FUTU(US:FUTU) HTSC·2025-08-21 05:55Investment Rating - The report maintains a "Buy" rating for the company with a target price of $226.10 per ADS [7][5]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching HKD 10.006 billion, a year-on-year growth of 74.88%, and net profit of HKD 4.720 billion, up 109.73% [1][5]. - The growth is primarily driven by increased trading volumes in overseas markets, rising average customer assets, and continuous customer acquisition [1]. - The company is expected to maintain strong overseas expansion momentum and high market activity, particularly in virtual asset businesses, leading to high performance elasticity for the year [1][5]. Customer Acquisition - As of the end of Q2 2025, the number of funded customers reached approximately 2.877 million, a year-on-year increase of 40.9% [2]. - Over 50% of new funded customers in Q2 came from regions outside Hong Kong, with significant contributions from Malaysia, Singapore, the US, and Japan [2]. - The company has achieved 57.5% of its annual target for new funded customers, with a retention rate of over 98% [2]. Trading Activity - Total trading volume in Q2 2025 reached HKD 3.59 trillion, a year-on-year increase of 121.2% [3]. - The trading volume for US stocks was HKD 2.70 trillion, reflecting a 19.7% quarter-on-quarter growth, while Hong Kong stock trading volume decreased by 9.0% [3]. - Customer total assets increased to HKD 973.9 billion, a year-on-year growth of 68.1% [3]. Innovation and Services - The company has enhanced its product offerings, with total assets under wealth management reaching HKD 163.2 billion, a year-on-year increase of 104.4% [4]. - New products include structured products with principal protection and a range of fixed-income products, as well as cryptocurrency trading services launched in the US [4]. - The company plans to introduce an AI stock screening tool in the future [4]. Profit Forecast and Valuation - The report revises profit forecasts upwards due to optimistic expectations for business growth and improved operational efficiency, projecting net profits of HKD 9.009 billion, HKD 10.865 billion, and HKD 12.004 billion for 2025-2027 [5][11]. - The expected EPS for 2025 is HKD 7.89, with a projected PE ratio of 28x, aligning with comparable companies [5][11].