Chinese stocks experienced significant gains. Notably, Trip.com Group (CTRP, Financial) saw its shares increase by 8%. Li Auto (LI) experienced a rise of over 6%.JD.com (JD) and Futu Holdings (FUTU) both reported growth of more than 5%, while Alibaba (BABA) and Baidu (BIDU) shares also climbed, each gaining nearly 4%. ...

The rocket fuel provided by the Chinese government's stimulus was only one factor in the company's pop. A monster analyst price target increase, combined with recent market-shaking news from its home government, helped push Futu Holdings (FUTU 8.81%) stock notably higher in value across the past few trading days. As of late Thursday afternoon, the Chinese online brokerage's shares were up by a very impressive 43% week to date, according to data compiled by S&P Global Market Intelligence. (Almost) doubling d ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $90, indicating a potential upside of 50.7% from the current price of $59.71 [2][9]. Core Insights - The company's revenue significantly exceeded expectations, with a year-on-year increase of 25.9% in Q2 2024, driven by higher trading volumes and interest income. The net profit for Q2 2024 was HKD 1.209 billion, reflecting an 8.0% year-on-year growth [1][2]. - The company has shown strong growth in new paying customers, adding 155,000 in Q2 2024, bringing the total to 2.04 million, a 28.8% increase year-on-year. The annual guidance for new paying customers has been raised from 400,000 to 550,000 [1][2]. - The trading commission rate has rebounded, with Q2 trading volume reaching HKD 1.62 trillion, a 69% year-on-year increase. The average commission rate was 8.5 basis points, slightly up from the previous quarter [1][2]. Financial Overview - Revenue for 2024 is projected to be HKD 11.616 billion, with a net profit of HKD 4.539 billion, reflecting a year-on-year growth of approximately 6% [2][4]. - The average customer acquisition cost in Q2 2024 was HKD 2,182, which, while higher than Q1, remains significantly lower than the average for 2023 [1][2]. - The company's wealth management assets grew by 84% year-on-year, now accounting for 14% of total customer assets, with a penetration rate exceeding 25% [1][2]. Customer and Market Performance - The company reported a total of 2.04 million paying customers as of the end of Q2 2024, with significant contributions from the Malaysian market, despite a slight decline in growth rate [1][2]. - The average assets per customer remained stable at HKD 284, with total customer assets reaching HKD 579.3 billion in Q2 2024 [1][5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $85.06, reflecting an increase from previous estimates [2]. Core Insights - The company's revenue for Q2 2024 reached HKD 31.29 billion, representing a year-on-year growth of 25.92%. The growth in brokerage commissions was a significant contributor, increasing by 44.48% year-on-year [4][5]. - Net profit for Q2 2024 was HKD 12.09 billion, up 8.02% year-on-year, with Non-GAAP net profit at HKD 12.96 billion, reflecting an increase of 8.61% year-on-year [4][5]. - The number of registered and paying customers reached 4.046 million and 2.042 million, respectively, with quarterly growth rates of 3.56% and 8.22% [5]. - The average revenue per user (ARPU) showed a quarter-on-quarter increase of 10.49%, reaching HKD 1,592 [5]. Financial Performance Summary - Total revenue for 2024 is projected at HKD 12,183 million, with a year-on-year growth of 21.73% [4]. - The company expects to achieve a Non-GAAP net profit of HKD 51 billion for 2024, down from previous estimates due to lower-than-expected growth in brokerage income [5]. - The gross profit margin is projected to be 83.35% for 2024, slightly decreasing from 84.65% in 2023 [4]. Market Position and Strategy - The company has expanded its product offerings in international markets, particularly in Singapore and Malaysia, where customer assets have shown significant growth [5]. - The introduction of new services, such as cryptocurrency trading and a dollar-denominated money market fund, is expected to enhance customer acquisition and retention [5]. - The company has completed over 80% of its annual target for new paying customers, with expectations to increase this number to 550,000 by year-end [5].

HONG KONG, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced that S&P Global Ratings (“S&P”) maintained stable outlook on the long-term rating and reaffirmed the Company’s long-term issuer credit rating at “BBB-”. Futu’s securities firm in Hong Kong has a stand-alone credit profile of “bbb”. According to S&P, Futu enjoys a strong market position in Hong Kong and is expected ...

