Market Overview - The U.S. stock market is experiencing a significant downturn, with a pervasive "risk-off" sentiment driven by concerns over high valuations in AI-related stocks and diminishing expectations for a Federal Reserve interest rate cut [1][5] - All three major U.S. indexes are sharply lower for a second consecutive session, with technology shares particularly affected [1] Major Index Performance - The Dow Jones Industrial Average (DJIA) has dropped approximately 450 points, or 0.9%, reaching a one-month low after a 1.2% decline on Monday [2] - The S&P 500 (SPX) is down 0.6% at midday, falling below its 50-day moving average for the first time in 139 sessions [3] - The Nasdaq Composite (IXIC) is down 1% midday, extending its losses for November and also breaking below its 50-day moving average [4] Investor Sentiment - The prevailing market sentiment is one of caution and uncertainty, with investors pulling back on riskier assets, particularly in high-growth tech and AI sectors [5][9] - The CBOE Volatility Index (VIX) surged 12.86% on Monday, reflecting heightened investor anxiety [4] Upcoming Market Events - Nvidia (NVDA) is set to report quarterly earnings, viewed as a crucial "litmus test" for the AI-driven rally [7] - Retail earnings reports from companies like TJX, Lowe's, Target, Walmart, and Gap are expected to provide insights into consumer spending [7] - The release of the Federal Open Market Committee (FOMC) meeting minutes will be closely scrutinized for clues regarding future interest rate decisions [7] Company-Specific Developments - Nvidia shares are down 2.3% today, adding to a nearly 2% drop yesterday, bringing its total loss for the month to 10.8% [6] - Home Depot (HD) shares fell 3.5% after reporting disappointing third-quarter profit and cutting its full-year outlook [12] - Alphabet (GOOGL) shares rose about 1% after announcing its latest AI model, Gemini 3, following a significant purchase of shares by Berkshire Hathaway [12] - Apple (AAPL) received a boost from strong iPhone 17 sales in China, marking its best month of market share in the region in three years [12] - Baidu (BIDU) reported solid growth in its AI Cloud segment, demonstrating the transformative value of AI across its portfolio [12] - Futu Holdings (FUTU) reported total revenues up 86.3% year-over-year and net income increasing by 143.9% [12]

Core Insights - Futu Holdings Ltd. reported strong financial performance in Q3 2025, with earnings per share of $3.02, exceeding estimates of $2.63, and revenue of approximately $823 million, surpassing the estimated $713 million [1][6] Financial Performance - Net income increased by 137% year-over-year to $425.7 million, showcasing the company's ability to capitalize on market opportunities [2][6] - Total trading volume rose by 104.8% year-over-year, reaching HK$3.90 trillion, indicating a robust position in the online brokerage sector [4][6] Operational Metrics - Funded accounts surged by 42.6% year-over-year, totaling over 3.1 million by the end of September 2025 [2][6] - The number of brokerage accounts increased by 30.8% year-over-year, totaling more than 5.6 million [3][6] - The user base expanded by 16.8%, bringing the total number of users to 28.2 million [3] Client Assets - Total client assets grew by 78.9% year-over-year, amounting to HK$1.24 trillion [3] - Daily average client assets in Q3 were HK$1.10 trillion, marking an 85.3% increase from the same period in the previous year [3] Valuation Metrics - The price-to-earnings (P/E) ratio is approximately 23.08, reflecting the market's valuation of the company's earnings [4] - The price-to-sales ratio stands at about 10.78, while the enterprise value to sales ratio is around 10.99 [5] - Futu maintains a low debt-to-equity ratio of 0.29 and a current ratio of about 1.18, indicating its ability to cover short-term liabilities [5]

Group 1: Stock Recommendations - Geely Automobile (175 HK) has a target price of 25.00, indicating a potential upside of 47% with a PE ratio of 9.50[5] - Luckin Coffee (LKNCY US) has a target price of 44.95, suggesting a potential upside of 12% with a PE ratio of 30.00[5] - Alibaba (BABA US) has a target price of 209.40, indicating a potential upside of 33% with a PE ratio of 22.50[5] Group 2: Market Performance - The basket of 24 long positions had an average return of -3.4%, while the MSCI China Index returned -0.8%[9] - Among the 24 stocks, only 5 outperformed the benchmark[9] Group 3: Analyst Ratings - New additions include companies like Bosideng (3998 HK) and Futu Holdings (FUTU US), both rated as "Buy"[6] - The report indicates a focus on sectors such as technology, insurance, and consumer goods, with multiple stocks receiving "Buy" ratings[5][6]

