Hong Kong-based online brokerage Futu posts jump in Q3 profit; sets $800 mln share buyback

Overview

• Futu Q3 revenue up 86.3% yr/yr, net income rises 143.9%

• Company announces US$800 mln share repurchase program

• Total client assets increased 78.9% yr/yr to HK$1.24 trillion

Outlook

• Company did not provide specific future financial guidance

Result Drivers

• FUNDED ACCOUNT GROWTH - Futu added 254,000 net new funded accounts, driven by strong client acquisition in Hong Kong and Malaysia

• TRADING VOLUME INCREASE - Total trading volume surged 104.8% yr/yr, with significant activity in Hong Kong stocks and crypto trading

• PRODUCT LOCALIZATION - Enhanced product offerings in Malaysia and Singapore, including AI tools and derivatives, supported growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Futu Holdings Ltd is $220.00, about 23.4% above its November 17 closing price of $168.57

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX6czPqF

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)