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Jefferies Maintained Buy and Raised TP to US$49.5 on Futu

Moomoo News ·  Aug 31, 2022 08:33

On August 31, Jefferies released a research report on $Futu Holdings Ltd (FUTU.US)$ with a BUY rating.

Jefferies Highlighted in the report:

  • Total revenue grew 10.8% YoY to HK$1,746.7m, 13.9% ahead of consensus.

  • Total trading volume increased 2.4% YoY to HK$1.3tn.

  • Non-GAAP net profit grew 25.1% YoY to HK$688.5m, 17.5% above market expectations; Non-GAAP net Margin improved by 4.5pp YoY to 39.4%

  • FUTU added nearly 61K new paying clients with total paying clients reaching about 1.39m. 90% of its newly added paying clients came from Hong Kong and other overseas markets. Quarterly client retention rate remained above 98% despite sharp market correction. 

Jefferies maintained a Buy rating and raised the price target from prior US$40 to US$49.5(+16%), based on 2023E EPS of HK$25.9 and 15x P/E considering its fast penetration in overseas markets.

Risk Factors:

  1. Macro-headwinds

  2. Market competition

  3. Lower commission fee rate and interest rate

  4. Regulatory risk

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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