Investment suggestion
It closed on December 2nd.$Futu Holdings Ltd (FUTU.US)$The share price has nearly doubled since the end of October, and we reiterate the view of the company's outperformance rating and the first bid of US stocks: the company has once again achieved better-than-expected performance and demonstrated strong endogenous growth resilience in the volatile market environment in the third quarter. short-term market margin improvement will usher in a Davis double rise in valuation and earnings As the leading Internet securities firm in Hong Kong and the United States, its own alpha will be magnified under the superposition of the market beta, which is worth holding for a long time.
Reasons
Market improvement ushered in the valuation and performance of Davis double rise. In the near future, the adverse factors in the / external market have eased, and it is expected that the self-valuation of Fortune, as the related target, will be repaired. At the same time, the rebound of China General and Hang Seng Technology will be transmitted to the improvement of the company's operating performance, with more obvious profitability and valuation flexibility.
Considering the continued net investment of customers and the rebound in the market, which promotes the growth of customers' assets, CICC estimates that the company's profit in 2023 is expected to reach HK $34-6.4 billion, a year-on-year increase of + 15% and 116%.
The company's international layout is accelerated, and it continues to obtain high quality new customers, high activity and high stickiness.
The industry's leading competitive advantage is consolidated; overseas expansion and product ecology are increasingly perfect to drive long-term growth.
CICC raised its target price for Fortune by 35% to $98, corresponding to 28x 2023e Pmax E and 48% upside space, and reiterated its industry rating of outperforming.
Risk
Regulatory policy uncertainty; market volatility risk; competition exceeding expectations; international expansion is not as expected.