Earnings beat expectations; no negative impact from regulations
Highlights from the Quarterly Results:
FUTU beat revenue and profit expectations once again. Even at current price of $40, FUTU is only trading at a low PE Ratio of just 12.5, allowing for much upside in the stock price.
FUTU beat revenue and profit expectations once again. Even at current price of $40, FUTU is only trading at a low PE Ratio of just 12.5, allowing for much upside in the stock price.
Investor Conference Call Highlights:
1) CSRC Regulatory Impact: Management has shared that since the announcement of its App removal, they have not witnessed any meaningful outflow or churn rate. Existing China investors remain very calm and loyal to the App.
1) CSRC Regulatory Impact: Management has shared that since the announcement of its App removal, they have not witnessed any meaningful outflow or churn rate. Existing China investors remain very calm and loyal to the App.
Also, the current CSRC Regulations allows FUTU to onboard new Chinese clients and have their assets transferred in, as long as they already have an account with another offshore broker. This means that with increased competitiveness, FUTU can even be welcoming new Chinese clients!
2) Entry into Malaysia as the next overseas market: Malaysia was chosen because of its 33 million population, of which about 20% are Chinese. Investors are young, and industry is still mainly dominated by banks and financial institutions which are charging very high commission rates. Online brokers like FUTU are still relatively new to the scene and hence, offers great potential for growth in the country.
3) Other overseas markets: US client acquisition slowed as they are optimizing their localisation strategies. However, Australia’s client acquisition grew due to their increased brand awareness in the country after operating for more than a year there.
4) FUTU also has plans to expand into other overseas markets as shared in the previous Quarter’s conference call. We await more updates on the Japan market, as well as possibly another new market in Southeast Asia.
5) FUTU has plans to migrate Singapore’s US stock trading clearing from external partners (current) to its own clearing house, which will further improve gross and earnings margins.
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Kenny Tey : Thanks for information !
Last year 2022 Q1 Revenue $209M was reported on 6Jun2022
Human trade in $39.66-$43.70 on that financial results day.
This year 2023 Q1 Revenue $318M reported on 24May2023
Human still trade in around $39 ..
109Million USD more earning but the share price today is still trade at same level $38-$40
Where is the value of 109M extra revenue ?
How long it take to be reflected in the share price ?
秋风阵阵 Kenny Tey: How much did you buy it for?
ATS A trade sniper : more buying
Kenny Tey 秋风阵阵: Average price $48 ...About 9216 shares
..No fear at all..Unless you are urgently expecting the price to go up in 1 -2 months.. It already expanded to Malaysia and next will be Japan. Revenue will Boom after 1-2 years. 
Currently float lost about $80-90K..
Anyway Short term player highly depending on luck because we can’t predict when big shorter will come out n go home.
金银镇財 : Come on, Taikaku, let's dance a square dance and appeal