Group 1 - Futu Holdings Limited will report its financial results for Q4 and full year 2024 on March 13, 2025, before U.S. markets open [1] - An earnings conference call will be held on March 13, 2025, at 7:30 AM U.S. Eastern Time [1] - Participants must pre-register for the conference call using a provided link [2] Group 2 - Upon registration, participants will receive confirmation emails with dial-in numbers and personal PINs [3] - A live and archived webcast of the conference call will be available on the company's investor relations website [3] Group 3 - Futu Holdings Limited is a tech-driven online brokerage and wealth management platform [4] - The company offers a range of digital financial services through its platforms, including trade execution, margin financing, and wealth management [4] - Futu integrates social media tools to enhance user connectivity and engagement [4]

Core Insights - Futu Holdings Limited (FUTU) is currently more attractive to value investors compared to Ibotta (IBTA) based on various financial metrics and rankings [3][7] Valuation Metrics - FUTU has a forward P/E ratio of 18.02, while IBTA has a higher forward P/E of 27.43 [5] - The PEG ratio for FUTU is 0.76, indicating better value relative to its expected earnings growth compared to IBTA's PEG ratio of 0.87 [5] - FUTU's P/B ratio stands at 4.36, which is lower than IBTA's P/B ratio of 5.29, suggesting that FUTU is more undervalued in terms of market value versus book value [6] Earnings Outlook - FUTU has a Zacks Rank of 2 (Buy), indicating a stronger improvement in earnings outlook compared to IBTA, which has a Zacks Rank of 3 (Hold) [3][7] - The analysis indicates that FUTU has experienced stronger estimate revision activity, making it a more favorable option for value investors [7] Value Grades - FUTU has been assigned a Value grade of B, while IBTA has a Value grade of C, reflecting the relative attractiveness of their valuations [6]

Stock Comparison: Futu Holdings Limited Sponsored ADR (FUTU) vs Symbotic Inc (SYM) - Investors in the Technology Services sector may consider FUTU or SYM as potential investment opportunities [1] - The Zacks Rank system, which emphasizes earnings estimates and revisions, is used to identify value opportunities [2] Zacks Rank and Earnings Outlook - FUTU has a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3][7] - SYM has a Zacks Rank of 3 (Hold), suggesting less favorable earnings outlook compared to FUTU [3] Valuation Metrics - FUTU has a forward P/E ratio of 14.12, significantly lower than SYM's 206.26 [5] - FUTU's PEG ratio of 0.69 is much lower than SYM's 6.88, indicating better value considering earnings growth [5] - FUTU's P/B ratio of 3.30 is substantially lower than SYM's 44.70, suggesting FUTU is more reasonably valued relative to its book value [6] Value Grades - Based on valuation metrics, FUTU earns a Value grade of B, while SYM receives a Value grade of F [6] - The combination of Zacks Rank and Value grade suggests FUTU is the superior value option currently [7]

Individual Investors Growth - 46 million new brokerage accounts were opened by individual investors in the U S during 2020-21, an 80% increase over a two-year period [1] - More than 75% of these new investors remain invested today, indicating a sustained interest in the market [1] The Investor Diaries Initiative - The Investor Diaries is a research initiative launched by The BlackRock Foundation and Commonwealth to understand new investors, particularly those earning low to moderate incomes (LMI) [9] - The initiative aims to provide insights into the financial circumstances, motivations, behaviors, and needs of LMI investors, and the role of capital market investing in their financial wellness [9] - The project will use voice diary entries, a national survey, and analysis of large transaction data sets to capture the experiences of LMI investors [9] Partnership with Investment Platforms - Commonwealth has partnered with Betterment and moomoo to capture participants' experiences with both robo-advised and self-directed platforms [10] - Betterment offers automated investment technology with diversified, expert-built portfolios, while moomoo provides an accessible platform for self-directed investors with advanced tools and features [11] About Commonwealth - Commonwealth is a national nonprofit that builds financial security and opportunity for LMI households through innovation and partnerships [6] - Over the past two decades, Commonwealth has enabled over 2 million people to save nearly $8 billion [6] About The BlackRock Foundation - The BlackRock Foundation focuses on making saving and investing more accessible and affordable for LMI households [7] - The foundation's Emergency Savings Initiative has provided access to more than 10 million people and led to $2 billion in new liquid savings between 2019 and 2022 [7] About Betterment - Betterment is the largest independent digital financial advisor, helping more than 900,000 customers manage over $50 billion with low-cost, expert-built investing portfolios [12] About moomoo - Moomoo is an investment and trading platform that provides global investors with pro-grade tools, data, and insights to make informed investment decisions [4] - The platform offers advanced charting tools, technical analytics, and in-depth data, along with educational resources and community features [4]