Financial Performance - Total revenues rose by 86.3% year-over-year to HK$6,402.9 million (US$822.9 million) in Q3 2025[8] - Net income surged by 143.9% year-over-year to HK$3,217.2 million (US$413.5 million) in Q3 2025[17] - Total revenues for the three months ended September 30, 2025, reached HK$6,402,900, representing a significant increase from HK$3,436,132 in the same period of 2024, marking an 86% year-over-year growth[40] - Net income for the nine months ended September 30, 2025, was HK$7,932,464, compared to HK$3,563,597 for the same period in 2024, reflecting a 123% increase[40] - Brokerage commission and handling charge income for the three months ended September 30, 2025, was HK$2,913,819, up from HK$1,528,910 in the same period of 2024, indicating an increase of 90%[40] - Interest income for the three months ended September 30, 2025, amounted to HK$3,045,019, compared to HK$1,698,761 in the same period of 2024, representing an increase of 79%[40] - The company reported a gross profit of HK$5,609,222 for the three months ended September 30, 2025, compared to HK$2,811,252 for the same period in 2024, marking a 100% increase[40] - For the three months ended September 30, 2025, the net income attributable to ordinary shareholders increased to HK$3,217,200, representing a 143% increase from HK$1,319,166 in the same period of 2024[43] - Adjusted net income for the nine months ended September 30, 2025, reached HK$8,189,212, a 130% increase compared to HK$3,563,597 for the same period in 2024[47] - The basic net income per share for the nine months ended September 30, 2025, was HK$7.13, up from HK$3.24 in the same period of 2024, reflecting a 120% increase[43] - The diluted net income per ADS for the three months ended September 30, 2025, was US$2.93, compared to US$0.37 for the same period in 2024, marking a significant increase[43] - The basic net income per share for the three months ended September 30, 2025, was HK$2.90, compared to HK$1.20 for the same period in 2024, reflecting a 142% increase[43] - The total comprehensive income attributable to ordinary shareholders for the three months ended September 30, 2025, was HK$3,068,339, compared to HK$1,441,210 for the same period in 2024, showing substantial growth[43] - Total comprehensive income for the nine months ended September 30, 2025, was HK$8,166,177, compared to HK$3,586,477 for the same period in 2024, indicating a strong growth trajectory[43] User and Account Growth - Total funded accounts increased by 42.6% year-over-year to 3,131,450 as of September 30, 2025[6] - The number of users increased by 16.8% year-over-year to 28.2 million as of September 30, 2025[6] Trading and Asset Management - Daily average client assets reached HK$1.10 trillion, an increase of 85.3% from the same period in 2024[6] - Total trading volume in Q3 2025 increased by 104.8% year-over-year to HK$3.90 trillion[6] - Wealth management asset balance expanded to HK$175.6 billion, up 7.6% quarter-over-quarter[7] - Margin financing and securities lending balance rose by 55.2% year-over-year to HK$63.1 billion as of September 30, 2025[6] Expenses and Liabilities - Operating expenses for the three months ended September 30, 2025, totaled HK$1,704,840, compared to HK$1,079,945 in the same period of 2024, representing a 58% increase[40] - Total current assets as of September 30, 2025, were HK$238,858,321, up from HK$155,885,885 as of December 31, 2024, showing a growth of 53%[34] - Total liabilities as of September 30, 2025, were HK$206,583,547, compared to HK$130,752,472 as of December 31, 2024, reflecting a 58% increase[38] - Total shareholders' equity as of September 30, 2025, was HK$36,795,723, up from HK$28,011,241 as of December 31, 2024, indicating a growth of 31%[38] Research and Development - Research and development expenses increased by 49.3% year-over-year to HK$574.2 million, driven by investments in crypto and AI capabilities[14] Shareholder Actions - The company plans to repurchase up to US$800 million worth of its ADSs over a 24-month period starting after the current program expires[20] Other Financial Adjustments - Share-based compensation expenses for the nine months ended September 30, 2025, totaled HK$256,748, up from HK$252,040 in the same period of 2024[47] - The company reported a foreign currency translation adjustment loss of HK$158,939 for the three months ended September 30, 2025[43]

Financial Data and Key Metrics Changes - The company concluded Q3 2025 with 3.13 million funded accounts, a 43% year-over-year and 9% quarter-over-quarter increase [3] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter, driven by robust net asset inflow and appreciation in client stock holdings [10] - Total revenue was HKD 6.4 billion, an 86% increase from HKD 3.4 billion in Q3 2024 [21] - Net income increased by 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with a net income margin of 50.1% [26] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter, primarily driven by higher trading volume [21] - Interest income was HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [22] - Crypto trading volume surged 161% sequentially, with Ethereum trading volume quadrupling during the quarter [14] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts for four consecutive quarters, with the highest quarterly net client acquisition since Q1 2021 [5] - In Singapore, new funded accounts showed steady sequential growth, leading peers in daily active users [7] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [9] Company Strategy and Development Direction - The company aims to enhance its brand recognition and product experience across all markets, focusing on sophisticated active traders in the U.S. [52] - The integration of Airstar Bank is expected to improve client stickiness and enhance the one-stop financial services platform [60] - Continued investment in Crypto and AI capabilities is planned to optimize client experience and operational efficiency [47] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition costs and trends, indicating robust momentum in net asset inflows despite market fluctuations [31] - The company anticipates continued growth in Crypto trading, driven by broadening token offerings and potential new business lines like derivatives [40] - Management highlighted the importance of regulatory approvals for future product launches in the Crypto space [64] Other Important Information - The company hosted its annual flagship offline investor event, Moof Fest, attracting over 28,000 investors [7] - The average customer acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [31] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of client asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [31] Question: Interest income drivers and Crypto business contribution - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from hard-to-borrow stocks [36] - Crypto trading volume and AUM saw triple-digit growth across markets, with new functions and token offerings contributing to this expansion [38] Question: R&D and G&A cost increases - R&D and G&A expenses increased due to investments in Crypto and AI capabilities, as well as preparations for new market entries [47] Question: Client profile and regional mix of AUM - Hong Kong and Malaysia contributed around 50% of new funded accounts, with a notable increase in high net worth clients [51] Question: Airstar Bank's strategic role - Airstar Bank's integration is expected to enhance customer experience and product offerings, with plans for continued investment in the bank [60]

Financial Data and Key Metrics Changes - The company concluded Q3 2025 with 3.13 million funded accounts, a 43% year-over-year and 9% quarter-over-quarter increase [3][5] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter, driven by robust net asset inflow and appreciation in client stock holdings [10] - Total revenue was HKD 6.4 billion, an 86% increase from HKD 3.4 billion in Q3 2024 [21] - Net income increased by 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with a net income margin of 50.1% [26] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter, primarily driven by higher trading volume [21] - Interest income was HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest income from securities borrowing and margin financing [22] - Crypto trading volume surged 161% sequentially, with Ethereum trading volume quadrupling during the quarter [14] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts for four consecutive quarters, with the highest quarterly net client acquisition since Q1 2021 [5][6] - In Singapore, new funded accounts posted steady sequential growth, leading peers in daily active users [7] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased activity in derivatives trading [9] Company Strategy and Development Direction - The company aims to enhance brand recognition and product experience across all markets, focusing on sophisticated active traders in the U.S. [52] - The integration of Airstar Bank is expected to improve client stickiness and wallet share, positioning the company as a one-stop financial services platform [60] - Continued investment in crypto and AI capabilities is planned to optimize product offerings and enhance operational efficiency [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition costs and momentum, despite recent market pullbacks [32] - The company anticipates continued strong performance in client asset inflows and trading activity, driven by favorable market dynamics [31][39] - Management highlighted the potential for significant growth in the crypto business, contingent on regulatory approvals and product offerings [40] Other Important Information - The company hosted its annual flagship offline investor event, Moof Fest, attracting over 28,000 investors [7] - The average customer acquisition cost in Q3 was around HKD 2,300, slightly up quarter-over-quarter but still within the full-year target range [31] Q&A Session Summary Question: Breakdown of client assets performance and customer acquisition cost trends - Management indicated that one-third of asset growth came from net client inflows, with the remaining