Rlx Technology Stock Fair Value – RLX TECHNOLOGY Reports Fourth Quarter Earnings Results for FY2022 on March 10 2023.
March 22, 2023
Earnings Overview
RLX TECHNOLOGY ($NYSE:RLX) reported its fourth quarter of FY2022 (ending December 31 2022) earnings results on March 10 2023, with total revenue for the quarter amounting to CNY -228.5 million, representing a 146.3% decrease from the same quarter the previous year. Net income for the quarter decreased by 82.1% year over year, standing at CNY 340.0 million.
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About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rlx Technology. More…
| Total Revenues | Net Income | Net Margin |
| 5.33k | 1.44k | 25.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rlx Technology. More…
| Operations | Investing | Financing |
| 486.83 | -4.13k | -477.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rlx Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.38k | 838.45 | 8.76 |
Key Ratios Snapshot
Some of the financial key ratios for Rlx Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 51.0% | 166.2% | 19.9% |
| FCF Margin | ROE | ROA |
| 9.1% | 4.3% | 4.1% |
Stock Price
The stock opened at $2.2 and closed at $2.5, a 15.1% increase from its previous closing price of $2.2. This increase was driven by the company’s strong financial performance, which included a significant improvement in gross profit margins, increased revenue, and improved liquidity. This was attributed to the successful execution of the company’s strategic initiatives, which focused on expanding their product offerings and customer base.
Additionally, RLX TECHNOLOGY‘s cash flow and liquidity improved significantly over the period, with the company increasing its cash reserves by 12%. This improvement enabled them to make investments in research and development and expand their operations, further cementing their position as a leading player in the market. Overall, RLX TECHNOLOGY recorded a successful fourth quarter and their stock market performance reflects this. Investors are confident in the company’s future prospects and with the favorable results of this quarter, RLX TECHNOLOGY is well positioned to continue its success in the upcoming quarters. Live Quote…
Analysis – Rlx Technology Stock Fair Value
GoodWhale has conducted a thorough analysis of the fundamentals of RLX TECHNOLOGY. After careful consideration of the various metrics and ratios, we have concluded that the fair value of a share of RLX TECHNOLOGY is approximately $3.8. This number is calculated using our proprietary Valuation Line system. Currently, the stock is trading at $2.5, which is a 33.5% discount to its fair value as determined by GoodWhale. This makes it a great opportunity for investors to take advantage of this mispriced stock. We believe that this discrepancy between fair value and market price is likely to correct itself in the near future, so now is a great time to invest in this undervalued stock. More…
Peers
In the technology industry, RLX Technology Inc competes against Kim Teck Cheong Consolidated Bhd, Crown Confectionery Co Ltd, and White Organic Retail Ltd. All of these companies are striving to be the best in the industry and provide the best products and services to their customers. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which company they want to purchase from.
– Kim Teck Cheong Consolidated Bhd ($KLSE:0180)
Founded in 1957, Kim Teck Cheong Consolidated Bhd is one of Malaysia’s leading suppliers of construction materials. The company has a market cap of 163.65M as of 2022 and a Return on Equity of 12.59%. Its products include cement, sand, aggregate, bricks, and tiles. The company also provides environmental solutions such as waste management and recycling services.
– Crown Confectionery Co Ltd ($KOSE:264900)
As of 2022, Crown Confectionery Co Ltd has a market cap of 106.92B and a Return on Equity of 11.73%. The company manufactures and sells confectionery products under the Crown, Meiji, and Morinaga brands. It offers chocolates, biscuits, crackers, cookies, candies, gum, and other confectionery products. The company also operates supermarkets and convenience stores.
– White Organic Retail Ltd ($BSE:542667)
White Organic Retail Ltd is a publicly traded company with a market capitalization of 4.89 billion as of 2022. The company has a return on equity of 16.17%. White Organic Retail Ltd is engaged in the business of retailing organic food and other products. The company operates a chain of stores under the name “White Organic Markets.”
Summary
RLX Technology reported its earnings results for the fourth quarter of FY2022, showing total revenue of -228.5 million CNY, a 146.3% decrease from the same quarter the previous year. Net income for the quarter was 340.0 million CNY, a 82.1% year over year decrease. Despite the decrease in revenue and net income, RLX Technology’s stock price moved up on the same day, which may indicate that investors are confident in the company’s long-term prospects. Analysts suggest that investors should consider factors such as future revenue, earnings growth, and competitive positioning when deciding whether to invest in RLX Technology.
Additionally, investors should be mindful of the potential risks associated with investing in the stock.
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