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RLX Technology
(NYSE:RLX)
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Rating:71Outperform
Price Target:
$2.00
▲(11.73% Upside)
Action:Reiterated
Date:09/06/26
RLX scores well on fundamental quality and outlook: a very strong balance sheet and solid profitability, reinforced by a positive earnings update and guidance tied to international expansion. The main offsets are weakening cash-flow momentum and clearly bearish technicals (below major moving averages with negative MACD), while valuation and dividend yield provide some support.
Positive Factors
International revenue expansion
International markets are becoming the company’s primary growth engine, reducing reliance on Mainland China and broadening RLX’s commercial footprint. Continued organic expansion, acquisitions, and localized execution could support more durable revenue growth over the next several quarters.
Negative Factors
Weakening free-cash-flow momentum
Positive cash generation remains a strength, but the sharp year-over-year decline in free cash flow signals weaker momentum and reduces confidence that accounting profitability is converting into cash at prior levels. This may constrain internally funded growth if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
International revenue expansion
International markets are becoming the company’s primary growth engine, reducing reliance on Mainland China and broadening RLX’s commercial footprint. Continued organic expansion, acquisitions, and localized execution could support more durable revenue growth over the next several quarters.
Read all positive factors
RLX Technology (RLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.20B
Dividend Yield5.59%
Average Volume (3M)2.94M
Price to Earnings (P/E)15.0
Beta (1Y)0.43
Revenue Growth59.23%
EPS Growth39.66%
CountryUS
Employees897
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)0.80
Shares Outstanding909,728,640
10 Day Avg. Volume3,453,803
30 Day Avg. Volume2,935,048
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)$5.90B
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 Technology primarily makes money by selling closed-system e-vapor products, with revenue largely generated from (1) sales of pre-filled cartridges/pods (consumables that drive repeat purchases) and (2) sales of e-vapor devices (hardware) and r...
RLX Technology Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 13, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook: solid year-over-year revenue and strong gross profit growth, meaningful gross margin expansion, sustained positive operating profit streak, a robust cash position, and strategic M&A and manufacturing investments underpinning international expansion and multi-category growth. Near-term challenges include sequential normalization after Q1 pre-stocking, a structural margin mix shift from distribution consolidation, conservative China demand guidance, U.S. regulatory uncertainty, and macro/FX exposure. Overall, the positives — strong metrics, balance sheet strength, and strategic execution — outweigh the manageable near-term headwinds.Positive Updates
Top-line Growth
Net revenues of RMB 1.01 billion in Q2 2026, up 14.8% year-over-year from RMB 880 million; international revenues ~70% of total, driven by organic expansion and contributions from the May 2025 acquisition.
Negative Updates
Sequential Moderation from Q1 Pull-Forward
Revenue and gross profit moderated sequentially in Q2 due to trade inventory normalization after a Q1 shipment pull-forward tied to regulatory export adjustments and distributor pre-stocking across multi-brand portfolios.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth
Net revenues of RMB 1.01 billion in Q2 2026, up 14.8% year-over-year from RMB 880 million; international revenues ~70% of total, driven by organic expansion and contributions from the May 2025 acquisition.
Read all positive updates
Company Guidance
Management guided that second‑half reported international revenue should get a step change when the July 2026 Western Europe investment is consolidated in Q3, noting international revenues already account for ~70% of net sales; they reiterated Q2 metrics of net revenues RMB1.01 billion (+14.8% YoY from RMB880m), gross profit RMB357.8 million (+47.8% YoY), gross margin 35.4% (+790 bps YoY, +360 bps sequential), non‑GAAP operating income RMB149.6 million (+28.8% YoY), non‑GAAP net income RMB238.8 million, and total capital resources of RMB13.9 billion as of June 30, 2026. Looking ahead, management expects Mainland China sales to be broadly flat for the year, gross margin to normalize to a “healthy, balanced” range as mix and shipment flows stabilize, and that adding a lower‑percentage‑margin distribution business (serving >30,000 retail endpoints and connecting >20,000 independent merchants) will reduce percentage gross margins but materially expand operating profit and net profit scale; they also emphasized continued capital discipline, ROI‑gated M&A, ongoing SEA manufacturing hub buildout, and reserving excess capital for share repurchases/dividends subject to Board approval.RLX Technology Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
92
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.47B | 3.52B | 2.44B | 1.24B | 5.33B | 8.52B |
| Gross Profit | 1.55B | 1.15B | 726.52M | 387.71M | 2.31B | 3.67B |
| EBITDA | 1.13B | 1.12B | 705.32M | 688.34M | 1.86B | 2.71B |
| Net Income | 978.40M | 896.75M | 551.84M | 534.33M | 1.44B | 2.02B |
Balance Sheet | ||||||
| Total Assets | 16.86B | 17.94B | 16.87B | 16.32B | 16.38B | 16.37B |
| Cash, Cash Equivalents and Short-Term Investments | 8.97B | 10.19B | 8.49B | 8.11B | 10.79B | 12.85B |
| Total Debt | 244.13M | 176.47M | 58.50M | 94.96M | 85.92M | 184.81M |
| Total Liabilities | 1.23B | 2.20B | 881.10M | 716.68M | 838.45M | 2.85B |
| Stockholders Equity | 15.52B | 15.64B | 15.99B | 15.61B | 15.57B | 13.51B |
Cash Flow | ||||||
| Free Cash Flow | 416.98M | 985.83M | 842.09M | 166.29M | 448.19M | 1.66B |
| Operating Cash Flow | 535.70M | 1.10B | 854.35M | 198.70M | 486.83M | 1.80B |
| Investing Cash Flow | 1.85B | -822.19M | 3.02B | 2.09B | -4.13B | -7.87B |
| Financing Cash Flow | -1.24B | -282.75M | -678.03M | -1.19B | -477.27M | 9.90B |
RLX Technology Technical Analysis
Negative
1.79
Price Trends
1.93
Negative
2.00
Negative
2.13
Negative
Market Momentum
-0.04
Negative
39.24
Neutral
45.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLX, the sentiment is Negative. The current price of 1.79 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 1.93, and below the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.24 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.20B | 14.99 | 6.20% | 5.59% | 59.23% | 39.66% | |
69 Neutral | $119.54B | 13.97 | 13.38% | 5.87% | 4.47% | 117.22% | |
68 Neutral | $284.49B | 26.54 | -112.19% | 3.18% | 9.12% | 32.00% | |
66 Neutral | $115.01B | 14.38 | -265.17% | 6.22% | 1.01% | -8.27% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $1.51B | 31.31 | 11.93% | 0.42% | 20.10% | -3.19% | |
44 Neutral | $88.40M | -2.34 | 546.10% | ― | -38.18% | -21.59% |
* Consumer Defensive Sector Average
RLX
RLX Technology
1.79
-0.82
-31.34%
MO
Altria Group
68.17
6.19
9.98%
BTI
British American Tobacco
55.15
1.98
3.72%
PM
Philip Morris
184.73
25.75
16.20%
TPB
Turning Point Brands
74.51
-24.66
-24.87%
ISPR
Ispire Technology, Inc.
1.42
-1.68
-54.19%
RLX Technology Corporate Events
RLX Technology Posts Strong Q2 2026 Results and Buys Majority Stake in Western European Smoke-Free Distributor
Aug 14, 2026
RLX Technology reported unaudited financial results for the second quarter ended June 30, 2026, showing net revenues of RMB1,010.5 million, up 14.8% year on year, driven largely by international expansion and a May 2025 acquisition. Gross margin 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.