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RLX Technology
(NYSE:RLX)
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Rating:73Outperform
Price Target:
$2.00
▼(-7.83% Downside)
Action:Reiterated
Date:07/11/26
RLX scores well on financial strength (notably its very low leverage) and a positive earnings-call read-through with strong recent growth and improving margins. The main constraints on the overall score are mixed cash-flow momentum and a weaker technical setup (below key longer-term moving averages with only neutral momentum), while valuation is supportive due to a moderate P/E and a high dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage and a large equity base provide durable financial flexibility. This conservatism supports investment in R&D, Nexus operations, selective M&A, and distributor support without forcing asset sales or dilutive financing, reducing insolvency and regulatory stress risks over the medium term.
Negative Factors
Revenue & Margin Volatility
Historical swings in revenue and margins reflect sensitivity to channel timing, policy shifts, and demand cycles. Such volatility weakens predictability of future earnings and cash flow, complicating capital allocation and making sustained margin targets harder to rely on over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and a large equity base provide durable financial flexibility. This conservatism supports investment in R&D, Nexus operations, selective M&A, and distributor support without forcing asset sales or dilutive financing, reducing insolvency and regulatory stress risks over the medium term.
Read all positive factors
RLX Technology (RLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend Yield0.35%
Average Volume (3M)2.92M
Price to Earnings (P/E)16.6
Beta (1Y)0.50
Revenue Growth66.52%
EPS Growth56.14%
CountryUS
Employees897
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)0.80
Shares Outstanding909,728,640
10 Day Avg. Volume2,712,113
30 Day Avg. Volume2,915,482
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.27
Price to Sales (P/S)5.67
P/FCF Ratio20.22
Enterprise Value/Market Cap4.77
Enterprise Value/Revenue2.66
Enterprise Value/Gross Profit8.04
Enterprise Value/Ebitda9.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.92
Revenue Forecast (FY)$5.62B
RLX Technology Business Overview & Revenue Model
Company Description
RLX Technology Inc., along with its affiliated entities, operates within the People's Republic of China, focusing on the entire lifecycle of electronic vapor products, from conceptualization and development to manufacturing, distribution, and dire...
How the Company Makes Money
RLX primarily makes money by selling closed-system e-vapor products—(1) hardware devices and (2) consumable pre-filled pods/e-liquids—through distribution and retail channels. Revenue is recognized from product sales (net of discounts, returns, an...
RLX Technology Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 14, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: exceptional top-line growth (+96.2% YoY), meaningful margin and profitability expansion, a fully operational Nexus manufacturing hub, and clear international expansion progress (including Europe). Management also noted one-time Q1 effects from China export policy timing and a modest sequential cash decline due to dividend payments, plus concentration and regulatory risks (no current U.S. operations). On balance, the positive growth, margin improvements and strategic operational milestones materially outweigh the transient and manageable headwinds discussed.Positive Updates
Strong Revenue Growth
Net revenues of RMB 1.59 billion in Q1 2026, up 96.2% year-over-year and 38.9% quarter-over-quarter, driven by international momentum and one-time channel timing effects.
Negative Updates
One-Time Channel Timing and Policy-Driven Revenue
Q1 revenue benefited from front-loading by downstream partners ahead of China's export tax rebate cancellation; management acknowledges part of the revenue surge was timing-related and may not fully recur.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Net revenues of RMB 1.59 billion in Q1 2026, up 96.2% year-over-year and 38.9% quarter-over-quarter, driven by international momentum and one-time channel timing effects.
