Core Viewpoint - Yunqi Capital Ltd has completely exited its position in Futu Holdings Limited, selling 130,000 shares for a net position change of approximately $16.07 million as of September 30, 2025 [1][2][6] Company Overview - Futu Holdings Limited is a leading digital financial services platform with a strong presence in Hong Kong and expanding internationally [6][8] - As of November 20, 2025, Futu's market capitalization is $21.41 billion, with trailing twelve months (TTM) revenue of $2.68 billion and net income of $1.26 billion [4][6] - The company's forward price-to-earnings ratio is 15.3 [7] Financial Performance - Futu Holdings' shares closed at $153.79 on November 20, 2025, reflecting a 76.79% increase over the past year, significantly outperforming the S&P 500 by 70.95 percentage points [7] - The company reported a year-over-year increase in total client assets by 78.9% and a third-quarter revenue jump of 86.3% [12] - Net income surged by 143.9% to $413 million in the same period [12] Investment Strategy - Yunqi Capital's sale of Futu Holdings represented approximately 9.4% of its 13F reportable assets under management (AUM), with the position previously accounting for about 11.5% of AUM [6][7] - Following the sale, Futu Holdings now represents 0% of Yunqi Capital's reportable assets under management [7] Business Model - Futu Holdings operates a tech-driven online brokerage and wealth management platform, targeting both retail and institutional investors [8][10] - The company generates revenue primarily from brokerage commissions, margin lending, and distribution fees from wealth management products [8][15]

Core Insights - Futu Holdings Ltd. reported strong financial performance in Q3 2025, with earnings per share of $3.02, exceeding estimates of $2.63, and revenue of approximately $823 million, surpassing the estimated $713 million [1][6] Financial Performance - Net income increased by 137% year-over-year to $425.7 million, showcasing the company's ability to capitalize on market opportunities [2][6] - Total trading volume rose by 104.8% year-over-year, reaching HK$3.90 trillion, indicating a robust position in the online brokerage sector [4][6] Operational Metrics - Funded accounts surged by 42.6% year-over-year, totaling over 3.1 million by the end of September 2025 [2][6] - The number of brokerage accounts increased by 30.8% year-over-year, totaling more than 5.6 million [3][6] - The user base expanded by 16.8%, bringing the total number of users to 28.2 million [3] Client Assets - Total client assets grew by 78.9% year-over-year, amounting to HK$1.24 trillion [3] - Daily average client assets in Q3 were HK$1.10 trillion, marking an 85.3% increase from the same period in the previous year [3] Valuation Metrics - The price-to-earnings (P/E) ratio is approximately 23.08, reflecting the market's valuation of the company's earnings [4] - The price-to-sales ratio stands at about 10.78, while the enterprise value to sales ratio is around 10.99 [5] - Futu maintains a low debt-to-equity ratio of 0.29 and a current ratio of about 1.18, indicating its ability to cover short-term liabilities [5]

Financial Data and Key Metrics Changes - The company concluded Q3 2025 with 3.13 million funded accounts, a 43% year-over-year and 9% quarter-over-quarter increase [3] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter, driven by robust net asset inflow and appreciation in client stock holdings [10] - Total revenue was HKD 6.4 billion, an 86% increase from HKD 3.4 billion in Q3 2024 [21] - Net income increased by 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with a net income margin of 50.1% [26] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter, primarily driven by higher trading volume [21] - Interest income was HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [22] - Crypto trading volume surged 161% sequentially, with Ethereum trading volume quadrupling during the quarter [14] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts for four consecutive quarters, with the highest quarterly net client acquisition since Q1 2021 [5] - In Singapore, new funded accounts showed steady sequential growth, leading peers in daily active users [7] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [9] Company Strategy and Development Direction - The company aims to enhance its brand recognition and product experience across all markets, focusing on sophisticated active traders in the U.S. [52] - The integration of Airstar Bank is expected to improve client stickiness and enhance the one-stop financial services platform [60] - Continued investment in Crypto and AI capabilities is planned to optimize client experience and operational efficiency [47] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition costs and trends, indicating robust momentum in net asset inflows despite market fluctuations [31] - The company anticipates continued growth in Crypto trading, driven by broadening token offerings and potential new business lines like derivatives [40] - Management highlighted the importance of regulatory approvals for future product launches in the Crypto space [64] Other Important Information - The company hosted its annual flagship offline investor event, Moof Fest, attracting over 28,000 investors [7] - The average customer acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [31] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of client asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [31] Question: Interest income drivers and Crypto business contribution - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from hard-to-borrow stocks [36] - Crypto trading volume and AUM saw triple-digit growth across markets, with new functions and token offerings contributing to this expansion [38] Question: R&D and G&A cost increases - R&D and G&A expenses increased due to investments in Crypto and AI capabilities, as well as preparations for new market entries [47] Question: Client profile and regional mix of AUM - Hong Kong and Malaysia contributed around 50% of new funded accounts, with a notable increase in high net worth clients [51] Question: Airstar Bank's strategic role - Airstar Bank's integration is expected to enhance customer experience and product offerings, with plans for continued investment in the bank [60]

