On August 24th, Jefferies released a research report stating that it maintains a "buy" rating on Futu and raised the target price from $59 to $64.8, which represents a 33% upside from the closing price on August 23rd.
Jefferies maintained its Buy rating on FUTU based on the following:
2Q23 total revenue grew 42.3% YoY to HK$2,484.9m, 13.5% and 8.6% ahead of consensus and Jefferies' estimate;
In 2Q23, Futu added nearly 58K new paying clients (41K in 1Q23), with total paying clients reaching about 1.59 million. Quarterly paying client retention rate remained above 98% despite weak market sentiments;
Total client assets increased 7.5% YoY and remained stable QoQ at HK$466.2bn despite the negative mark-to-market impact on clients’ Hong Kong stock holdings, thanks to accelerated net asset inflow across all overseas markets;
In SG, its user base surpassed 800K, representing nearly 30% of local adults. Total client assets in SG achieved double-digit QoQ growth for the fourth consecutive quarter.
In 2Q23, Futu continued to roll out new products and features across markets: (a) it introduced bracket orders for US and HK options/futures; (b) in HK and SG, it offers full access to algorithmic orders (TWAP and VWAP) to local retail investors; (c) exclusive 24/5 US stock trading unleashed in SG and AU.
Jefferies pointed out more highlights on FUTU as the following:
China’s high net-worth individuals’ strong demand for geographically diverse investment portfolios will support Futu’s brokerage and margin financing businesses, as well as its emerging wealth management business;
Futu’s proprietary technology infrastructure as its key strength over peers, which should help save costs and improve operating efficiency;
Futu is ahead of other potential competitors by around 2-3 years in terms of financial licenses obtained, technology, and community etc.
Risks:
Macro-headwinds impacting securities market trading volume in the US, HK and SG;
Loss of market share due to competition;
Lower-than-expected commission fee rate and interest rate;
Unexpected restrictions on cross-border trading.
8月24日,杰富瑞发布研报称,维持富途“买入”评级,将目标价从59美元提高至64.8美元,较8月23号收盘价有33%上升空间。
杰富瑞维持富途买入评级,依据包括:
2023年第二季度总营收同比增长42.3%至24.849亿港元,比市场普遍预期和杰富瑞的预期分别高出13.5%和8.6%;
2023年第二季度,富途新增付费客户5.8万(2023年第一季度为4.1万),付费客户总数约159万;尽管市场疲软,但付费客户留存率在23年第二季度仍超过98%;
客户总资产按季增加7.5%至4662亿港元,尽管客户的港股市场持仓带来负面影响,但海外市场带来的净资产流入正在加速;
新加坡市场用户数超过80万,占当地成年人约30%。新加坡客户总资产连续第四个季度实现两位数的环比增长;
2023年第二季度,富途继续在各个市场推出新的产品和功能:(a)推出美国和香港市场期权/期货一篮子订单功能;(b)向香港和新加坡客户提供全面的算法指令(TWAP和VWAP);(c)向新加坡和澳洲客户提供24/5美股交易独家功能。
杰富瑞还在研报中指出:
中国高净值人群的强劲需求将支持富途的经纪和保证金融资业务,以及新兴的财富管理业务;
富途的专利技术基础建设是其相对于同行的关键优势,这将有助于其节省成本和提高运营效率;
富途在获得的金融牌照、技术和社区等方面领先其他潜在竞争对手2-3年。
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