FUTU(US:FUTU) Guohai Securities·2024-08-23 15:38Investment 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].