Overview

• China e-vapor firm's Q4 revenue rose 40% yr/yr, driven by international expansion and acquisitions

• Gross margin improved to 31.4% in Q4 from 27.0% a year earlier

• Non-GAAP net income for Q4 increased 27.6% yr/yr

Outlook

• RLX Technology says it is focused on multidimensional growth in 2026

• Company plans to leverage internal agility and external partnerships to address changing market conditions

• RLX Technology aims to pursue sustainable, profitable growth and ongoing innovation

Result Drivers

• INTERNATIONAL EXPANSION - Co said Q4 revenue growth was primarily driven by international expansion and contributions from a newly acquired entity

• REVENUE MIX AND SUPPLY CHAIN - Gross margin improvement attributed to a favorable change in revenue mix and further supply chain optimization

• OPERATING EXPENSES - Slight increase in operating expenses driven by higher salary and welfare costs from consolidation of acquired entity, partly offset by lower share-based compensation

Company press release: ID:nPn9PVHQ2a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 $2.88, about 26.7% above its March 12 closing price of $2.27

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)