On Aug 24, Daiwa maintains Buy rating on Futu, as Daiwa summarizes that Futu saw another quarter of an earnings beat as a result of higher-than expected interest income, client AUM inflows and better cost control. The non-GAAP net profit was HKD1.193b, which was 20% higher than Daiwa's expectation.
Daiwa pointed out the following highlights:
Futu acquired 58k (up 41% QoQ) new paying clients in 2Q23, with the 1H23 total now tracking 66% of the full-year target of 150k.
Aggregate AUM increased 7.5% YoY at HKD466bn despite the negative MTM impact from market movements.
Higher interest income and effective cost control drove 2Q23 earnings beat. Interest income increased 127% YoY or 9% QoQ.
Japan business to be launched in 4Q23. Management sees benign competitive landscape and Daiwa expects strong monetisation potential in Japan.