- Futu Holdings’ trading volume in the third quarter reached HK$3.90 trillion, significantly surpassing the previous year’s figure of HK$1.90 trillion and the estimated HK$3.65 trillion.
- Total revenue for the quarter was HK$6.40 billion, an impressive increase of 86% compared to the previous year, and above the estimated HK$5.33 billion.
- Malaysia played a critical role in the company’s growth of funded accounts, with a strong potential for further expansion after seven consecutive quarters of increasing market share.
- In the U.S., the brand’s growing appeal and enhanced product experience led to high double-digit sequential growth in new funded accounts and a substantial increase in options trading activity.
- Client growth was primarily driven by mark-to-market gains along with substantial net asset inflows.
- Ethereum emerged as the most traded cryptocurrency, surpassing Bitcoin, and the launch of Solana in Hong Kong added positively to trading volume.
- The company’s current recommendation includes 24 buy ratings and 2 hold ratings, with no sell ratings.
Futu Holdings Ltd on Smartkarma
Analyst coverage of Futu Holdings Ltd on Smartkarma by Raj S, CA, CFA reveals a bullish sentiment. The report titled “FUTU: Strong Traction Expected from Crypto Regulatory Push in HK and ASEAN” highlights the company’s profitable platform with strong growth potential. It suggests that Futu Holdings’ current valuation does not fully capture the potential revenue increase from crypto activities. The report emphasizes Futu’s scaled and profitable platform, along with positive client growth and expanding yields.
Raj S, CA, CFA also mentions the real but underrated crypto optionality for Futu Holdings. The report sees the possibility of a significant transformation in revenue mix by 2026-27 with the full license, leading to margin upside. Despite trading at 20x FY2 P/E, the report suggests that the valuation may not fully consider the impact on revenues from crypto, indicating a potential undervaluation. In contrast to consensus analysis, Raj S, CA, CFA believes that the market may be underestimating Futu Holdings Ltd‘s growth potential by 10-15%.
A look at Futu Holdings Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Futu Holdings Ltd has a positive long-term outlook. With a high growth score of 5, the company is positioned for significant expansion. This is further supported by strong momentum and resilience scores of 4 each, indicating a solid ability to withstand challenges and maintain a positive market trajectory.
While Futu Holdings scores lower in terms of value and dividends, with scores of 2 and 1 respectively, the company’s robust growth prospects suggest potential for substantial returns in the future. As a holding company operating online brokerage services, Futu Holdings has a diversified presence in the US, China, and Hong Kong, catering to individual investors looking to trade listed stocks.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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