IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

RLX Technology IPO Initiation: Smoke Signals

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

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> is the leading branded e-vapour company in China with a 62.6% of the market share of closed-system e-vapour products as measured by retail sales value in 9M20, according to CIC. It is seeking is raise as much as $1 billion through an NYSE IPO, according to press reports.</p><p>In <a href="https://www.smartkarma.com/insights/rlx-technology-ipo-initiation-smoke-signals" target="_blank" data-smartkarma-citation="insights:46758" rel="noopener">RLX Technology IPO Initiation: Smoke Signals</a>, we noted that while regulatory uncertainty will remain an overhang, RLX is an attractive play on the rapid growth of the e-vapour market in China. Investors can also gain exposure to this secular growth trend through <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a>, which has stormed ahead around 5x from its IPO price.</p><div class="content-highlight"><p>In this note, we compare RLX and Smoore’s business model and fundamentals. Subject to the proposed IPO price range, investors largely face a trade-off between RLX’s high growth and lower regulatory risk vs Smoore’s scale and higher profitability, in our view. </p></div>

RLX Technology Inc (RLX US) is the leading branded e-vapour company in China with a 62.6% of the market share of closed-system e-vapour products as measured by retail sales value in 9M20, according to CIC. It is seeking is raise as much as $1 billion through an NYSE IPO, according to press reports.In RLX Technology IPO Initiation: Smoke Signals, we noted that while regulatory uncertainty will remain an overhang, RLX is an attractive play on the rapid growth of the e-vapour market in China. Investors can also gain exposure to this secular growth trend through Smoore International (6969 HK), which has stormed ahead around 5x from its IPO price.In this note, we compare RLX and Smoore’s business model and fundamentals. Subject to the proposed IPO price range, investors largely face a trade-off between RLX’s high growth and lower regulatory risk vs Smoore’s scale and higher profitability, in our view. 

RLX Technology Vs Smoore: Which Is a Better Play on the Vaping Market?