Is FUTU's Global Diversification Strategy Yielding Benefits?

Core Insights - Futu Holdings Limited (FUTU) has demonstrated significant growth in its international expansion, with total funded accounts reaching 3.1 million as of September 30, 2025, marking a 42.6% year-over-year increase and an 8.8% sequential increase [1] Group 1: Client Acquisition and Growth - In Q3 2025, FUTU added 254,000 new funded accounts, reflecting a 24.7% sequential growth, with Hong Kong leading in client acquisitions due to strong equity market performance and an active IPO pipeline [2] - Singapore has emerged as the number one retail broker, contributing to sequential growth in newly funded accounts, while Malaysia also played a significant role in account growth [3] - The U.S. market experienced a high-double-digit sequential increase in new funded accounts, indicating strong momentum in key regions [3] Group 2: Financial Performance - Total client assets surged by 79% year-over-year and 27% sequentially in Q3 2025, driven by robust asset inflow [4] - Trading volume increased by 105% year-over-year and 9% sequentially, supported by the expansion of the client base and favorable market conditions [4] - FUTU's revenues skyrocketed by 86.3% year-over-year in Q3 2025, while net income rose by 143.9%, leading to a net income margin expansion of 1,180 basis points compared to the previous year [5] Group 3: Market Performance and Valuation - FUTU's stock price has increased by 99.7% over the past year, outperforming peers and the industry, which has seen a decline of 13.3% [6] - The company trades at a 12-month forward price-to-earnings ratio of 17.15, which is lower than the industry's 23.56 [10] - The Zacks Consensus Estimate for FUTU's earnings for 2025 and 2026 has risen by 6.3% and 7.2%, respectively, over the past 60 days [13]