RLX - RLX: Focus On Both Q4 Results And Outlook (Rating Upgrade)
2024-03-19 10:42:26 ET
Summary
- RLX Technology Inc.'s Q4 2023 results surpassed expectations due to its expansion into new geographical markets and good cost control.
- But I am uncertain about the company's prospects, taking into account risks like a potential delay in new product approvals and the competitive threat from illicit products.
- My rating for RLX Technology is a Hold now (versus a Sell previously), following a consideration of its Q4 performance, business outlook, and shareholder capital return expectations.
Elevator Pitch
I rate RLX Technology Inc. ( RLX ) shares as a Hold.
My previous November 1, 2023, update was focused on the read-throughs from the Q3 2023 results of RLX Technology's contract manufacturer. For the current article, I review RLX's Q4 2023 earnings and assess the company's business prospects. ...
RLX: Focus On Both Q4 Results And Outlook (Rating Upgrade)