Online brokerage firm Futu Holdings Q2 revenue rises 69.7%

Overview

• Futu Q2 revenue rises 69.7% yr/yr to HK$5.31 bln

• Net income increases 112.7% yr/yr to HK$2.57 bln

• Total trading volume up 121.2% yr/yr to HK$3.59 trillion

Outlook

• Company did not provide specific guidance for future quarters or full year

Result Drivers

• INTERNATIONAL EXPANSION - Over half of total funded accounts now from clients outside of Hong Kong, driven by growth in U.S., Malaysia, and Japan

• MARKET VOLATILITY - Trade policy-induced volatility and high-profile IPOs boosted retail sentiment in Hong Kong, contributing to new funded accounts

• TRADING VOLUME - Total trading volume increased by 121.2% yr/yr, driven by U.S. stock trading, particularly in EV and crypto sectors

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Futu Holdings Ltd is $159.94, about 5.4% below its August 19 closing price of $168.52

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX3W6fVl