Core Insights - Futu Holdings Limited Sponsored ADR (FUTU) is currently viewed as a better value opportunity compared to Amplitude, Inc. (AMPL) based on various financial metrics and rankings [1]. Valuation Metrics - FUTU has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while AMPL has a Zacks Rank of 4 (Sell) [3]. - The forward P/E ratio for FUTU is 15.61, significantly lower than AMPL's forward P/E of 147.95, suggesting that FUTU is more attractively priced [5]. - FUTU's PEG ratio stands at 0.86, while AMPL's PEG ratio is much higher at 3.83, indicating that FUTU is expected to grow earnings at a more favorable rate relative to its price [5]. - FUTU has a P/B ratio of 3.97, compared to AMPL's P/B of 4.08, further supporting the argument that FUTU is undervalued [6]. - Based on these metrics, FUTU has earned a Value grade of A, while AMPL has received a Value grade of F [6]. Investment Outlook - Given the superior Zacks Rank and Style Scores, value investors are likely to favor FUTU over AMPL as a more promising investment opportunity at this time [7].

Group 1 - Amadeus IT Group SA Unsponsored ADR (AMADY) has shown strong year-to-date performance, with a return of approximately 11.8%, outperforming the Business Services sector average of -1.5% [4] - The Zacks Rank for AMADY is currently 2 (Buy), indicating positive analyst sentiment and an improving earnings outlook [3][4] - The Zacks Consensus Estimate for AMADY's full-year earnings has increased by 1.7% over the past quarter, reflecting stronger analyst sentiment [4] Group 2 - Amadeus IT Group SA Unsponsored ADR is part of the Technology Services industry, which has seen an average loss of 10.4% this year, further highlighting AMADY's relative strength [6] - Another stock in the Business Services sector, Futu Holdings Limited Sponsored ADR (FUTU), has also outperformed the sector with a year-to-date increase of 15.1% and a Zacks Rank of 2 (Buy) [5][6] - Investors in the Business Services sector are encouraged to monitor both Amadeus IT Group SA and Futu Holdings Limited for their solid performance [7]

Core Insights - Moomoo and its foundation are launching a 2025 initiative to enhance financial literacy among North American users and global communities [1][2] Group 1: Financial Literacy Initiatives - Moomoo Foundation is collaborating with W!se to honor the 100 Best High Schools Teaching Personal Finance, with awards presented at Touro College [2] - A series of financial literacy seminars will be held in New York and New Jersey, focusing on stock market fundamentals and equity trading [3][5] - Moomoo aims to empower diverse demographics by providing tools for informed investment decisions, regardless of ethnicity, age, or gender [3][5] Group 2: User Financial Health - A quarterly survey of approximately 1,200 North American users revealed that many users are financially better off compared to last year, with consistent savings directed towards stocks [7][11] - Despite positive financial returns, concerns arise from new tariff policies and signs of economic slowdown affecting retail investors [5][7] Group 3: Moomoo Foundation's Mission - The foundation focuses on promoting financial literacy, advancing economic equality, and fostering technological innovation through strategic partnerships and grants [8][9] - Moomoo Foundation emphasizes a sustainable approach to ensure lasting impact in financial education and empowerment [10]

Investment Rating - The report maintains an "Outperform" rating for the company [2][5][8] Core Views - The company is recognized as a leading online wealth management platform with significant advantages in product offerings, technological innovation, and user experience [3][4] - The company's strong growth in client deposits and Assets Under Management (AUM) is attributed to international expansion, quality customer service, and organic growth [4] - The company exhibits industry-leading Return on Equity (RoE) and profitability, ranking first among global online brokers [4][5] Financial Projections - Revenue projections for the company are as follows: HK$ 13.59 billion in 2024, HK$ 16.91 billion in 2025, HK$ 19.18 billion in 2026, and HK$ 21.87 billion in 2027, reflecting growth rates of 36%, 24%, 13%, and 14% respectively [2][7] - Net profit is expected to reach HK$ 5.43 billion in 2024, HK$ 6.83 billion in 2025, HK$ 8.45 billion in 2026, and HK$ 9.54 billion in 2027, with compound annual growth rates (CAGR) of 20% [5][7] - The company is projected to achieve a target price of US$ 125.00 per share based on a price-to-earnings ratio (P/E) of 20 for 2025 [2][5][8] Market Position and Competitive Advantage - The company has a robust one-stop wealth management ecosystem that includes low commissions, ease of operation, and comprehensive services [3][4] - The company’s international expansion strategy is expected to sustain user growth and AUM, with a forecasted increase in client numbers from 2.4 million in 2024 to 3.2 million in 2025 and 3.6 million in 2026 [4][5] - The company’s AUM is anticipated to grow at an 11% CAGR from 2025 to 2027, reaching HK$ 1 trillion by 2027 [4][5]

Core Viewpoint - Futu Holdings (FUTU) is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating it may be undervalued compared to its peers [4][8]. Valuation Metrics - FUTU has a Forward P/E ratio of 10.93, significantly lower than the industry average of 21.70, suggesting it is undervalued [4]. - The PEG ratio for FUTU stands at 0.48, compared to the industry average of 1.12, indicating favorable growth expectations relative to its price [5]. - FUTU's P/B ratio is 3.04, which is attractive when compared to the industry's average P/B of 5.04, further supporting its undervaluation [6]. - The P/CF ratio for FUTU is 15.77, well below the industry average of 44.59, highlighting its strong cash flow outlook [7]. Overall Assessment - The combination of these valuation metrics suggests that FUTU is likely undervalued at present, and its strong earnings outlook enhances its appeal as a value stock [8].

