Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

RLX Technology IPO Trading Update: Long Smoore/Short RLX

Long Smoore/Short RLX: RLX’s Lock-Up Expiry Could Aggravate the Sell-Off

RLX Technology to Buyback 33% of The Free Float: Time To Reverse The Long Smoore/Short RLX Trade

RLX Technology IPO: Eyeing Global Dominance

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

RLX Technology Inc / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/rlx-technology-inc" target="_blank" data-smartkarma-citation="entities:31113:1" rel="noopener">RLX Technology Inc (RLX US)</a>, China’s number one branded e-vapour company, has demonstrated strong growth since inception in January 2018. The company has captured 62.6% of China’s closed-system e-vapour products market during the first 33 months of operations and might find it difficult to maintain domestic revenue growth in high double digits range in future. Even though overseas expansion has the potential to offset the slowdown of domestic revenue growth, RELX’s performance in about 100 overseas markets was thus far unimpressive. However, the IPO valuation seems to imply sustained growth rates. Thus, we would avoid the RLX Technology IPO on long term investment standpoint. However, as a relative play, RLX Technology’s IPO valuation appears to be at a substantial discount to <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a>, a recent HK IPO in the upstream portion of the e-vapour supply chain. We discuss the details below.</p>

RLX Technology Inc (RLX US), China’s number one branded e-vapour company, has demonstrated strong growth since inception in January 2018. The company has captured 62.6% of China’s closed-system e-vapour products market during the first 33 months of operations and might find it difficult to maintain domestic revenue growth in high double digits range in future. Even though overseas expansion has the potential to offset the slowdown of domestic revenue growth, RELX’s performance in about 100 overseas markets was thus far unimpressive. However, the IPO valuation seems to imply sustained growth rates. Thus, we would avoid the RLX Technology IPO on long term investment standpoint. However, as a relative play, RLX Technology’s IPO valuation appears to be at a substantial discount to Smoore International (6969 HK), a recent HK IPO in the upstream portion of the e-vapour supply chain. We discuss the details below.

RLX Technology IPO Valuation: Smoore International May Not Be The Perfect Hedge