Shares of RLX Technology Inc. (RLX) stock rose in the pre-market trading session today after facing a downtrend in the last trade. RLX stock price saw an uptrend of 2.80% to reach $8.80 a share as of this writing. There is no particular news or announcement linked with RLX to justify this rally. So here is what you need to know.
RLX Technology along with its subsidiaries working on the research, development, manufacturing as well as distribution, and selling of e-vapor products in China. The current rally of RLX is not backed up by any news or earning report by the RLX stock. Also, there are no signs of analyst upgrades or social media hype to justify the bull. This is something unusual behavior which investors usually see in the stock market for many stocks.
Financial View of RLX stock:
We find no news about RLX stock in April but on March 26, 2021, RLX announced its fourth-quarter and full-year financial results of 2020 the summary of which is given below.
In the fourth quarter ended on December 31, 2020, RLX generated RMB1,618.5 million net revenue which surpassed the net revenue of the third quarter by 44.5%. The gross margin was surged to 42.9% as compared to 39.1% in the third quarter.RLX recorded a net loss of RMB236.7 million in the fourth quarter while the net income was RMB7.8 million in the prior quarter.
Net revenue for the full year 2020 increased significantly by 146.5% to RMB3,819.7 million as compared to RMB1,549.4 million in 2019. Gross margin reached 40.0% as compared to 37.5% in 2019 and the net loss was RMB128.1 million for the RLX stock in 2020. The estimated revenue for the fiscal year 2021 is more than RMB2.3 billion while more than RMB590 million is estimated for non-GAAP net income.
RLX stock has beaten the analyst estimate according to the earnings report.RLX posted Q4 earnings of$0.05 per share while the consensus estimate was $0.04 per share.RLX reported a loss of RMB0.029 per share in the same tenure of last year.
RLX stock is enjoying the bullish sentiment in the stock market despite the absence of any news related to it. Such behavior of the stock usually doesn’t last for long. Earnings report showed the growth of RLX stock over the year in terms of revenue. In a nutshell, a deep fundamental, as well as technical analysis, would be good practice for investors eyeing this stock.