RLX - With Double-Digit Sales Growth RLX Technology Is A Buy

October, 14 2021 12:26 PM RLX Technology Inc. American Depositary Shares each representing the right to receive one (1) Class A

RLX offers e-vapor products with various value-added features.
If the management continues to invest in R&D, I expect that the RLX will be able to offer more products. As a result, the revenue line will most likely increase.
In my opinion, if the company comes out with different formulae to use in the e-vapor products, the quality of its products may increase.
I believe in the likelihood of sales growth of 15% from 2026 to 2030, CFO/Sales of 30%, and the Capex/Sales ratio of -1%. With these numbers, the FCF margin would stand at 29%, and the 2030 FCF would be equal to RMB20 billion.
The company’s EV/FCF stands at close to 10x. I used an exit multiple of 7x because I don’t really know what the company’s business model will be in 2031. I also want to be very moderate while choosing my figures.

For further details see:

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