FUTU(US:FUTU) BOCOM International·2025-08-21 13:14Investment Rating - The report assigns a "Buy" rating for the company, with a target price raised to $220.00, indicating a potential upside of 23.1% from the current price of $178.66 [1][12]. Core Insights - The company has consistently exceeded market expectations in earnings, with a significant increase in net profit for Q2 2025, showing a year-on-year growth of 112.7% and a quarter-on-quarter growth of 20.1% [6]. - The trading volume for Q2 2025 increased by 121% year-on-year and 12% quarter-on-quarter, with the U.S. stock market accounting for 75% of the trading volume [6]. - The company has seen strong growth in its customer base, adding 200,000 asset-holding clients in Q2 2025, a 32% increase year-on-year, with over half of these clients coming from markets outside Hong Kong [6]. - Wealth management assets have also grown significantly, reaching HKD 163.2 billion by the end of Q2 2025, a 104% increase year-on-year [6]. Financial Overview - Revenue projections for the company are as follows: HKD 10,008 million in 2023, HKD 13,590 million in 2024, and HKD 19,854 million in 2025E, reflecting a year-on-year growth of 31%, 36%, and 46% respectively [5][13]. - The net profit is expected to rise from HKD 4,279 million in 2023 to HKD 9,283 million in 2025E, indicating a growth rate of 46% in 2023 and 27% in 2024 [5][13]. - The company’s earnings per share (EPS) are projected to increase from HKD 30.59 in 2023 to HKD 66.35 in 2025E, with a significant growth rate of 70.7% in 2025 [5][14]. Customer and Market Metrics - The number of funded clients is projected to grow from 1,710,106 in 2023 to 3,211,324 in 2025E, with a year-on-year growth rate of 33.2% [8]. - Customer assets are expected to increase from HKD 485.6 billion in 2023 to HKD 1,059.7 billion in 2025E, reflecting a strong growth trajectory [8]. - The average commission rate has remained stable at around 7.18 basis points, contributing to the overall revenue growth [6][7].