Core Insights - Futu Holdings Limited (FUTU) is highlighted as a company of interest, with a history of trading and a current long position held by the analysts at BAD BEAT Investing [1] - BAD BEAT Investing is a group of analysts with nearly 12 years of experience, known for their market calls and focus on both long and short trades [1] - The group emphasizes teaching investors to become proficient traders, providing in-depth research and clear entry and exit targets [1] Company Overview - Futu Holdings Limited is covered by BAD BEAT Investing approximately once a year, indicating a strategic interest in the company [1] - The analysts at BAD BEAT Investing have a diverse background in business, policy, economics, mathematics, game theory, and sciences, enhancing their research capabilities [1] Investment Strategy - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] - The group provides weekly well-researched trade ideas, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [1] - The goal of BAD BEAT Investing is to save time for investors by offering high-quality research and trading tools [1]

Group 1 - The article promotes BAD BEAT Investing, offering a limited-time 20% discount for new members, emphasizing the availability of analysts during market hours to assist traders [1] - Futu Holdings Limited (FUTU) is highlighted as a company that has been covered periodically, with a history of trading and a current house position held by the analysts [1] - The investment team at BAD BEAT Investing consists of seven analysts with diverse expertise, known for their successful market calls and a long-term investment strategy [1] Group 2 - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades, aiming to educate investors on trading proficiency [1] - The benefits of joining BAD BEAT Investing include access to well-researched trade ideas, chat rooms, daily analyst summaries, and trading tools [1] - The analysts have a beneficial long position in FUTU, indicating a personal investment interest in the company [1]

Core Viewpoint - A French court has dismissed a case against Nestle's Perrier mineral water, which was initiated by a consumers group seeking to have the sparkling water removed from the market [1] Group 1 - The court's decision indicates a legal victory for Nestle in the ongoing scrutiny of its products [1] - The consumers group aimed to challenge the market presence of Perrier, reflecting ongoing consumer advocacy in the beverage industry [1]

Market Overview - The U.S. stock market is experiencing a significant downturn, with a pervasive "risk-off" sentiment driven by concerns over high valuations in AI-related stocks and diminishing expectations for a Federal Reserve interest rate cut [1][5] - All three major U.S. indexes are sharply lower for a second consecutive session, with technology shares particularly affected [1] Major Index Performance - The Dow Jones Industrial Average (DJIA) has dropped approximately 450 points, or 0.9%, reaching a one-month low after a 1.2% decline on Monday [2] - The S&P 500 (SPX) is down 0.6% at midday, falling below its 50-day moving average for the first time in 139 sessions [3] - The Nasdaq Composite (IXIC) is down 1% midday, extending its losses for November and also breaking below its 50-day moving average [4] Investor Sentiment - The prevailing market sentiment is one of caution and uncertainty, with investors pulling back on riskier assets, particularly in high-growth tech and AI sectors [5][9] - The CBOE Volatility Index (VIX) surged 12.86% on Monday, reflecting heightened investor anxiety [4] Upcoming Market Events - Nvidia (NVDA) is set to report quarterly earnings, viewed as a crucial "litmus test" for the AI-driven rally [7] - Retail earnings reports from companies like TJX, Lowe's, Target, Walmart, and Gap are expected to provide insights into consumer spending [7] - The release of the Federal Open Market Committee (FOMC) meeting minutes will be closely scrutinized for clues regarding future interest rate decisions [7] Company-Specific Developments - Nvidia shares are down 2.3% today, adding to a nearly 2% drop yesterday, bringing its total loss for the month to 10.8% [6] - Home Depot (HD) shares fell 3.5% after reporting disappointing third-quarter profit and cutting its full-year outlook [12] - Alphabet (GOOGL) shares rose about 1% after announcing its latest AI model, Gemini 3, following a significant purchase of shares by Berkshire Hathaway [12] - Apple (AAPL) received a boost from strong iPhone 17 sales in China, marking its best month of market share in the region in three years [12] - Baidu (BIDU) reported solid growth in its AI Cloud segment, demonstrating the transformative value of AI across its portfolio [12] - Futu Holdings (FUTU) reported total revenues up 86.3% year-over-year and net income increasing by 143.9% [12]

