FUTU(US:FUTU) Soochow Securities·2024-03-14 16:00Investment Rating - The report maintains a "Buy" rating for Futu Holdings [1] Core Views - Futu Holdings reported a significant increase in annual performance, with total revenue reaching HKD 10.008 billion, a year-on-year growth of 31.45%, and net profit attributable to shareholders at HKD 4.281 billion, up 46.28% year-on-year, meeting expectations [2][3] - The company's interest income surged due to high interest rates and an expansion in margin financing, with interest income contributing 52% of total revenue in 2023, up from 42% in 2022 [3] - Despite a decline in brokerage commission income by 2% to HKD 3.9 billion due to a sluggish Hong Kong stock market, the overall performance remained strong due to increased interest income [3] - Futu's international expansion is progressing well, with significant user growth, including a 48% increase in clients with assets, reaching 1.71 million by the end of 2023 [4] - The report slightly lowers profit forecasts for 2024 and 2025, expecting net profits of HKD 44.49 billion and HKD 50 billion respectively, while maintaining a positive long-term growth outlook [4] Financial Summary - Total revenue (in million HKD) for 2023 was 10,008, with a projected increase to 10,688 in 2024 and 11,959 in 2025 [2][9] - Net profit attributable to shareholders (in million HKD) for 2023 was 4,281, with forecasts of 4,449 in 2024 and 5,000 in 2025 [2][9] - The earnings per share (EPS) for 2023 was HKD 29.13, with projections of HKD 30.27 in 2024 and HKD 34.02 in 2025 [2][9] - The price-to-earnings (P/E) ratio for 2024 is estimated at 14.61, decreasing to 11.61 by 2026 [4][9]