On March 16, RLX Technology Inc. (RLX) stock continued its bullish roll in the premarket. At the last check, the stock had advanced by a further 24.56%. There is no official announcement or SEC filing behind the bullish momentum of the stock while it has been bullish since yesterday.
In the previous trading session, the stock rebounded from a downtrend to add a huge 40.16%. The session saw an active trading volume of 82.07 million shares, which was 757% of the average. At the close of the session, the stock had a value of $1.71 per share. At the time of writing, RLX was trading at $2.13 per share in the premarket, on Wednesday.
The China-based holding company, RLX Technology Inc. deals in e-vapor products.
What is happening?
Chinese tech stocks have had a bearish sentiment as of recently due to the ongoing Russia-Ukraine conflict. Speculations of China’s relationship with Russia and concerns regarding potential support for the invasion have been afloat in the market. Such speculations have been rising fear among investors towards Chinese stocks as the threat of new sanctions looms overhead. Added to this, lockdowns and measures were also taken due to a recent Covid-19 surge in the country. While the market condition was enough for RLX to remain on a bearish path, the company’s latest earnings disappointed investors further. The company posted its 2021 financials on March 11, which caused a further dip in the stock.
Therefore, after falling down over 31.87% in the past five days, RLX finally rebounded on March 14. With no recent news from the company, the stock seems to be recovering as investors are buying the dip. So far, the stock has continued to rise in the premarket today, as well.
RLX’s 2021 Financials
Net Revenues
The company reported net revenues of RMB1,904.4 million (US$298.8 million) for Q4 and RMB8,521.0 million (US$1,337.1 million) for fiscal 2021. This represents a respective growth of 17.7% and 123.1% YOY for Q4 and fiscal 2021.
Net Income
RLX had a net income of RMB536.5 million (US$84.2 million) in Q4 2021, against RMB419.3 million in the year-ago period.
Moreover, the non-GAAP net income was RMB2,251.5 million (US$353.3 million) for fiscal 2021, against RMB801.0 million in fiscal 2020.
Gross Margin
The company reported a gross margin of 40.2% for Q4 and 43.1% for fiscal 2021. Comparatively, the company had a gross margin of 42.9% and 40.0% in Q4 and fiscal 2020, respectively.
