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RLX: Higher Margins Will Offset Softer Revenue Outlook Going Forward

Update shared on 12 Dec 2025

Fair value Increased 12%
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AnalystLowTarget's Fair Value
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1Y
22.4%
7D
-0.8%

Analysts have raised their price target on RLX Technology from approximately 2.34 dollars to 2.61 dollars, citing expectations for stronger profit margins that more than offset slightly slower projected revenue growth and a marginally higher discount rate.

Valuation Changes

  • Fair Value: increased moderately from 2.34 dollars to 2.61 dollars per share, reflecting higher estimated intrinsic value.
  • Discount Rate: risen slightly from 7.80 percent to approximately 7.98 percent, implying a marginally higher required return.
  • Revenue Growth: reduced modestly from about 19.26 percent to roughly 17.36 percent, indicating slightly more conservative top line expectations.
  • Net Profit Margin: improved moderately from around 17.05 percent to about 18.64 percent, signaling expectations for stronger profitability.
  • Future P/E: declined slightly from roughly 30.0 times to about 28.4 times forward earnings, suggesting a marginally lower valuation multiple applied to future profits.

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