Core Viewpoint - Futu Holdings Limited Sponsored ADR (FUTU) is currently more attractive to value investors compared to SPX Technologies (SPXC) based on various valuation metrics and earnings estimate revisions [1][3][7]. Valuation Metrics - FUTU has a forward P/E ratio of 11.51, significantly lower than SPXC's forward P/E of 20.89, indicating that FUTU may be undervalued [5]. - The PEG ratio for FUTU is 0.50, while SPXC has a PEG ratio of 1.16, suggesting that FUTU offers better value relative to its expected earnings growth [5]. - FUTU's P/B ratio stands at 3.04, compared to SPXC's P/B of 4.30, further supporting the notion that FUTU is more attractively priced [6]. Analyst Outlook - FUTU holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable analyst outlook due to stronger earnings estimate revision activity compared to SPXC, which has a Zacks Rank of 2 (Buy) [3][7]. - The combination of a strong Zacks Rank and favorable valuation metrics positions FUTU as a superior option for value investors at this time [3][7].

Core Viewpoint - Futu Holdings Limited (FUTU) has demonstrated significant stock performance, with a 59.3% increase over the past year, outperforming its industry and the Zacks S&P 500 Composite, indicating strong market positioning and growth potential [1][4]. Performance Comparison - FUTU has outperformed industry peers such as Amplitude, Inc. (AMPL) and Alithya Group Inc. (ALYAF), which saw declines of 11.3% and 20.7% respectively over the same period [1]. - In the last six months, FUTU shares rose 6%, while the industry and Amplitude declined by 17.3% and 19.4% respectively, showcasing FUTU's resilience [4]. Customer Base Expansion - In Q4 2024, the number of paying clients increased by 39.1% year-over-year, contributing to a 41% increase in 2024 [6]. - The total number of registered clients and users grew by 28.7% and 16.2% year-over-year in Q4 2024, leading to an 86.8% surge in revenues for the same quarter [7]. - The company anticipates acquiring 800,000 new paying clients in 2025, suggesting sustained revenue growth [7]. Operational Efficiency - The incorporation of AI, specifically through the deployment of DeepSeek, has enhanced operational efficiency, reflected in a 116.6% increase in operating income and a 690 basis points rise in operating margin year-over-year in Q4 2024 [9]. Valuation Metrics - FUTU shares are currently priced at 11.72 times forward 12-month earnings per share, significantly lower than the industry average of 27.06 times, indicating a potentially undervalued stock [11]. - The trailing 12-month EV-to-EBITDA ratio for FUTU is 2.48 times, well below the industry average of 19.54 times, further supporting the argument for a discounted valuation [13]. Profitability and Growth Prospects - Futu Holdings has a trailing 12-month return on equity (ROE) of 20%, outperforming the industry average of 6.4%, indicating effective use of shareholder investments [15]. - The Zacks Consensus Estimate projects FUTU's 2025 revenues at $2.1 billion, reflecting a 22.8% year-over-year growth, with earnings per share expected to reach $6.92, suggesting a 38.1% increase [17]. Investment Recommendation - Given the substantial stock price surge, discounted valuation, effective use of AI, and strong client inflow, Futu Holdings presents a compelling investment opportunity [18].

Company Performance - Amadeus IT Group SA Unsponsored ADR (AMADY) has returned 7.7% year-to-date, outperforming the average loss of 4.7% in the Business Services group [4] - The Zacks Consensus Estimate for AMADY's full-year earnings has increased by 1.8% over the past 90 days, indicating improving analyst sentiment [4] - Amadeus IT Group SA Unsponsored ADR currently holds a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook [3] Industry Context - Amadeus IT Group SA Unsponsored ADR is part of the Technology Services industry, which consists of 131 companies and currently ranks 65 in the Zacks Industry Rank [6] - The Technology Services industry has experienced an average loss of 14.8% year-to-date, highlighting AMADY's relative strength within this sector [6] - Another stock in the Business Services sector, Futu Holdings Limited Sponsored ADR (FUTU), has also shown positive performance with a year-to-date increase of 0.5% and a Zacks Rank of 1 (Strong Buy) [5]