Core Insights - Futu Holdings Ltd. reported Q3 2025 earnings with revenues of US$822.9 million, an increase of 86.3% year-over-year, and non-GAAP adjusted net income of US$425.7 million, up 136.9% YoY [1][2] User Growth and Market Expansion - As of September 30, 2025, the company had 28.16 million registered users, 5.61 million brokerage accounts, and 3.13 million funded accounts, with total client assets reaching US$159.5 billion, a 27% increase quarter-over-quarter and 79% year-over-year [2] - The company experienced significant growth in funded accounts in Malaysia, Japan, and Canada, while Australia and New Zealand saw strong user base expansion, with Moomoo becoming the most downloaded trading app in Australia [3] Trading Volume and Market Performance - Trading volume across all asset classes surged to US$501.3 billion, a 105% increase YoY, with US equities and Hong Kong equities recording volumes of US$334 billion and US$153 billion, up 70% and 243% YoY, respectively [4] - Cryptocurrency assets increased by 90% in size compared to the previous quarter, with trading volume and number of traders growing by 161% and 87% QoQ [4] Innovation and Product Development - The company enhanced its platforms with advanced technologies, becoming the first brokerage to integrate AI capabilities in Canada, Australia, and Malaysia, achieving a 90% satisfaction rate from users [5] - New features included US stock over-the-counter trading for Malaysian investors and seamless reinvestment options for Japanese investors, alongside a subscription service for US IPOs [6] Product Diversification - Moomoo expanded its product offerings, providing access to Bursa derivatives in Malaysia, launching a flexible credit income fund in Singapore, and adding Solana trading in Hong Kong [7] Community Engagement - The company integrated digital platforms with offline experiences, highlighted by the MooFest event attracting 28,000 investors, reinforcing its role in financial education [8][9] Industry Recognition - Moomoo received multiple awards, including "WealthTech of the Year" and "Best Brokerage for Beginner Investors," and achieved high user ratings across various markets [10][11]

Core Insights - Futu Holdings Limited reported strong growth in its third quarter of 2025, with significant increases in client accounts, trading volume, and financial metrics, driven by robust market conditions and strategic initiatives [1][3][4]. Operational Highlights - The company added 254,000 net new funded accounts, representing a 24.7% increase quarter-over-quarter, bringing total funded accounts to 3.1 million, a 42.6% increase year-over-year [3][4]. - Client acquisition improved across all markets, with Hong Kong leading in new client additions due to strong equity market performance and a robust IPO pipeline [3][4]. - The company enhanced product localization in Malaysia, contributing to its growth, and saw significant increases in U.S. business, with new funded accounts growing in double digits [3][4]. Financial Highlights - Total client assets reached HK$1.24 trillion, up 78.9% year-over-year and 27.4% quarter-over-quarter, driven by mark-to-market gains and net asset inflows [3][4]. - Total trading volume hit a record HK$3.90 trillion, an increase of 104.8% year-over-year, with U.S. stock turnover at HK$2.60 trillion and Hong Kong stock trading volume at HK$1.19 trillion, up 42.9% sequentially [4][6]. - Total revenues increased by 86.3% year-over-year to HK$6,402.9 million (US$822.9 million), with gross profit rising 99.5% to HK$5,609.2 million (US$720.9 million) [5][11]. Income Metrics - Net income surged 143.9% year-over-year to HK$3,217.2 million (US$413.5 million), with a net income margin of 50.2%, up from 38.4% in the previous year [16][18]. - Non-GAAP adjusted net income increased by 136.9% year-over-year to HK$3,312.5 million (US$425.7 million) [17][18]. Share Repurchase Program - The board of directors authorized a new share repurchase program allowing the company to repurchase up to US$800 million worth of its American Depositary Shares (ADSs) over a 24-month period [19][20].