Core Insights - Futu Holdings Ltd. reported strong financial performance in Q3 2025, with earnings per share of $3.02, exceeding estimates of $2.63, and revenue of approximately $823 million, surpassing the estimated $713 million [1][6] Financial Performance - Net income increased by 137% year-over-year to $425.7 million, showcasing the company's ability to capitalize on market opportunities [2][6] - Total trading volume rose by 104.8% year-over-year, reaching HK$3.90 trillion, indicating a robust position in the online brokerage sector [4][6] Operational Metrics - Funded accounts surged by 42.6% year-over-year, totaling over 3.1 million by the end of September 2025 [2][6] - The number of brokerage accounts increased by 30.8% year-over-year, totaling more than 5.6 million [3][6] - The user base expanded by 16.8%, bringing the total number of users to 28.2 million [3] Client Assets - Total client assets grew by 78.9% year-over-year, amounting to HK$1.24 trillion [3] - Daily average client assets in Q3 were HK$1.10 trillion, marking an 85.3% increase from the same period in the previous year [3] Valuation Metrics - The price-to-earnings (P/E) ratio is approximately 23.08, reflecting the market's valuation of the company's earnings [4] - The price-to-sales ratio stands at about 10.78, while the enterprise value to sales ratio is around 10.99 [5] - Futu maintains a low debt-to-equity ratio of 0.29 and a current ratio of about 1.18, indicating its ability to cover short-term liabilities [5]

Group 1: Stock Recommendations - Geely Automobile (175 HK) has a target price of 25.00, indicating a potential upside of 47% with a PE ratio of 9.50[5] - Luckin Coffee (LKNCY US) has a target price of 44.95, suggesting a potential upside of 12% with a PE ratio of 30.00[5] - Alibaba (BABA US) has a target price of 209.40, indicating a potential upside of 33% with a PE ratio of 22.50[5] Group 2: Market Performance - The basket of 24 long positions had an average return of -3.4%, while the MSCI China Index returned -0.8%[9] - Among the 24 stocks, only 5 outperformed the benchmark[9] Group 3: Analyst Ratings - New additions include companies like Bosideng (3998 HK) and Futu Holdings (FUTU US), both rated as "Buy"[6] - The report indicates a focus on sectors such as technology, insurance, and consumer goods, with multiple stocks receiving "Buy" ratings[5][6]

Financial Performance - Total revenues rose by 86.3% year-over-year to HK$6,402.9 million (US$822.9 million) in Q3 2025[8] - Net income surged by 143.9% year-over-year to HK$3,217.2 million (US$413.5 million) in Q3 2025[17] - Total revenues for the three months ended September 30, 2025, reached HK$6,402,900, representing a significant increase from HK$3,436,132 in the same period of 2024, marking an 86% year-over-year growth[40] - Net income for the nine months ended September 30, 2025, was HK$7,932,464, compared to HK$3,563,597 for the same period in 2024, reflecting a 123% increase[40] - Brokerage commission and handling charge income for the three months ended September 30, 2025, was HK$2,913,819, up from HK$1,528,910 in the same period of 2024, indicating an increase of 90%[40] - Interest income for the three months ended September 30, 2025, amounted to HK$3,045,019, compared to HK$1,698,761 in the same period of 2024, representing an increase of 79%[40] - The company reported a gross profit of HK$5,609,222 for the three months ended September 30, 2025, compared to HK$2,811,252 for the same period in 2024, marking a 100% increase[40] - For the three months ended September 30, 2025, the net income attributable to ordinary shareholders increased to HK$3,217,200, representing a 143% increase from HK$1,319,166 in the same period of 2024[43] - Adjusted net income for the nine months ended September 30, 2025, reached HK$8,189,212, a 130% increase compared to HK$3,563,597 for the same period in 2024[47] - The basic net income per share for the nine months ended September 30, 2025, was HK$7.13, up from HK$3.24 in the same period of 2024, reflecting a 120% increase[43] - The diluted net income per ADS for the three months ended September 30, 2025, was US$2.93, compared to US$0.37 for the same period in 2024, marking a significant increase[43] - The basic net income per share for the three months ended September 30, 2025, was HK$2.90, compared to HK$1.20 for the same period in 2024, reflecting a 142% increase[43] - The total comprehensive income attributable to ordinary shareholders for the three months ended September 30, 2025, was HK$3,068,339, compared to HK$1,441,210 for the same period in 2024, showing substantial growth[43] - Total comprehensive income for the nine months ended September 30, 2025, was HK$8,166,177, compared to HK$3,586,477 for the same period in 2024, indicating a strong growth trajectory[43] User and Account Growth - Total funded accounts increased by 42.6% year-over-year to 3,131,450 as of September 30, 2025[6] - The number of users increased by 16.8% year-over-year to 28.2 million as of September 30, 2025[6] Trading and Asset Management - Daily average client assets reached HK$1.10 trillion, an increase of 85.3% from the same period in 2024[6] - Total trading volume in Q3 2025 increased by 104.8% year-over-year to HK$3.90 trillion[6] - Wealth management asset balance expanded to HK$175.6 billion, up 7.6% quarter-over-quarter[7] - Margin financing and securities lending balance rose by 55.2% year-over-year to HK$63.1 billion as of September 30, 2025[6] Expenses and Liabilities - Operating expenses for the three months ended September 30, 2025, totaled HK$1,704,840, compared to HK$1,079,945 in the same period of 2024, representing a 58% increase[40] - Total current assets as of September 30, 2025, were HK$238,858,321, up from HK$155,885,885 as of December 31, 2024, showing a growth of 53%[34] - Total liabilities as of September 30, 2025, were HK$206,583,547, compared to HK$130,752,472 as of December 31, 2024, reflecting a 58% increase[38] - Total shareholders' equity as of September 30, 2025, was HK$36,795,723, up from HK$28,011,241 as of December 31, 2024, indicating a growth of 31%[38] Research and Development - Research and development expenses increased by 49.3% year-over-year to HK$574.2 million, driven by investments in crypto and AI capabilities[14] Shareholder Actions - The company plans to repurchase up to US$800 million worth of its ADSs over a 24-month period starting after the current program expires[20] Other Financial Adjustments - Share-based compensation expenses for the nine months ended September 30, 2025, totaled HK$256,748, up from HK$252,040 in the same period of 2024[47] - The company reported a foreign currency translation adjustment loss of HK$158,939 for the three months ended September 30, 2025[43]

