Chinese e-vapor company RLX Technology Q2 revenue rises on international markets  expansion

Overview

• RLX Technology Q2 revenue rises 40.3% yr/yr to RMB880 mln (US$122.8 million)

• Gross margin improves to 27.5% from 25.2% in prior year

• Non-GAAP income from operations up 147.6% yr/yr to RMB116.2 mln

Outlook

• Company emphasizes global compliance and strategic partnerships for future growth

• RLX Technology focuses on data-driven localized strategies for expansion

• Company confident in navigating regulatory shifts and consumer behavior changes

Result Drivers

• INTERNATIONAL EXPANSION - Co attributes 40.3% year-over-year revenue growth to sustained momentum in international markets, per CFO Chao Lu

• COST CONTROL - Disciplined cost management and optimized product mix led to a 147.6% increase in non-GAAP income from operations, according to CFO Chao Lu

• MARGIN IMPROVEMENT - Gross margin rose to 27.5% from 25.2% in the prior year, driven by favorable revenue mix and improved margins in selected Asian countries

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the tobacco peer group is "buy"

• Wall Street's median 12-month price target for RLX Technology Inc is $2.48, about 9.5% above its August 21 closing price of $2.24

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn3t7G4Ha