Investment Rating - The report maintains a **Buy** rating for Futu Holdings (FUTU US) with a target price of **$108.00**, representing a potential upside of **43.2%** from the current price of **$75.41** [1][5] Core Views - The report highlights that Futu Holdings' current valuation is attractive, with a 2024E P/E ratio of **16x**, significantly lower than its US internet brokerage peers [9] - The company's diversified overseas markets and product lines (stocks, equity derivatives, cryptocurrencies, wealth management products) are expected to enhance business stability [9] - The report expects Futu's ROE to remain around **18%** from 2024 to 2026, excluding special dividends [9] Financial Performance and Forecasts Revenue and Profit Growth - Revenue is expected to grow from **HKD 10,008 million** in 2023 to **HKD 12,848 million** in 2024E, representing a **28.4%** YoY increase [7][9] - Non-GAAP net profit is forecasted to grow from **HKD 4,572 million** in 2023 to **HKD 5,419 million** in 2024E, an **18.5%** YoY increase [7][9] - The report has revised its 2024E revenue forecast upward by **4.2%** and Non-GAAP net profit by **2.4%** [4] Key Financial Metrics - Gross margin is expected to remain stable at **81.9%** in 2024E, slightly up from **81.8%** in the previous forecast [4] - Net profit margin is projected to be **39.6%** in 2024E, down **0.6** percentage points from the previous forecast [4] - EPS is expected to grow from **HKD 30.78** in 2023 to **HKD 36.49** in 2024E, a **2.6%** upward revision from the previous forecast [6] Operational Metrics - The number of funded clients is expected to grow from **1.71 million** in 2023 to **2.31 million** in 2024E, a **34.9%** YoY increase [3][7] - Client assets are projected to grow from **HKD 485.6 billion** in 2023 to **HKD 645.9 billion** in 2024E [7] - Trading volume is expected to reach **HKD 7.1 trillion** in 2024, a **68%** YoY increase, driven by active trading in both Hong Kong and US markets [9] Market and Industry Context - The report notes that the Federal Reserve's slower pace of interest rate cuts is expected to stabilize Futu's net interest income, with a **3.7%** YoY growth forecasted for 2024 [9] - The company's overseas expansion and product diversification are seen as key drivers of future profitability, particularly in a high-interest-rate environment [9] Valuation and Peer Comparison - Futu's 2024E P/E ratio of **16x** is significantly lower than its US internet brokerage peers, making its valuation attractive [9] - The report suggests that supportive economic policies in China could further boost the company's valuation [9]

Company Analysis - Futu Holdings (NASDAQ: FUTU) stock experienced significant growth, increasing its value by four times in 2020 and then by 400% in January 2021 [1] - The company's stock has been highly volatile in recent years, but is now considered a clear buy [1] Industry Trends - The financial, consumer, and technology industries are key areas of focus for investment analysis [1] - Emerging technologies and their impact on younger generations are important considerations for long-term growth investments [1] Investment Philosophy - Deep research into business model trends is prioritized over short-term market trends or stock prices [1] - This approach aims to identify long-term growth opportunities while avoiding risky financial instruments [1]

Stocks with Buy Rank and Strong Momentum - mondaycom Ltd (MNDY) has a Zacks Rank 1 with a 159% increase in Zacks Consensus Estimate for current year earnings over the last 60 days The companys shares gained 141% over the last three months compared to the S&P 500s 63% gain and has a Momentum Score of A [1] - Futu Holdings Limited (FUTU) has a Zacks Rank 1 with a 67% increase in Zacks Consensus Estimate for current year earnings over the last 60 days The companys shares gained 366% over the last three months compared to the S&P 500s 63% gain and has a Momentum Score of A [2] - Vistra Corp (VST) has a Zacks Rank 1 with a 55% increase in Zacks Consensus Estimate for current year earnings over the last 60 days The companys shares gained 826% over the last three months compared to the S&P 500s 63% gain and has a Momentum Score of B [3]

Core View - Futu Holdings Limited Sponsored ADR (FUTU) is considered a superior value option compared to Braze, Inc (BRZE) based on valuation metrics [7] Stock Comparison - Both FUTU and BRZE currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - FUTU has a forward P/E ratio of 17.51, significantly lower than BRZE's 595.54 [5] - FUTU's PEG ratio of 0.86 is substantially more favorable than BRZE's 19.85 [5] - FUTU's P/B ratio of 3.17 is more attractive compared to BRZE's 8.76 [6] Valuation Metrics - The Value category evaluates companies using multiple metrics including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - FUTU earns a Value grade of B, while BRZE receives a Value grade of F based on these metrics [6] Investment Strategy - The optimal approach for identifying value opportunities combines a strong Zacks Rank with a high grade in the Value category of the Style Scores system [2]