Financial Data and Key Metrics Changes - The company concluded Q3 2025 with 3.13 million funded accounts, a 43% year-over-year and 9% quarter-over-quarter increase [3] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter, driven by robust net asset inflow and appreciation in client stock holdings [10] - Total revenue was HKD 6.4 billion, an 86% increase from HKD 3.4 billion in Q3 2024 [21] - Net income increased by 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with a net income margin of 50.1% [26] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter, primarily driven by higher trading volume [21] - Interest income was HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [22] - Crypto trading volume surged 161% sequentially, with Ethereum trading volume quadrupling during the quarter [14] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts for four consecutive quarters, with the highest quarterly net client acquisition since Q1 2021 [5] - In Singapore, new funded accounts showed steady sequential growth, leading peers in daily active users [7] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [9] Company Strategy and Development Direction - The company aims to enhance its brand recognition and product experience across all markets, focusing on sophisticated active traders in the U.S. [52] - The integration of Airstar Bank is expected to improve client stickiness and enhance the one-stop financial services platform [60] - Continued investment in Crypto and AI capabilities is planned to optimize client experience and operational efficiency [47] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition costs and trends, indicating robust momentum in net asset inflows despite market fluctuations [31] - The company anticipates continued growth in Crypto trading, driven by broadening token offerings and potential new business lines like derivatives [40] - Management highlighted the importance of regulatory approvals for future product launches in the Crypto space [64] Other Important Information - The company hosted its annual flagship offline investor event, Moof Fest, attracting over 28,000 investors [7] - The average customer acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [31] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of client asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [31] Question: Interest income drivers and Crypto business contribution - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from hard-to-borrow stocks [36] - Crypto trading volume and AUM saw triple-digit growth across markets, with new functions and token offerings contributing to this expansion [38] Question: R&D and G&A cost increases - R&D and G&A expenses increased due to investments in Crypto and AI capabilities, as well as preparations for new market entries [47] Question: Client profile and regional mix of AUM - Hong Kong and Malaysia contributed around 50% of new funded accounts, with a notable increase in high net worth clients [51] Question: Airstar Bank's strategic role - Airstar Bank's integration is expected to enhance customer experience and product offerings, with plans for continued investment in the bank [60]

