Incannex Healthcare stock tumbles after filing $100M offering
On Monday, Citi revised its stance on RLX Technology shares, downgrading the company’s stock rating from Buy to Neutral and lowering the price target from $2.80 to $2.50. This adjustment comes after RLX Technology reported financial outcomes for the fourth quarter of 2024. According to InvestingPro data, the stock has shown strong momentum with significant price gains over the last three months, despite the longer-term bearish trend.
RLX Technology announced a non-GAAP net profit of Rmb246 million for the fourth quarter of 2024, aligning with Citi’s estimates but falling slightly short of the consensus from Visible Alpha. The company’s revenue saw a year-over-year increase of 56%, reaching Rmb813 million, with an 8% quarter-over-quarter growth. This rise in revenue was partly due to an early Chinese New Year (CNY) boost to its non-China business, while its China operations remained relatively stable. InvestingPro analysis reveals the company maintains a strong financial position, holding more cash than debt and maintaining liquid assets that exceed short-term obligations.
The company’s non-GAAP operating profit exceeded expectations, climbing 48% year-over-year to Rmb113 million. The improvement was attributed to effective expense control, leading to a non-GAAP operating profit margin (OPM) of 13.8%.
Despite these positive financial indicators, Citi expressed concerns over the upcoming year. The firm anticipates that regulatory changes and pricing pressures, especially from a shift towards ’Big Puff’ products within the industry, could negatively affect RLX Technology’s growth. Additionally, Citi forecasts that the momentum of RLX’s overseas business may face adverse impacts in 2025. However, InvestingPro data shows analysts remain optimistic about sales growth and profitability for the current year. For deeper insights into RLX Technology’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, RLX Technology reported its fourth-quarter earnings, which fell short of analyst expectations, despite exceeding revenue forecasts. The company announced adjusted earnings per share of $0.19, missing the consensus estimate of $0.20 by $0.01. However, RLX Technology’s revenue reached RMB813.5 million ($111.4 million), surpassing the expected $794 million and showing a significant increase from RMB520.5 million in the same period of the previous year. The revenue growth was attributed to successful international expansion efforts, with gross margin improving to 27.0% from 23.7% in the prior year. For the full fiscal year 2024, the company reported net revenues of RMB2,748.6 million ($376.6 million), reflecting a 73.3% increase year-over-year. Non-GAAP net income for the year was RMB934.0 million ($128.0 million), up from RMB903.9 million the previous year. Despite the earnings miss, RLX Technology continues to focus on innovation, compliance, and product diversification while expanding globally. The company’s efforts in refining its business models and organizational framework have contributed to its growth and market leadership in various regions.
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