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

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 Valuation: Smoore International May Not Be The Perfect Hedge

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

<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, raised $1.4bn last week through an NYSE IPO. The IPO was priced at $12.0 per ADS, 20% above the upper end of the indicative price range. Despite the obvious health and regulatory risks, the success of <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a> immediately following its IPO may have tempted investors to take part in the RLX Technology IPO, which was priced in line with Smoore’s current FY+2 EV/Sales multiple.RLX shares opened trading at $24.57 per ADS, 105% above the IPO price, and ended trading on 22nd Friday at $29.51 per ADS, up 145.9% from the IPO price.We were expecting around 20-25% short term upside from the upper end of the initial price range, despite regulatory and health risks (RLX to trade in line with Smoore International).A significant proportion of the market already considers Smoore is overvalued at 21.0x 2022 consensus EV/Sales.However, RLX’s 2022 EV sales of 51.2x made Smoore seem ridiculously cheap compared to RLX, even after adjusting for the revenue growth differential.

RLX Technology Inc (RLX US), China’s number one branded e-vapour company, raised $1.4bn last week through an NYSE IPO. The IPO was priced at $12.0 per ADS, 20% above the upper end of the indicative price range. Despite the obvious health and regulatory risks, the success of Smoore International (6969 HK) immediately following its IPO may have tempted investors to take part in the RLX Technology IPO, which was priced in line with Smoore’s current FY+2 EV/Sales multiple.RLX shares opened trading at $24.57 per ADS, 105% above the IPO price, and ended trading on 22nd Friday at $29.51 per ADS, up 145.9% from the IPO price.We were expecting around 20-25% short term upside from the upper end of the initial price range, despite regulatory and health risks (RLX to trade in line with Smoore International).A significant proportion of the market already considers Smoore is overvalued at 21.0x 2022 consensus EV/Sales.However, RLX’s 2022 EV sales of 51.2x made Smoore seem ridiculously cheap compared to RLX, even after adjusting for the revenue growth differential.

RLX Technology IPO Trading Update: Long Smoore/Short RLX