UP Fintech Holding(US:TIGR) Soochow Securities·2025-03-19 07:33Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported a significant increase in total revenue for 2024, achieving a year-on-year growth of 44% to reach $392 million, with net profit rising by 86% to $61 million [1]. - In Q4 2024 alone, total revenue surged by 77% year-on-year to $124 million, with net profit of $28 million, a turnaround from a loss of $1.8 million in the same quarter of the previous year [1]. - The increase in revenue is attributed to heightened trading activity in Hong Kong and U.S. markets, leading to a 72% rise in commission income to $159 million and a 28% increase in interest income to $192 million [8]. Revenue and Profitability - The company’s total revenue is projected to grow from $273 million in 2023 to $525 million in 2025, with a compound annual growth rate (CAGR) of 34.1% [1]. - Net profit is expected to increase from $61 million in 2024 to $96 million in 2025, reflecting a growth rate of 58% [1]. - Earnings per share (EPS) is forecasted to rise from $0.02 in 2024 to $0.03 in 2025 [1]. Business Segments - Commission income is anticipated to grow from $159 million in 2024 to $210 million in 2025, while interest income is expected to increase from $192 million to $270 million in the same period [20]. - The company has seen a substantial increase in customer engagement, with the number of funded clients rising to 1.09 million, a 21% increase year-on-year [8]. Cost Structure - Total operating costs and expenses increased by 31% year-on-year to $252 million in 2024, driven by higher trading volumes and global business expansion [8]. - Key cost components include a 61% rise in settlement and execution fees, a 21% increase in salary and benefits, and a 26% increase in commission and market data expenses [8]. Market Position and Innovation - The company is actively enhancing user experience through product innovations, such as the launch of the Cash Boost trading account and the approval of its cryptocurrency platform in Hong Kong [8]. - The integration of AI technology into its investment platform positions the company as a leader in adopting advanced trading solutions [8]. Valuation Metrics - The current market capitalization is approximately $1.8 billion, with a price-to-earnings (P/E) ratio projected to decrease from 29.46 in 2024 to 18.59 in 2025, indicating potential for value appreciation [1][20]. - The report highlights a favorable long-term growth outlook, supported by the company's expansion into overseas markets and user base growth [8].