Core Insights - Symbotic and Futu Holdings are key players in the Zacks Technology Services industry, with Symbotic focusing on AI-driven robotics for supply-chain optimization and Futu leveraging AI for client acquisition in its trading platforms [1][2] Symbotic (SYM) - Symbotic has a substantial backlog of $22.4 billion, providing strong visibility for future revenue generation [4] - The company expects to recognize approximately 11% of its remaining performance obligations as revenues over the next 12 months and 56% over the subsequent 13-60 months [4] - Revenues grew by 26% year over year, with projections for the fourth quarter of fiscal 2025 estimating revenues between $590 million and $610 million [5] - Despite the positive revenue growth, Symbotic experienced a negative earnings surprise in the third quarter, with an average negative surprise of 78.3% over the past four quarters [6] - Symbotic's premium valuation reflects investor optimism regarding its growth and profitability prospects, although it is considered relatively overvalued compared to industry averages [14][11] Futu Holdings (FUTU) - Futu added nearly 262,000 funded accounts in the first quarter of 2025, bringing the total to 2.7 million, a 42% increase year over year [7] - The growth trend continued into the second quarter, with 2.9 million funded accounts, up 41% year over year [7] - Management projects 800,000 net new funded accounts for 2025, with over 50% of funded accounts coming from clients outside Hong Kong [8] - The United States and Singapore represent the largest shares of international accounts, contributing to a diversified customer base and reduced concentration risk [9] Comparative Analysis - Symbotic has outperformed Futu Holdings in terms of recent price performance [10][11] - However, Futu Holdings is considered to have a better valuation, with a Value Score of B compared to Symbotic's Value Score of F [14] - Symbotic is ranked 2 (Buy) by Zacks, while Futu Holdings holds a 3 (Hold) rating [18]

Group 1: Market Overview - The Hang Seng Index closed at 25,911, up 1.84% for the day and 29.17% year-to-date, while the Hang Seng Tech Index rose 2.57% for the day and 35.97% year-to-date [1] - The Chinese stock market rebounded, with sectors like consumer discretionary and staples leading gains, while telecommunications, utilities, and energy lagged [3] - Southbound capital saw a net sell of 5.44 billion HKD, with notable net sells in Hang Seng China Enterprises, Tracker Fund, and SMIC, while Alibaba, Huahong Semiconductor, and Xiaomi received significant net buys [3] Group 2: Economic Insights - The Chinese economy shows signs of weak credit demand, with M1 growth indicating improved business activity, while the central bank is expected to maintain a loose liquidity policy [4][5] - CPI showed a slight recovery, indicating a slow revival in consumer demand, while PPI decline has narrowed due to rising upstream mining prices [4] - The report anticipates a policy easing window in Q4 2025, with expected reductions in LPR and reserve requirement ratios to support consumption and the real estate market [5] Group 3: Company Analysis - Futu Holdings - Futu Holdings is a leading technology-driven financial services platform, covering eight major markets and providing services like securities trading and wealth management [6] - The company is expected to achieve a compound annual growth rate (CAGR) of 12% in revenue and 14% in Non-GAAP net profit from FY25 to FY28, driven by growth in asset clients and improved operational efficiency [5][6] - Futu's AUM in virtual assets reached 4 billion HKD in Q2 2025, with projections indicating it could contribute 2.4 to 3.1 billion HKD in incremental revenue by 2027 [7] Group 4: Investment Rating - The report initiates coverage on Futu Holdings with a "Buy" rating and a target price of 224 USD, supported by its global expansion and strong growth in core business segments [6][7] - The company is currently trading at a significant discount compared to peers, with a P/E ratio of 19x/17x for FY25E/FY26E, presenting an attractive entry point for investors [7]

