RLX - RLX Technology: $2.2 Billion In Cash And A Growing Business Model

December, 14 2021 08:23 AM RLX Technology Inc. American Depositary Shares each representing the right to receive one (1) Class A

RLX Technology Inc. is an e-vapor company in China offering in-house technology and product development for adult smokers.
I could imagine that RLX may be preparing to enter the international markets. In particular, I believe that management could try to enter Germany, Switzerland, and France.
RLX has a production plant located in Shenzhen, China, which follows the international ISO 9001:2015 Standard. It means that the company could be offering products outside China.
With a CFO margin that declines from 35% to 20%, the cash flow from operations would grow from CNY3.32 billion in 2021 to CNY12 billion in 2030.
With a beta close to 0.8-1, cost of equity between 5% and 8%, and cost of debt close to 5%, I would say that the WACC could stand at 5%-7.9%. I would be using a WACC of 7.4%.

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Company Name:	RLX Technology Inc. American Depositary Shares each representing the right to receive one (1) Class A
Stock Symbol:	RLX
Market:	NYSE
Website:	relxtech.com