Business Services Group Overview - The Business Services group includes 304 companies and is currently ranked 4 in the Zacks Sector Rank [2] - The Zacks Sector Rank measures the strength of 16 sector groups based on the average Zacks Rank of individual stocks within the groups [2] Futu Holdings Limited Sponsored ADR (FUTU) Performance - FUTU is currently ranked 1 (Strong Buy) in the Zacks Rank, indicating potential for outperformance over the next 1-3 months [3] - The Zacks Consensus Estimate for FUTU's full-year earnings has increased by 252.2% over the past three months, reflecting improved analyst sentiment [4] - FUTU has gained approximately 55% year-to-date, outperforming the Business Services group average of 23.2% [4] - FUTU belongs to the Technology Services industry, which has gained an average of 32.1% year-to-date, further highlighting FUTU's strong performance [6] Willdan Group (WLDN) Performance - WLDN has outperformed the Business Services sector with a year-to-date return of 94.3% [5] - The consensus EPS estimate for WLDN has increased by 11.7% over the past three months, and the stock currently holds a Zacks Rank 2 (Buy) [5] - WLDN belongs to the Business - Services industry, which has declined by 4.7% year-to-date, making WLDN's performance particularly notable [6] Industry and Sector Insights - The Technology Services industry, which includes 162 companies, is currently ranked 67 in the Zacks Industry Rank [6] - The Business - Services industry, which includes 24 companies, is currently ranked 82 in the Zacks Industry Rank [6] Investment Outlook - Investors should continue to monitor FUTU and WLDN as they have demonstrated strong performance and potential for continued outperformance in the Business Services sector [7]

Investment Rating - The report does not explicitly mention an investment rating for Futu Holdings (FUTU) [2] Core Views - Futu Holdings continues to demonstrate strong growth through product innovation and market expansion, particularly in Southeast Asia [2] - The company achieved a 30% YoY increase in total revenue to HKD 3.4 billion in Q3 2024, driven by growth across all business segments [2] - FUTU's customer base and assets under management continue to expand rapidly, with total paying clients reaching 2.2 million, a 33% YoY increase [2][5] Financial Performance Revenue Breakdown - Brokerage commission and handling fee revenue grew 52% YoY to HKD 1.5 billion, despite a decrease in commission rates from 9.3 bps to 8.0 bps [2] - Interest income increased 13% YoY to HKD 1.7 billion, driven by margin financing and securities lending businesses [2] - Other income (including wealth management and corporate services) surged 52% YoY to HKD 209 million [2] Cost Structure - Total costs increased 43% YoY to HKD 625 million, primarily driven by higher interest expenses (up 43% YoY) and processing/service costs (up 51% YoY) [2] Profitability - Gross profit grew 27% YoY to HKD 2.8 billion, with a gross margin of 81.8% [2] - Operating profit increased 31% YoY to HKD 1.7 billion, with an operating margin of 50.4% [2] - Net profit rose 21% YoY to HKD 1.3 billion, with a net profit margin of 38.4% [2] Customer Growth and Market Performance - FUTU added 154,000 net new paying clients in Q3 2024, a 138% YoY increase [2] - Total client assets grew 48% YoY to HKD 693 billion, driven by stock appreciation and net asset inflows [5] - Hong Kong and Singapore markets contributed over one-third of new paying clients, while Malaysia remained the largest contributor for three consecutive quarters [4] Trading Volume and Market Activity - Total trading volume increased 17% QoQ to HKD 1.9 trillion [6] - US stock trading volume grew 23% QoQ to HKD 1.53 trillion, driven by increased interest in tech stocks and leveraged ETFs [6] - Hong Kong stock trading volume declined 3% QoQ to HKD 348 billion, despite a 267% weekly surge in late September [6] Product Innovation and Expansion - Launched US stock dividend reinvestment plan in Hong Kong [7] - Introduced NISA savings accounts and mutual funds in Japan, along with US stock margin trading and Japanese options [7] - Became the first broker in Malaysia to offer US stock options trading and launched MYR/USD-denominated money market funds [7] Capital Allocation - The board approved a special cash dividend of USD 0.25 per ordinary share or USD 2.00 per ADS, totaling approximately HKD 195 million [8] Financial Forecasts - Operating revenue is projected to grow from HKD 12.62 billion in 2024 to HKD 16.42 billion in 2026 [9] - Net profit is expected to increase from HKD 5.10 billion in 2024 to HKD 7.45 billion in 2026 [9] - EPS is forecasted to rise from HKD 4.59 in 2024 to HKD 6.78 in 2026 [9]