Core Insights - Moomoo has become the most downloaded trading app in Australia for 2025, surpassing all other share-trading platforms [1][2] - The platform has achieved significant growth in downloads, clients, and trading volume since its launch in 2022 [3] Company Performance - Moomoo's app has accumulated 193,000 downloads, leading the market ahead of competitors like CommSec Mobile with 188,000 downloads and Stake with 131,000 downloads [5] - The platform differentiates itself through advanced AI, professional-level trading tools, access to over 26,000 shares and ETFs, low fees, and extensive customer support [3][7] Market Position - Moomoo aims to maintain and enhance its leading position in the Australian and New Zealand markets into 2026 and beyond [4] - The company has already achieved the number one status in Singapore and Hong Kong, indicating a strong international presence [4][7]

Core Insights - Futu Holdings Limited (FUTU) has integrated AI into its Moomoo and Futubull platforms to enhance client acquisition and improve offerings for retail and high-net-worth (HNW) investors [1] Group 1: AI Integration and Client Growth - The launch of Futubull AI in March 2025 led to approximately 2 million user queries processed by the end of the quarter, with a 3X increase in adoption from Q1 2025 [2] - AI-driven products provide real-time insights, improving market research and enhancing customer experience, making FUTU a preferred choice for retail investors [3] - HNW clients in Singapore experienced a 40% quarter-over-quarter increase in net inflows, indicating the effectiveness of AI products [4] Group 2: Financial Performance - As of Q2 2025, FUTU reported a 40% year-over-year growth in funded accounts and a 68% increase in total clients, with a quarterly retention rate above 98% [5] - The company's top line surged 69.7% year-over-year in the June quarter, driven by brokerage commissions and subscription services supported by AI insights [5] - Net income increased by 105% year-over-year, with margins expanding by 980 basis points, showcasing the impact of AI on profitability [6] Group 3: Market Performance and Valuation - FUTU's stock price increased by 130% over the past six months, outperforming competitors and the industry, which saw increases of 94.8% and 31.3%, respectively [7] - The company trades at a forward price-to-earnings ratio of 19.06, lower than the industry average of 31.02, and significantly lower than Agora and Skillsoft [11] - The Zacks Consensus Estimate for FUTU's earnings for 2025 and 2026 has risen by 10.7% and 9.9%, respectively, over the past 60 days [14]

Market Overview - A-shares showed mixed performance with the Shanghai Composite Index rising 0.13% to 3,771 points, marking a 10-year high[13] - U.S. stocks fell for the fifth consecutive day, with the Dow Jones down 0.34% to 44,785 points and the S&P 500 down 0.40% to 6,370 points[7] - European markets exhibited divergence, with the Stoxx 600 index closing nearly flat, while the UK FTSE 100 rose 0.23%[7] Economic Indicators - U.S. manufacturing expanded at the fastest pace since 2022, while initial jobless claims indicated a weak labor market[4] - The Federal Reserve officials expressed hawkish views ahead of Chairman Powell's speech at Jackson Hole, raising concerns about inflation[4] Commodity and Currency Movements - International oil prices fluctuated, with WTI crude oil rising 0.5% to $63.52 per barrel and Brent crude oil up 1.2% to $67.67 per barrel[26] - The U.S. dollar index increased by 0.4%, while gold prices saw a slight decline[26] Company Performance - Futu Holdings reported a 74.9% year-on-year increase in revenue for H1 2025, reaching HKD 10.006 billion, with a Non-GAAP net profit growth of 101.7%[7] - AAC Technologies' net profit for H1 2025 grew by 63% to CNY 876 million, exceeding market expectations[12] Stock Market Trends - The Hang Seng Index fell 0.24%, with major tech stocks declining, while healthcare stocks showed strength with a 2.2% increase[9] - In Latin America, the S&P Mexico IPC Index rose 0.76%, driven by gains in the healthcare sector[7] Bond Market Insights - U.S. Treasury yields fluctuated, with the 2-year yield rising 4.4 basis points to 3.79% following strong PMI data[29] - Standard & Poor's maintained the U.S. sovereign credit rating at "AA+" with a stable outlook, citing concerns over rising debt levels[29]