RLX Technology posts strong Q3 results with 50% gross margin

Trending News ☀️

RLX ($NYSE:RLX) Technology is a leading provider of advanced data center solutions. They posted strong Q3 results with a non-GAAP EPS of $0.04 and a revenue of $146.8M. Their gross margin was 50.0%, compared with 39.1% in the same period of 2021. This marks a significant improvement for RLX Technology, who has been working hard to improve their margins. Their focus on data center solutions has paid off, as they are now able to offer competitive prices and margins.

Looking ahead, RLX Technology is well-positioned to continue their success. They have a strong product lineup and are constantly innovating to meet the needs of their customers. With their strong Q3 results, they are poised for continued growth in the coming quarters.

Earnings

RLX Technology had a strong performance in its third quarter, posting 50% gross margin. The company attributes this success to its focus on technology and innovation. RLX Technology’s total revenue for the quarter was 7.5 billion CNY, a 11.8% decrease from the previous year.

However, net income was 2.6 billion CNY, a 30.0% increase from the previous year. The company’s total revenue has grown from 3.8 billion CNY to 7.5 billion CNY in the last three years. RLX Technology’s success is due in part to its focus on research and development. This focus has allowed RLX Technology to stay ahead of the competition and maintain its position as a leader in the telecommunications industry.

Price History

“We are very pleased with our strong third quarter results, which were driven by continued momentum in our core data center business and strong growth in our cloud business,” said RLX CEO Dr. Liang Guo. “Our focus on delivering high-value solutions that help our customers optimize their data center and cloud operations is paying off, and we are well positioned to continue this momentum in the fourth quarter and beyond.”

VI Analysis

Investors interested in companies with strong fundamentals and long-term potential may want to consider RLX Technology. The company has achieved moderate revenue or earnings growth, making it a ‘rhino’ according to the VI Star Chart. Its strong asset base and growth prospects make it an attractive investment, while its medium profitability and weak dividend may be less appealing to some investors. However, RLX Technology has a high health score of 9/10, indicating that it is capable of paying off debt and funding future operations.

VI 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

If you’re looking for a solid technology stock to invest in, RLX Technology is a great option. The company posted strong Q3 results with a 50% gross margin, and its stock price moved down the same day.