FUTU(US:FUTU) HTSC·2025-03-14 03:55Investment Rating - The report maintains a "Buy" rating for the company with a target price of $142.82 per ADS [8][9]. Core Insights - The company reported a significant increase in Q4 performance, with revenue reaching HKD 44.3 billion, up 86.8% year-on-year and 29.0% quarter-on-quarter, and net profit of HKD 18.7 billion, up 113.1% year-on-year and 41.7% quarter-on-quarter [1]. - The strong performance is attributed to accelerated customer acquisition overseas and a notable increase in trading volumes in Hong Kong and the US markets [1][2]. - The company has seen a robust customer growth momentum, with a total of 241,000 new funded users added in Q4, marking a 41% year-on-year increase in total funded users [2]. - The trading volume in Q4 reached HKD 2.9 trillion, a 202% increase year-on-year, driven by a favorable market environment [3]. - The company has introduced innovative services, such as zero financing rates for new stock subscriptions in Hong Kong, which has helped increase its market share [4]. Summary by Sections Financial Performance - For the fiscal year 2024, the company reported revenues of HKD 135.9 billion, a 35.8% increase year-on-year, and a net profit of HKD 54.4 billion, a 27.1% increase year-on-year [1][7]. - The projected net profits for 2025, 2026, and 2027 are HKD 62.2 billion, HKD 68.7 billion, and HKD 73.7 billion respectively, reflecting a positive growth trajectory [5][7]. Customer Acquisition and Market Expansion - The company achieved a record high in customer assets, reaching HKD 743.3 billion, a 53% increase year-on-year, with significant growth in overseas markets, particularly in Singapore, Japan, Canada, Malaysia, and Australia [2]. - Management has set a target to acquire an additional 800,000 customers by 2025 [2]. Trading Volume and Market Activity - The trading volume in Q4 was significantly boosted by the rising market conditions, with the Hong Kong stock trading volume exceeding HKD 750 billion, the highest in nearly three years [3]. - The introduction of cryptocurrency trading has also contributed to the increase in trading volumes, with substantial growth in account balances [3]. Innovation and Service Development - The company has launched several innovative financial products and services, enhancing its competitive edge in the market [4]. - The assets under management (AUM) in wealth management reached HKD 110.9 billion, a 93% increase year-on-year [4]. Valuation and Earnings Forecast - The report projects an EPS of HKD 5.56 for 2025, with a corresponding PE ratio of 25x, aligning with the average PE of comparable companies [5][13].