China Renaissance Capital Investment released a research report on April 20 to maintain the "buy" rating of Futu Holdings and maintain the target price of US $200.

China Renaissance Capital Investment pointed out in the research:

• Additional financing contributes to margin financing business, overseas expansion, applications for new licenses and potential investment and acquisition opportunities. After this financing, Futu's margin loans to equity leverage will remain at 2-2.5 times over the next 18-24 months, and the company's demand for external financing is expected to be limited during this period.

• Futu officially launched Futu moomoo in Singapore on March 8 this year, speeding up overseas market expansion, and the company is confident that Hong Kong's success will be replicated to Singapore to gain a leading retail market share. According to SensorTower, as of April 20, Moomoo ranked third in the number of downloads in Singapore's iOS store, with a five-star rating of 82%. Outside the Singapore market, Huaxing expects Futu's products will further enter the US retail market.

China Renaissance Capital Investment maintains a buy rating and a target price of $200, based on an average of 60 times 2021-22 non-gaap net profit.

Risk factors:

1) the market is in a volatile period and the number of IPO is decreasing;

2) intensifying competition.