Investment Rating - The report assigns a "Buy" rating for Futu Holdings, marking the first coverage of the company [4][22]. Core Insights - Futu Holdings reported a total revenue of HKD 31.29 billion for Q2 2024, representing a year-on-year increase of 25.9% and a quarter-on-quarter increase of 20.69% [4][5]. - The company achieved a Non-GAAP net profit of HKD 12.96 billion, which is an 8.6% increase year-on-year and a 15.6% increase quarter-on-quarter [4][5]. - The brokerage commission and fee income reached HKD 1.376 billion, up 44.5% year-on-year and 27.19% quarter-on-quarter, driven by active trading in global markets [3][5]. - The total trading volume for Q2 2024 was HKD 16.2 trillion, a 69% increase year-on-year and a 21.1% increase quarter-on-quarter [3][5]. - The company has seen strong customer acquisition in Japan and Malaysia, with a total of 404.57 million account users as of Q2 2024, reflecting a 6.12% quarter-on-quarter increase [5][6]. Summary by Sections Financial Performance - Futu Holdings' Q2 2024 gross margin was 81.6%, down 3.3 percentage points year-on-year and 0.3 percentage points quarter-on-quarter, primarily due to a 71.3% increase in interest expenses [3][5]. - The company’s interest income was HKD 1.592 billion, a 13.23% year-on-year increase and a 17.5% quarter-on-quarter increase [3][5]. - Research and development expenses were HKD 374 million, with a research expense ratio of 11.95% [3][5]. Customer Metrics - The number of new funded customers in Q2 2024 was 155,000, with a customer retention rate exceeding 98% [5][6]. - The total customer asset scale reached HKD 579.3 billion, reflecting an 11.86% quarter-on-quarter growth [6][18]. Market Expansion - The company has expanded its cryptocurrency trading services in Hong Kong, allowing investors to trade Bitcoin and Ethereum using local currencies [6][5]. - Futu Holdings has raised its annual guidance for new funded customers from 400,000 to 550,000 due to strong performance in overseas markets [6][5]. Earnings Forecast - Revenue projections for 2024-2026 are estimated at HKD 117.64 billion, HKD 136.11 billion, and HKD 148.40 billion respectively, with Non-GAAP net profits expected to be HKD 53.89 billion, HKD 62.28 billion, and HKD 67.61 billion [6][7].

[Table_Title] 富途控股（FUTU） 入金强劲驱动增长，全球化布局持续深化 [Table_Summary] 核心观点： ⚫ 交投活跃及入金强劲驱动业绩超预期增长。富途控股发布 2024 年中期 业绩，2024Q2 单季度营收 31.29 亿港元，同比+26%，环比+21%；单 季度净利润 12.09 亿港元，同比+8%，环比+17%。主要系客户资产增 长带动经纪佣金收入高增，24Q2 新增客户 15.5 万户，同比+167.8%， 环比-12%；客户资产同比+24.3%达到 5793 亿港元，主因马来西亚、 日本、新加坡及香港获客增长强劲；Q2 户均客户资产 28.4 万港元， 同比-4%，环比+3%；Q2 客户成交额同比+69%至 1.62 万亿港元，主 因其中美股成交同比+83%。 ⚫ 公司持续深化全球化布局并持续优化产品品类。公司 Q2 经纪佣金收 入 13.76 亿港元，同比+44%，佣金率环比略有回升。据公司披露，日 本计划上线 NISA 账户、共同基金等，马来西亚三季度计划上线马股 IPO 打新、货币基金产品，香港新加坡的加密货币渗透率仍有增长空 间。公司 Q2 末融资融券余额 438 ...

获客超预期，再次上调全年净增入金客户数 2024 年 08 月 21 日 ➢ 事件：2024 年 8 月 20 日，公司发布 24Q2 业绩，营收 31.29 亿港元（高 于彭博一致预期 28.6 亿港元），yoy+26%；净利润 12.09 亿港元（高于彭博一 致预期的 11.9 亿港元），yoy+8%；Non-GAAP 净利润 12.96 亿港元（高于彭 博一致预期的 12.43 亿港元），yoy+9%. ➢ Q2 市场情绪回升，交易额反弹驱动经纪佣金收入高增长。1）经纪佣金收入 为 13.8 亿港元，yoy+44%，qoq+27%。24Q2 总交易额 1.6 万亿港元， yoy+69%，qoq+21%，其中美股交易额 1.2 万亿港元，yoy+84%，qoq+19%， 占比总交易额 77%；港股交易额 3576 亿港元，yoy+38%，qoq+28%，占比总 交易额 22%。混合佣金率达到 8.5bp，yoy-1.4bp，qoq+0.4bp。2）利息收入 为 15.9 亿港元，yoy+13%，qoq+18%，增长主要得益于市场情绪回升下，客 户增加交易杠杆驱动两融余额达到 438 亿港元，创历史季度新高 ...

