FUTU(US:FUTU) BOCOM International·2025-05-30 09:48Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $135.00, indicating a potential upside of 25.7% from the current price of $107.36 [1][6][12]. Core Insights - The company's earnings exceeded market expectations, with a year-on-year net profit growth of 107.0% and a quarter-on-quarter growth of 14.6%. Non-GAAP net profit also showed significant growth of 97.7% year-on-year and 13.6% quarter-on-quarter, outperforming Bloomberg consensus estimates by 6% [2][6]. - The strong profit growth is primarily driven by a 140.1% increase in trading volume, which significantly boosted brokerage commission income by 114%. The average commission rate was 7.17 basis points, down 1.15 basis points year-on-year but stable quarter-on-quarter [2][6]. - The company added 262,000 new asset clients in Q1, a year-on-year increase of 47.8% and a quarter-on-quarter increase of 21.9%, with total asset clients reaching nearly 2.7 million [6][8]. - The wealth management business penetration rate is steadily increasing, with a 117.7% year-on-year growth in wealth management assets, accounting for 16.8% of total client assets [6][8]. Financial Overview - Revenue is projected to grow from HKD 10,008 million in 2023 to HKD 16,778 million in 2025, with a compound annual growth rate (CAGR) of 32.5% [5][15]. - Net profit is expected to rise from HKD 4,279 million in 2023 to HKD 7,203 million in 2025, reflecting a CAGR of 30% [5][9]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 27.5 in 2023 to 16.3 in 2025, indicating an attractive valuation compared to peers in the U.S. internet brokerage sector [5][9]. Client and Asset Growth - The number of funded clients is expected to increase significantly, with projections of 3.21 million funded clients by 2025, representing a year-on-year growth rate of 33.2% [8][9]. - Client assets are forecasted to grow from HKD 485.6 billion in 2023 to HKD 963.4 billion in 2025, indicating strong growth potential in asset management [8][9]. Market Position - The company is positioned favorably within the internet brokerage sector, with a significant market share and a robust growth trajectory driven by product line expansion and internationalization efforts [6][9].