Read all positive updates
Company Guidance
Management's guidance was largely qualitative and execution‑focused: they will pursue quality‑led, compliance‑driven growth and accelerate market penetration in Asia and Europe (having entered 2 new markets in Q1), leveraging the fully operational Nexus R&D/manufacturing hub and a strong cash position (total financial assets RMB 14.53 billion as of Mar 31, 2026, down from RMB 15.73 billion at Dec 31, 2025 after dividends) to fund selective M&A and organic expansion (no unannounced deals are included in guidance). Results-to-date that underpin the guidance include Q1 net revenues of RMB 1.59 billion (+96.2% YoY, +38.9% QoQ), international sales >70% of revenues, gross margin 31.8% (vs 28.6% a year ago), non‑GAAP operating margin 19.6% (vs 13.3% a year ago), non‑GAAP operating income RMB 310.3 million (+187.9% YoY) and non‑GAAP net income RMB 357.3 million (+41.4% YoY from RMB 252.7 million); working capital metrics were AR days 15, inventory days 32 and AP days 49. Management also noted the Q1 revenue boost from front‑loaded orders ahead of China export tax rebate changes (impact now largely behind them), reiterated focus on e‑vapor and modern oral products (oral scaling planned; HNB deferred), and emphasized discipline on valuations and regulatory compliance as key to delivering sustainable long‑term value.RLX Technology Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
91
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.35B | 3.52B | 2.44B | 1.24B | 5.33B | 8.52B |
| Gross Profit | 1.44B | 1.15B | 726.52M | 387.71M | 2.31B | 3.67B |
| EBITDA | 1.25B | 1.12B | 705.32M | 688.34M | 1.86B | 2.71B |
| Net Income | 978.39M | 896.75M | 551.84M | 534.33M | 1.44B | 2.02B |
Balance Sheet | ||||||
| Total Assets | 17.49B | 17.94B | 16.87B | 16.32B | 16.38B | 16.37B |
| Cash, Cash Equivalents and Short-Term Investments | 9.64B | 10.19B | 8.49B | 8.11B | 10.79B | 12.85B |
| Total Debt | 210.78M | 176.47M | 58.50M | 94.96M | 85.92M | 184.81M |
| Total Liabilities | 1.56B | 2.20B | 881.10M | 716.68M | 838.45M | 2.85B |
| Stockholders Equity | 15.82B | 15.64B | 15.99B | 15.61B | 15.57B | 13.51B |
Cash Flow | ||||||
| Free Cash Flow | 709.82M | 985.83M | 842.09M | 166.29M | 448.19M | 1.66B |
| Operating Cash Flow | 828.54M | 1.10B | 854.35M | 198.70M | 486.83M | 1.80B |
| Investing Cash Flow | 48.65M | -822.19M | 3.02B | 2.09B | -4.13B | -7.87B |
| Financing Cash Flow | -1.16B | -282.75M | -678.03M | -1.19B | -477.27M | 9.90B |
RLX Technology Technical Analysis
Neutral
2.17
Price Trends
2.03
Negative
2.13
Negative
2.21
Negative
Market Momentum
-0.02
Negative
49.62
Neutral
74.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLX, the sentiment is Neutral. The current price of 2.17 is above the 20-day moving average (MA) of 1.92, above the 50-day MA of 2.03, and below the 200-day MA of 2.21, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 74.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RLX.
RLX Technology Risk Analysis
RLX Technology disclosed 91 risk factors in its most recent earnings report. RLX Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may engage in acquisitions, investments or strategic alliances, which could require significant management attention and materially and adversely affect our business and results of operations. Q4, 2023
2.
Failure to respond to changes in the regulatory environment in China could materially and adversely affect us. Q4, 2023
3.
Our business is subject to a large number of laws across many jurisdictions, many of which are evolving. Q4, 2023
RLX Technology Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $282.36B | 25.53 | -105.29% | 3.59% | 8.48% | 45.92% | |
73 Outperform | $2.42B | 16.60 | 6.14% | 0.35% | 66.52% | 56.14% | |
71 Outperform | $119.55B | 15.05 | -255.35% | 7.02% | 0.75% | -19.96% | |
69 Neutral | $130.10B | 12.55 | 16.33% | 5.22% | 2.16% | 171.90% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.71B | 29.21 | 17.29% | 0.28% | 16.10% | 26.07% | |
44 Neutral | $86.67M | -2.57 | 546.10% | ― | -38.18% | -21.59% |
* Consumer Defensive Sector Average
RLX
RLX Technology
1.95
-0.22
-10.06%
MO
Altria Group
71.79
17.66
32.63%
BTI
British American Tobacco
60.02
11.66
24.11%
PM
Philip Morris
181.62
8.00
4.61%
TPB
Turning Point Brands
87.65
15.63
21.71%
ISPR
Ispire Technology, Inc.
1.63
-1.20
-42.40%
RLX Technology Corporate Events
RLX Technology Posts Surging Q1 2026 Revenue on International Expansion
May 20, 2026
RLX Technology reported unaudited results for the first quarter ended March 31, 2026, showing net revenues nearly doubling year on year to RMB1.59 billion, with 72.3% generated outside mainland China. The company’s international expansion, i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.