Investment Rating - Buy (Maintained) [1] Core Views - Futu Holdings' 2024H1 performance met expectations with impressive customer acquisition results [1] - Revenue increased by 14.78% YoY to HKD 5.721 billion, while net profit attributable to shareholders decreased by 2.66% YoY to HKD 2.250 billion [2] - Brokerage commission income surged, and interest income remained stable with slight growth [2] - User base expanded significantly, with strong growth in overseas markets [2] - The company is expected to continue expanding its overseas markets and accelerating user growth, with a promising long-term growth outlook [2] Financial Performance Revenue Breakdown - Brokerage commission: HKD 2.5 billion in 2024H1, up 21% YoY, with Q2 2024 up 44% YoY to HKD 1.4 billion [2] - Interest income: HKD 2.9 billion in 2024H1, up 9% YoY, with Q2 2024 up 13% YoY to HKD 1.6 billion [2] - Other income: HKD 300 million in 2024H1, up 25% YoY, with Q2 2024 up 27% YoY to HKD 200 million [2] Costs and Expenses - Operating expenses: HKD 1.05 billion in 2024H1, up 57% YoY, driven by a 97% YoY increase in interest expenses to HKD 690 million [2] - R&D expenses: HKD 710 million in 2024H1, down 1% YoY [2] - Sales expenses: HKD 630 million in 2024H1, up 100% YoY, due to a significant increase in funded customers [2] - Administrative expenses: HKD 660 million in 2024H1, up 7% YoY [2] User Growth - Total users: 230 million in Q2 2024, up 13% YoY [2] - Registered customers: 4.05 million in Q2 2024, up 19% YoY [2] - Funded customers: 2.04 million in Q2 2024, up 29% YoY [2] - Strong growth in Singapore, with user numbers exceeding 1 million, and steady growth in the US, Australia, Canada, Japan, and Malaysia [2] Financial Forecasts - Revenue: Expected to grow from HKD 10.688 billion in 2024E to HKD 13.344 billion in 2026E, with YoY growth rates of 6.79%, 11.89%, and 11.58% respectively [2][7] - Net profit attributable to shareholders: Expected to grow from HKD 4.449 billion in 2024E to HKD 5.600 billion in 2026E, with YoY growth rates of 3.92%, 12.37%, and 12.00% respectively [2][7] - EPS: Expected to increase from HKD 32.26 in 2024E to HKD 40.60 in 2026E [2][7] - P/E ratios: 15.10x for 2024E, 13.43x for 2025E, and 12.00x for 2026E [2][7] Market Data - Closing price: USD 62.52 [4] - 52-week range: USD 45.06 to USD 80.41 [4] - P/B ratio: 2.63x [4] - Market capitalization: USD 5.844 billion [4] Key Financial Metrics - Net asset per share: HKD 19.70 [5] - Asset-liability ratio: 74.70% [5] - Total shares outstanding: 1.103 billion [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was HKD3.1 billion, up 26% from HKD2.5 billion in Q2 2023 [12] - Net income increased by 8% year-over-year to HKD1.2 billion, with a net income margin of 38.6% [16] - Total client assets reached a record HKD579 billion, a 24% year-over-year increase and a 12% quarter-over-quarter increase [9] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD1.4 billion, up 45% year-over-year and 27% quarter-over-quarter, driven by a 69% year-over-year growth in total trading volume [12][13] - Wealth management assets grew by 84% year-over-year to around HKD80 billion, accounting for 14% of total client assets [11] - Margin financing and securities lending balance climbed to an all-time high of HKD44 billion [9] Market Data and Key Metrics Changes - New paying clients in Hong Kong and Singapore recorded double-digit sequential growth, contributing over one-third of paying client growth in Q2 [6] - In Japan, new paying clients grew by double-digit quarter-over-quarter, with a total of close to 800,000 users by the end of Q2 [24] - Total trading volume increased to HKD1.62 trillion, up 69% year-over-year and 21% quarter-over-quarter [10] Company Strategy and Development Direction - The company plans to enhance its product offerings in Japan, including launching NISA savings accounts and mutual funds [8][27] - The recent launch of cryptocurrency trading in Hong Kong and Singapore aims to capitalize on the supportive regulatory environment and rising awareness of virtual assets [7] - The company is focused on building brand equity in Japan to attract more clients, recognizing that Japanese users take longer to trust overseas brands [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the revised guidance of 550,000 new paying clients for 2024, citing strong momentum in client acquisition [5][35] - The company noted that client asset inflows remain robust despite market challenges, with trading volume and turnover velocity showing strong sequential increases [19] - Management acknowledged potential negative implications from market volatility but remains optimistic about client asset allocation trends [36] Other Important Information - The company underwrote seven of the ten largest Hong Kong IPOs in the first half of 2024 [11] - The share repurchase program is set to cover 2024 and 2025, but no shares have been repurchased yet [29] - The company is investing in Airstar Bank to enhance synergies between brokerage and retail banking services [42] Q&A Session Summary Question: Can you provide feedback on crypto trading and client acquisition strategy? - Management noted robust client asset inflows and strong trading volume, with a focus on enhancing product capabilities and investor education in cryptocurrency [20][19] Question: What contributed to the Q-on-Q increase in client assets? - Majority of the increase came from client asset inflows, with Hong Kong and Singapore contributing 80% of total net asset inflow [22][23] Question: What is the outlook for the Malaysian business? - The Malaysian business is showing strong client asset inflows and higher trading turnover, with expectations for steady growth in new paying clients [44][46] Question: What is the breakdown of interest income components? - Interest income is primarily derived from idle cash and margin financing, with both contributing equally [39] Question: What is the strategy for client acquisition costs in 2024? - The company expects client acquisition costs to remain below the guidance range, with a focus on maintaining low levels [38]