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Why RLX Technology Stock Is Surging In Premarket Trades Today?

In premarket trading on Wednesday, shares of the leading branded e-vapor company in China, RLX Technology Inc. (RLX) rose 5.37% to $4.12. RLX stock advanced 7.93% to $4.22 in yesterday’s trading. A daily trading volume of 15.23 million shares was reported for RLX Technology stock, which is above the average daily trading volume of 13.42 million shares over the last 50 days.

RLX Technology shares have fallen by -4.87% over the last five days, but they have slumped by -10.53% over the past month. Over the last three months, the price of RLX stock has dropped -43.33% and has lost -86.75 percent since the start of the year. RLX stock is trading at a price-to-earnings ratio of 90.93, while its price-to-sales ratio is 5.25. Following the announcement of a share repurchase program, RLX stock is gaining traction in premarket trading today.

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How RLX will repurchase shares?

RLX Technology (RLX) is the main marked e-fume organization in China. RLX uses its solid in-house innovation and item improvement capacities and inside and out bits of knowledge into grown-up smokers’ requirements to foster unrivaled e-fume items. RLX sells its items through an incorporated disconnected dispersion and “marked store in addition to” retail model custom-made to China’s e-fume market.

RLX Technology (RLX) today reported that its board of directors has approved an offer repurchase program. Compliant with that program, RLX might repurchase up to US$500 million of its shares over a period until December 31, 2023.

RLX’s proposed repurchases might be produced using time to time on the open market at winning business sector costs, in secretly arranged exchanges, in block exchanges and additionally through other legitimately passable means, contingent upon economic situations and as per relevant standards and guidelines. The board of directors of RLX will survey the offer repurchase program intermittently and may approve a change of its terms and size. RLX hopes to support the repurchases out of its current cash balance.

RLX also released quarterly results recently

RLX Technology (RLX) as of late reported its unaudited financial results the third quarter concluded September 30, 2021.

Q3 2021 Financial Highlights

  • RLX’s net incomes were RMB1,676.7 million (US$260.2 million), addressing a lessening of 34.0% from RMB2,541.4 million in the second quarter of 2021.
  • Gross margin announced by RLX was 39.1%, contrasted with 45.1% in the previous quarter.
  • US GAAP net income generated by RLX was RMB976.4 million (US$151.5 million), contrasted with RMB824.3 million a quarter ago.
  • RLX’s Non-GAAP net income was RMB452.7 million (US$70.3 million), contrasted with RMB651.8 million of that generated in the last quarter.

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