- Futu Holdings reported a trading volume of HK$1.3 trillion in 1Q 2024, beating the estimate of HK$1.18 trillion by 8.3% year-over-year.
- Earnings per American depositary receipts were HK$7.46, down from HK$8.44 year-over-year.
- Daily average revenue trades increased by 7%.
- Total revenue for the quarter was HK$2.59 billion, exceeding the estimate of HK$2.55 billion with a 3.7% year-over-year growth.
- New paying clients surged by 330.8% year-over-year to 177,000, the third highest quarterly growth in the company’s history.
- Futu raised its full-year new paying client guidance to 400,000, reflecting strong momentum.
- While Hong Kong and Singapore saw strong double-digit sequential growth in new paying clients, their overall contribution to client growth decreased to around one-third.
- Other markets experienced triple-digit sequential growth in new paying clients.
- In Malaysia, Futu attracted over 100,000 registered clients within six weeks of launching its brokerage business, becoming the most downloaded financial app in the country.
- Futu is recognized for its industry-leading product experience and high brand recognition, particularly in Singapore.
- Analysts’ recommendations include 18 buys, 2 holds, and 0 sells.
Futu Holdings Ltd on Smartkarma
Analyst coverage on Smartkarma for Futu Holdings Ltd by Eric Wen reveals a bearish sentiment, as outlined in his recent report titled “[Futu Holdings (FUTU US, SELL, TP US$46) Rating Change]: Run Out of Growth Momentum, Downgrade to SELL.” Wen highlights concerns about stagnation in 2024 for FUTU, citing limited growth potential in Japan and regulatory hurdles impeding further expansion. The report indicates a shift to a SELL rating due to sluggish progress and challenges in monetization, suggesting a looming stagnant phase for the company.
A look at Futu Holdings Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Futu Holdings Ltd has an optimistic long-term outlook. With strong scores in Growth and Momentum, the company is positioned for future expansion and market performance. In particular, Futu Holdings excels in its Growth aspect, indicating a promising trajectory for increasing market share and profitability over time. Additionally, its high Resilience score suggests the company is well-prepared to navigate challenges and sustain its operations effectively. These positive indicators bode well for the company’s potential to thrive in the market.
Futu Holdings Ltd, a holding company specializing in online brokerage services, primarily caters to individual investors interested in trading listed stocks. With a presence in the United States, China, and Hong Kong, the company offers a platform that enables customers to engage in stock trading activities. The company’s strategic focus on Growth and Momentum, as reflected in its Smart Scores, highlights its commitment to expanding its market presence and capitalizing on emerging opportunities in the investment sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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