FUTU(US:FUTU) Orient Securities·2024-08-26 13:48Investment 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].