FUTU(US:FUTU)2025-08-21 04:44Summary of Futu Holdings (FUTU) Earnings Review Company Overview - Company: Futu Holdings (FUTU) - Market Capitalization: $23.5 billion - Current Price: $168.52 - 12-Month Price Target: $137.94 - Downside Potential: 18.1% [1][6][17] Key Financial Metrics - Revenue Estimates: - 2025E: HK$ 19,778.8 million (up from HK$ 17,689.6 million) - 2026E: HK$ 18,744.6 million (up from HK$ 17,792.8 million) - 2027E: HK$ 19,276.0 million [7][18] - Net Income Estimates: - 2025E: HK$ 9,097.9 million - 2026E: HK$ 7,879.4 million - 2027E: HK$ 7,981.3 million [7][18] - Earnings Per Share (EPS): - 2025E: HK$ 65.33 - 2026E: HK$ 56.58 [7][18] Growth and Performance Insights - Client AUM Growth: - Revised estimates for 2025E/26E client AUM growth of +5%/+6%, indicating year-over-year growth of 37%/12% [2] - Operating Expenses: - Operating expenses for 2025E/26E revised down by -3% on average, reflecting strong performance in Q2 [3] - New Initiatives: - Launch of virtual asset trading in the US, HK, and SG, with a total virtual asset balance of HK$ 4 billion and peak daily trading size of US$ 40 million in July [4] - Significant improvement in Japan market penetration with a 50% quarter-over-quarter increase in trading volume in Q2 [4] Market and Valuation Considerations - Valuation Multiples: - P/E ratio for 2025E: 20.1x - P/B ratio for 2025E: 4.9x [12][19] - Risks: - Upside risks include better-than-expected growth in paying clients and AUM, while downside risks involve weaker-than-expected growth in these areas [20][21] Conclusion - The company maintains a Neutral rating due to rich valuation despite positive growth indicators and strategic initiatives. The price target has been adjusted upward by 10% from the previous target of US$ 124.89 to US$ 137.94 [1][17][20]