two-thirds from market fluctuations. The customer acquisition cost was slightly higher than Q2 but remains within the full-year target [29][31] Question: Drivers behind strong interest income growth - Interest income growth was attributed to client idle cash, margin financing, and securities borrowing, with strong momentum observed in the market [34][36] Question: Insights on crypto business contribution and future growth drivers - The crypto business saw broad-based growth across markets, with new functions and token offerings driving increased trading volume and AUM [38][40] Question: Plans for investment in R&D and G&A costs - Management noted that R&D and G&A expenses increased due to investments in crypto and AI capabilities, as well as preparations for new market entries [46][47] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed a continued upward trajectory in average client assets, with robust net asset inflows from existing clients [66][68] Question: Regional mix of client AUM and net inflow - Hong Kong's contribution to net asset inflow slightly decreased, with strong inflows from Singapore and Malaysia, and an increase in high net worth clients [56][58]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was HKD 6.4 billion, an increase of 86% from HKD 3.4 billion in Q3 2024 [13] - Net income rose by 143% year-over-year to HKD 3.2 billion, with a net income margin expanding to 50.1% from 38.4% in the same quarter last year [17] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter [7] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter [13] - Interest income increased to HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [14] - Total trading volume rose 105% year-over-year to HKD 3.9 trillion, with crypto trading volume surging 161% sequentially [8][9] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts, with the highest quarterly net client addition since Q1 2021 [4] - Singapore led peers in daily active users (DAUs) and continued to see steady growth in new funded accounts [5] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [6] Company Strategy and Development Direction - The company aims to enhance its product offerings and client experience, particularly in crypto and AI capabilities [16][34] - Futu is focusing on integrating banking services through Airstar Bank to improve client stickiness and expand service offerings [46] - The company is optimistic about the growth potential in the crypto market, with plans to broaden token offerings and explore derivatives [28][50] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition momentum and cost trends, despite a slight increase in customer acquisition costs [20][21] - The company noted that market fluctuations have impacted asset inflows, but robust client acquisition momentum remains [20] - Management highlighted the importance of regulatory developments in shaping future product offerings, particularly in the crypto space [49] Other Important Information - The company hosted its annual investor events, attracting over 28,000 investors, enhancing brand recognition in the region [5] - The average client acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [20] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [20] Question: Drivers behind strong interest income growth - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from the securities borrowing business [23][25] Question: Insights on crypto business contribution and future growth - Crypto trading volume saw triple-digit growth across markets, with new features and token offerings expected to drive further expansion [26][28] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed an upward trajectory in average client assets, with trading behavior influenced by market performance [54] Question: Gross margin trends in international markets - Operating margins in Singapore have consistently topped 60%, indicating strong operating leverage as the company scales [56]

Market Overview - US stock index futures are all down ahead of the market opening, with Dow futures down 0.68%, S&P 500 futures down 0.57%, and Nasdaq futures down 0.72% [1] - European indices also show declines, with Germany's DAX down 1.40%, UK's FTSE 100 down 1.37%, France's CAC40 down 1.42%, and the Euro Stoxx 50 down 1.46% [2][3] - WTI crude oil is up 0.02% at $59.87 per barrel, while Brent crude oil is down 0.05% at $64.17 per barrel [4] Economic and Monetary Policy Insights - Analysts warn of a potential market correction as the S&P 500 index closes below its 50-day moving average for the first time in 139 trading days, breaking a record for the second-longest period above this trend line in the century [4] - The Nasdaq also falls below its 50-day moving average, ending the longest streak since October 1995, with more stocks hitting 52-week lows than highs, indicating weak market internals [4] - Federal Reserve Vice Chair Jefferson emphasizes a cautious approach to further rate cuts, citing a softening job