UP Fintech Holding(TIGR) 民生证券·2024-07-12 12:01Company Overview - The company is a leading US stock trading platform with rapid growth in both customer quantity and quality [1] - Founded in 2014, the company has expanded its licenses through acquisitions in regions including the US, Australia, Hong Kong, and Singapore [1] - The founder holds high voting rights as the largest shareholder, while Xiaomi is the second-largest shareholder [1] - The company achieved its first profitable quarter in 2023 under Non-GAAP standards [1] Financial Performance - Net revenue grew from 226 million in 2023, with a CAGR of 43% [15] - Commission and interest income remain the primary revenue sources, accounting for 80% of total revenue [15] - In 2023, the company achieved a Non-GAAP net profit of 30.6 billion by the end of 2023, a 118% year-over-year increase [23] Market Expansion - The company entered the Singapore market in 2020 and has maintained a leading position with innovative products like the Tiger Boss card [48] - In Hong Kong, the company has expanded its licenses and is leading in the virtual asset sector [6] - The company has actively expanded into overseas markets, including the US, Australia, and New Zealand, with a relatively complete set of licenses in the US [6] User Growth - The number of funded accounts grew from 110,000 in 2019 to 900,000 in 2023, with a CAGR of 68% [21] - The conversion rate of funded accounts increased from 17% in 2019 to 41% in 2023 [21] - Average customer assets reached $35,000 by Q1 2024, a 77% year-over-year increase [23] Competitive Advantages - The company has a first-mover advantage in Singapore, entering the market earlier than competitors and continuously launching new products to solidify its position [48] - In Hong Kong, the company has made significant progress in virtual asset trading, becoming the first mainstream online brokerage to upgrade its license to include virtual asset trading services [6] - The company's commission rates are competitive, with lower fees compared to traditional brokers in Singapore and Hong Kong [45][46] Industry Trends - The company benefits from the beta resonance of US and Hong Kong stock markets, with commission income driven by market trends and interest income influenced by market interest rates [34] - In Singapore, the company has capitalized on the high proportion of Chinese residents and the growing interest in stock investments [38][39] - Hong Kong is expected to become the world's largest wealth management center by 2025, with a significant portion of assets invested in stocks, providing growth opportunities for the company [49][50]