RLX Technology (RLX.N): What‘s New from Citi Consumer Corp Day: 2Q26-to-date On Track

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RLX Technology (RLX.N): What‘s New from Citi Consumer Corp Day: 2Q26-to-date On Track

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18 Jun 2026 11:15:59 ET │ 10 pages

RLX Technology (RLX.N)

What’s New from Citi Consumer Corp Day: 2Q26-to-date On Track

CITI’S TAKE

At the Citi Consumer Corp Day today (Jun 18), mgmt noted 2Q26-to-date

Neutral trend has been largely on track. The impact from stockpiling by

Price (17 Jun 26 16:00) US$1.91 distributors (c.1-2 months inventory) has been well expected. To recap,

the anticipated cancellation of the export tax rebate contributed to Target price US$2.32

accelerating revenue growth in 1Q26 as distributors engaged in strategic Expected share price return 21.5%

inventory positioning. It has been facilitating M&A to accelerate expansion Expected dividend yield 3.7%

in Europe market, which is its strategic focus. Expected total return 25.1%

Market Cap US$2,335M

Overseas expansion – It has been gaining market share but yet material

improvement. It continues to explore disciplined M&A and strategic investment

opportunities to facilitate expansion. In the EU, it mainly focuses on core markets UK,

France, Germany, and Italy. It plans to complete 1-3 M&A projects in 2026, with Lydia LingAC

channel partners (i.e., retailers, distributors) and those with strong supply chain +852-2501-2475

capability (i.e., e-liquid factory) in the EU as potential candidates under lydia.w.ling@citi.com

consideration. The progress so far has been on track with management’s

expectations. Xiaopo Wei, CFA

+852-2501-2472

xiaopo.wei@citi.com

Shareholder return – In next 2-3 years, cash would be mainly used on M&A projects

Brian Chowhile dividend payout remains unchanged at 100% of non-GAAP NP. It would

+852-2501-2712consider more aggressive dividend policy post the M&A phase. Share buyback is still