pizzi
2023-03-03

$RLX Technology(RLX)$

I would like to talk about that I used to justify my investiment on this stock:
1. This company grabbed over 50% of the ecig quota planned for one year in China; in case the assigned quota is sold out in less than 1 year, the company can apply for more ;
2. Rlx developed 4 series of vape products: bronze, silver, gold and platinum(luxury, which can counter a lot of the side effect from the quota control). The bronze product is sold out quickly in most certified ecig stores every week after stores stock vape products from the centrolled wholesale platform. As of now, vape products can only be sold in about 50000 certified stores in China. Online sale is banned. There is rumour : certified traditional cig stores will sell ecig as well. China has 500000 such stores. If this is proven true, the stock will explode right away.
3. Due to the Luke warm acceptance of GB (national standard) vape products, rlx has about 90% of market share temporarily, which helps to increase the brand value.
4. Vape industry is very tightly controlled in China. Any news in the future is good news.
5. The company has a good conservative management team that I can rely on.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
8