On March 3, CICC published the March report of the Capital Market Industry. In the report, CICC suggested that the bargain-hunting layout consolidate its competitiveness and is expected to accompany the upstream of beta.$Futu Holdings Ltd (FUTU.US)$Give a target price of $98 to maintain an outperforming industry rating.
Reasons
With the recent overhaul of cross-border Internet securities firms, the company's valuation may have reflected the market's pessimistic expectations (currently trading at 14x 2023eP/E).
The company has established overall advantages in license qualification, user experience, brand trust, technology reserve, capital strength and so on.
In the short term, the company's own alpha is expected to be further enlarged under the superposition of the market beta.
In the medium and long term, the background of raising interest rates in overseas markets provides a guarantee for the rapid growth of interest income, while the international layout, the promotion of wealth management and the optimization of operating efficiency represented by self-liquidation provide momentum for long-term growth.
Risk
Market volatility; policy and regulatory uncertainty; the process of industry transformation and development is lower than expected.