Company Overview - Futu Holdings Limited is a leading tech-driven online brokerage and wealth management platform listed on Nasdaq under the ticker FUTU [1][3] - The company offers fully digitalized financial services through its proprietary platforms, Futubull and moomoo, which include trade execution, margin financing, securities lending, and wealth management [3] Annual Report Filing - The company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission [1] - The annual report, which includes audited consolidated financial statements, is available on the company's investor relations website [1][2] Shareholder Services - Futu Holdings Limited will provide a copy of its annual report free of charge to shareholders and ADS holders upon request [2] - Requests for the annual report should be directed to the Investor Relations Department located in Shenzhen, China [2]

Financial Performance - As of December 31, 2024, the company's outstanding loans and advances amounted to HK$49.7 billion (US$6.4 billion), up from HK$32.5 billion in 2023 and HK$26.7 billion in 2022[128]. - The balance of receivables increased significantly to HK$22.8 billion (US$2.9 billion) as of December 31, 2024, compared to HK$10.1 billion in 2023 and HK$9.8 billion in 2022[130]. - In 2022, 2023, and 2024, the company generated HK$986.4 million, HK$2,482.9 million, and HK$2,840.8 million (US$365.7 million) in interest income from bank deposits, primarily from uninvested cash balances in client accounts[182]. - A significant decrease in liquidity could negatively affect the company's business and financial management, potentially leading to a loss of client confidence and brokerage accounts[179]. - A significant change in clients' cash allocations could negatively impact net interest revenues and overall financial results[182]. Credit Risk and Management - The allowance for credit losses recorded as of December 31, 2024, was HK$85.3 million (US$11.0 million)[128]. - A single borrower accounted for 95.91% of the total outstanding balance of stock-pledged loans as of December 31, 2024, indicating a high concentration of credit risk[129]. - The company faces significant risks related to credit exposures from margin financing, securities lending, IPO loans, and stock-pledged loan businesses, which could adversely affect its financial condition[128]. - The company has implemented comprehensive internal policies to manage credit risks, including margin calls and liquidation protection mechanisms[129]. Regulatory Environment - The company has not obtained necessary licenses for certain services in China, which could lead to regulatory penalties and affect business operations[155]. - The evolving regulatory environment in China poses uncertainties that may affect the company's compliance and operational capabilities[161]. - Increased regulatory scrutiny in the securities brokerage and wealth management industries may lead to new rules that could adversely affect the company's business model[165]. - Legislative changes and enforcement actions could directly affect the company's operational model and profitability[166]. - The company is subject to various regulatory requirements in the U.S., Singapore, and Australia, including compliance with the U.S. Brokerage Regulations and the Australian Securities and Investments Commission[213]. Technology and Operational Risks - The company’s proprietary technology is crucial for its operations, and any failure to maintain technological superiority could adversely impact its results[138]. - The company is exposed to risks from unexpected network interruptions and security breaches, which could materially affect its business operations[142]. - The company relies on third-party software and infrastructure, which if disrupted, could materially affect its business operations and financial condition[146]. - Significant reliance on external service providers for key market information and data, with potential disruptions impacting product delivery and operational results[149]. Employee and Labor Issues - Competition for well-qualified employees is intense, and failure to attract and retain key personnel could adversely affect the company's business[186]. - Increased labor costs and stricter labor laws are expected to impact financial results, with average wages anticipated to rise[203]. - Employee misconduct risks could lead to significant legal liabilities and reputational harm, impacting client relationships and financial condition[162]. Market and Economic Factors - The trade war between the United States and China may negatively impact the company's operations and client spending power[236]. - Changes in social, political, and economic policies in China may adversely affect the company's business and growth strategies[227]. - Fluctuations in exchange rates, particularly between Renminbi and U.S. dollars, could materially impact financial position and operating expenses[208]. - Limited hedging options in China may exacerbate currency exchange losses, affecting overall investment[210]. Corporate Governance and Shareholder Rights - The dual-class voting structure may limit the ability of Class A ordinary shares and ADS holders to influence corporate matters and could discourage change of control transactions[300]. - The company may face substantial uncertainties regarding compliance with the PRC Foreign Investment Law and its impact on corporate governance and business operations[295]. - Shareholders have limited rights under Cayman Islands law to inspect corporate records, which may hinder obtaining necessary information for shareholder actions[325]. Legal and Compliance Risks - The company faces potential claims and disputes with service providers, which could incur substantial expenses and harm its reputation[152]. - Errors in clearing functions could expose the company to regulatory fines and civil penalties, impacting business operations and financial condition[183]. - The company may face significant legal claims related to intellectual property infringement, which could disrupt operations and require substantial management resources to defend against[192]. - The company is subject to potential liabilities for user-generated content, which may adversely affect business results and operations[194]. Strategic Initiatives and Future Outlook - The company has expanded operations into the United States, Singapore, Australia, Japan, Canada, and Malaysia, with potential further international expansion[212]. - The company may evaluate strategic investments or acquisitions, which could require significant management attention and disrupt business operations[202]. - The company anticipates that net proceeds from its securities offering will be sufficient for general corporate purposes for at least the next 12 months, but may face challenges in raising additional capital[223].