China's RLX Technology Q1 revenue surges on overseas growth

RLX Technology

20/05/2026 10:40

Overview

China e-vapor maker's Q1 revenue rose yr/yr on international expansion and acquisition

Gross margin rose to 31.8% from 28.6%, aided by supply chain optimization

Q1 net income and adjusted net income both rose sharply yr/yr

Outlook

RLX Technology plans to accelerate market penetration in Asia and Europe in coming quarters

Result Drivers

INTERNATIONAL EXPANSION - Co said revenue growth was mainly driven by expansion outside China and contributions from its May 2025 acquisition

SUPPLY CHAIN OPTIMIZATION - Co said gross margin improvement was due to favorable change in revenue mix and further supply chain optimization

EXPORT POLICY IMPACT - Co said revenue growth benefited from a one-time impact from changes in China's export policies

Company press release: ID:nPnsF0p2a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Revenue
RMB 1.59 bln
Q1 Adjusted Net Income
RMB 357.30 mln
Q1 Net Income
RMB 294.20 mln
Q1 Gross Margin
31.80%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the tobacco peer group is "buy"

Wall Street's median 12-month price target for RLX Technology Inc is $3.25, about 54.5% above its May 19 closing price of $2.10

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)