Financial Data and Key Metrics Changes - The company concluded Q3 2025 with 3.13 million funded accounts, a 43% year-over-year and 9% quarter-over-quarter increase [3][5] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter, driven by robust net asset inflow and appreciation in client stock holdings [10] - Total revenue was HKD 6.4 billion, an 86% increase from HKD 3.4 billion in Q3 2024 [21] - Net income increased by 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with a net income margin of 50.1% [26] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter, primarily driven by higher trading volume [21] - Interest income was HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest income from securities borrowing and margin financing [22] - Crypto trading volume surged 161% sequentially, with Ethereum trading volume quadrupling during the quarter [14] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts for four consecutive quarters, with the highest quarterly net client acquisition since Q1 2021 [5][6] - In Singapore, new funded accounts posted steady sequential growth, leading peers in daily active users [7] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased activity in derivatives trading [9] Company Strategy and Development Direction - The company aims to enhance brand recognition and product experience across all markets, focusing on sophisticated active traders in the U.S. [52] - The integration of Airstar Bank is expected to improve client stickiness and wallet share, positioning the company as a one-stop financial services platform [60] - Continued investment in crypto and AI capabilities is planned to optimize product offerings and enhance operational efficiency [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition costs and momentum, despite recent market pullbacks [32] - The company anticipates continued strong performance in client asset inflows and trading activity, driven by favorable market dynamics [31][39] - Management highlighted the potential for significant growth in the crypto business, contingent on regulatory approvals and product offerings [40] Other Important Information - The company hosted its annual flagship offline investor event, Moof Fest, attracting over 28,000 investors [7] - The average customer acquisition cost in Q3 was around HKD 2,300, slightly up quarter-over-quarter but still within the full-year target range [31] Q&A Session Summary Question: Breakdown of client assets performance and customer acquisition cost trends - Management indicated that one-third of asset growth came from net client inflows, with the remaining two-thirds from market fluctuations. The customer acquisition cost was slightly higher than Q2 but remains within the full-year target [29][31] Question: Drivers behind strong interest income growth - Interest income growth was attributed to client idle cash, margin financing, and securities borrowing, with strong momentum observed in the market [34][36] Question: Insights on crypto business contribution and future growth drivers - The crypto business saw broad-based growth across markets, with new functions and token offerings driving increased trading volume and AUM [38][40] Question: Plans for investment in R&D and G&A costs - Management noted that R&D and G&A expenses increased due to investments in crypto and AI capabilities, as well as preparations for new market entries [46][47] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed a continued upward trajectory in average client assets, with robust net asset inflows from existing clients [66][68] Question: Regional mix of client AUM and net inflow - Hong Kong's contribution to net asset inflow slightly decreased, with strong inflows from Singapore and Malaysia, and an increase in high net worth clients [56][58]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was HKD 6.4 billion, an increase of 86% from HKD 3.4 billion in Q3 2024 [13] - Net income rose by 143% year-over-year to HKD 3.2 billion, with a net income margin expanding to 50.1% from 38.4% in the same quarter last year [17] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter [7] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter [13] - Interest income increased to HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [14] - Total trading volume rose 105% year-over-year to HKD 3.9 trillion, with crypto trading volume surging 161% sequentially [8][9] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts, with the highest quarterly net client addition since Q1 2021 [4] - Singapore led peers in daily active users (DAUs) and continued to see steady growth in new funded accounts [5] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [6] Company Strategy and Development Direction - The company aims to enhance its product offerings and client experience, particularly in crypto and AI capabilities [16][34] - Futu is focusing on integrating banking services through Airstar Bank to improve client stickiness and expand service offerings [46] - The company is optimistic about the growth potential in the crypto market, with plans to broaden token offerings and explore derivatives [28][50] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition momentum and cost trends, despite a slight increase in customer acquisition costs [20][21] - The company noted that market fluctuations have impacted asset inflows, but robust client acquisition momentum remains [20] - Management highlighted the importance of regulatory developments in shaping future product offerings, particularly in the crypto space [49] Other Important Information - The company hosted its annual investor events, attracting over 28,000 investors, enhancing brand recognition in the region [5] - The average client acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [20] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [20] Question: Drivers behind strong interest income growth - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from the securities borrowing business [23][25] Question: Insights on crypto business contribution and future growth - Crypto trading volume saw triple-digit growth across markets, with new features and token offerings expected to drive further expansion [26][28] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed an upward trajectory in average client assets, with trading behavior influenced by market performance [54] Question: Gross margin trends in international markets - Operating margins in Singapore have consistently topped 60%, indicating strong operating leverage as the company scales [56]