volume of 82.07 million shares, which was 757% of the average. At the close of the session, the stock had a value of $1.71 per share. At the time of writing, RLX was trading at $2.13 per share in the premarket, on Wednesday.

    The China-based holding company, RLX Technology Inc. deals in e-vapor products.

    What is happening?

    Chinese tech stocks have had a bearish sentiment as of recently due to the ongoing Russia-Ukraine conflict. Speculations of China’s relationship with Russia and concerns regarding potential support for the invasion have been afloat in the market. Such speculations have been rising fear among investors towards Chinese stocks as the threat of new sanctions looms overhead. Added to this, lockdowns and measures were also taken due to a recent Covid-19 surge in the country. While the market condition was enough for RLX to remain on a bearish path, the company’s latest earnings disappointed investors further. The company posted its 2021 financials on March 11, which caused a further dip in the stock.

    Therefore, after falling down over 31.87% in the past five days, RLX finally rebounded on March 14. With no recent news from the company, the stock seems to be recovering as investors are buying the dip. So far, the stock has continued to rise in the premarket today, as well.

    RLX’s 2021 Financials

    Source: Insurance Business

    Net Revenues

    The company reported net revenues of RMB1,904.4 million (US$298.8 million) for Q4 and RMB8,521.0 million (US$1,337.1 million) for fiscal 2021. This represents a respective growth of 17.7% and 123.1% YOY for Q4 and fiscal 2021.

    Net Income

    RLX had a net income of RMB536.5 million (US$84.2 million) in Q4 2021, against RMB419.3 million in the year-ago period.

    Moreover, the non-GAAP net income was RMB2,251.5 million (US$353.3 million) for fiscal 2021, against RMB801.0 million in fiscal 2020.

    Gross Margin

    The company reported a gross margin of 40.2% for Q4 and 43.1% for fiscal 2021. Comparatively, the company had a gross margin of 42.9% and 40.0% in Q4 and fiscal 2020, respectively.

  • 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.