1Q21 preview: Expecting a strong quarter with accelerated overseas expansion
Expecting strong quarterly results given new paying users of 273k in 1Q21.
Faster pace of overseas expansion in SG despite normalizing market activities.
Reiterate BUY with revised TP of US$178.00 (55x target P/E).
We expect Futu to report another record-high net profit in 1Q21, along with strong new paying user adds of 273k (vs. 99k in 4Q20).
Futu noted better-than-expected user growth for its Singapore expansion, although we are starting to see normalized market activity as evidenced by lower stock ADT in the Hong Kong market and reduced daily client trades for competitors such as Interactive Brokers (IBKR, Not Covered).
We remain positive on Futu as an InvestmentTech platform with a growing addressable market through overseas expansion and product cross-selling.
We reiterate our BUY rating amid a recent share price pullback.
Risks include: 1) Market downturn with reduced IPO pipeline; 2) intensifying competition.
華興資本在研報中指出:
華興資本預計,富途Q1凈利潤將再創新高,同時新增入金用戶將達到27.3萬(相比之下,去年Q4為9.9萬)。同時註意到,盡管香港整體市場交易活躍度下滑、競品盈透的日均交易下滑,但富途新加坡市場擴張超預期,華興資本仍然看好富途作為一個全方位投資平台,通過海外擴張和產品協同效應,潛在市場規模不斷抬升,重申買入評級。
風險提示:市場大幅調整,IPO熱度下降;競爭加劇等。