Performance Review: 3Q22 performance exceeds Market expectations
China International Capital Corporation released his research report on November 22nd.$Futu Holdings Ltd (FUTU.US)$3Q22's performance was 14% better than we expected and 21% better than market expectations, mainly due to the increase in customer capital interest income, the higher-than-expected comprehensive commission rate, the higher-than-expected industry rating, and raised the target price to US $72.60.
Trend of development
The international layout of 3Q accelerates and the wealth management business performs brightly.
The higher-than-expected net income of transaction commission and interest and the strengthening of operating efficiency led to steady profit growth.
Market improvement may usher in Davis' double rise in valuation and performance; international expansion and product ecology are increasingly improving to drive long-term growth.
Profit forecast and valuation
Considering that the transaction commission and interest net income slightly exceeded expectations, we increased our profit by 7% in 2022 / 23 to HK $29.5 / 3.94 billion. The company is currently trading on 20x/15x 22max 23e Phammer E; raises its target price by 9 per cent to $72.60, corresponding to 21x 23e Pamp E and 43 per cent upside; and maintains an outperforming industry rating.
Risk
Regulatory policy uncertainty; market volatility risk; competition exceeding expectations; international expansion is not as expected.