market and recent easing inflation risks [5] - UBS predicts a strong likelihood of a rate cut in December, despite internal disagreements within the Federal Reserve [6] Oil Market Forecast - Goldman Sachs warns of a continued decline in oil prices until 2026 due to a supply surplus of approximately 2 million barrels per day, forecasting Brent crude at $56 per barrel and WTI at $52 per barrel by 2026 [7][8] Company-Specific Developments - Apple (AAPL.US) sees a 37% increase in iPhone 17 sales in China, regaining a 20% market share, indicating strong consumer response to new models [9] - Google (GOOGL.US) CEO warns of irrational factors in the current AI market, suggesting that no company, including Google, is immune to potential market corrections [9] - Arm (ARM.US) partners with Nvidia (NVDA.US) to integrate NVLink technology into its Neoverse platform, enhancing collaboration in AI data center chips [9] - Home Depot (HD.US) reports Q3 sales of $41.35 billion, with same-store sales growth of only 0.2%, below expectations [10] - Axalta (AXTA.US) announces a merger with AkzoNobel to create a $25 billion global coatings company, expected to complete by late 2026 or early 2027 [10] - Baidu (BIDU.US) reports Q3 revenue of 31.2 billion yuan, with AI-related business revenue growing over 50% [11] - Futu Holdings (FUTU.US) shows a significant increase in Q3 revenue by 86.3% year-on-year, with net profit up 136.9% [12] - Weibo (WB.US) reports a net profit of $454 million for Q3, a 55.43% increase year-on-year, despite a slight decline in total revenue [13]

Group 1 - Futu Holdings reported third-quarter revenue of HKD 6.403 billion (approximately USD 823 million), representing a year-on-year growth of 86.3% [1] - Non-GAAP net profit for the third quarter was HKD 3.312 billion (approximately USD 426 million), showing a year-on-year increase of 136.9% [1] - The breakdown of revenue includes trading commissions and fees at HKD 2.914 billion (approximately USD 374 million), up 90.6% year-on-year; interest income at HKD 3.045 billion (approximately USD 391 million), up 79.2%; and other income at HKD 444 million (approximately USD 57.07 million), up 113.0% [1] Group 2 - As of the end of the third quarter, Futu's registered user base reached 28.16 million, with account numbers at 5.61 million, reflecting year-on-year growth of 17% and 31% respectively [1] - The number of asset-holding clients increased by 43% year-on-year to 3.13 million, and total client assets surpassed HKD 1.24 trillion (approximately USD 159.5 billion), a year-on-year increase of 79% [1] - Total trading volume reached a record high of HKD 39 trillion, representing a year-on-year growth of 105% [1] Group 3 - Futu's founder and CEO, Li Hua, emphasized the company's commitment to listening to user needs and enhancing service capabilities, which contributed to the addition of over 250,000 asset-holding clients in the third quarter [2] - The company aims to strengthen its international presence and diversify its financial ecosystem while continuously optimizing the trading experience for users [2] - Following the earnings report, Futu's stock rose over 2% in pre-market trading [2]

Core Insights - Futu Holdings Ltd. reported Q3 2025 earnings with revenues of US$822.9 million, an increase of 86.3% year-over-year, and non-GAAP adjusted net income of US$425.7 million, up 136.9% YoY [1][2] User Growth and Market Expansion - As of September 30, 2025, the company had 28.16 million registered users, 5.61 million brokerage accounts, and 3.13 million funded accounts, with total client assets reaching US$159.5 billion, a 27% increase quarter-over-quarter and 79% year-over-year [2] - The company experienced significant growth in funded accounts in Malaysia, Japan, and Canada, while Australia and New Zealand saw strong user base expansion, with Moomoo becoming the most downloaded trading app in Australia [3] Trading Volume and Market Performance - Trading volume across all asset classes surged to US$501.3 billion, a 105% increase YoY, with US equities and Hong Kong equities recording volumes of US$334 billion and US$153 billion, up 70% and 243% YoY, respectively [4] - Cryptocurrency assets increased by 90% in size compared to the previous quarter, with trading volume and number of traders growing by 161% and 87% QoQ [4] Innovation and Product Development - The company enhanced its platforms with advanced technologies, becoming the first brokerage to integrate AI capabilities in Canada, Australia, and Malaysia, achieving a 90% satisfaction rate from users [5] - New features included US stock over-the-counter trading for Malaysian investors and seamless reinvestment options for Japanese investors, alongside a subscription service for US IPOs [6] Product Diversification - Moomoo expanded its product offerings, providing access to Bursa derivatives in Malaysia, launching a flexible credit income fund in Singapore, and adding Solana trading in Hong Kong [7] Community Engagement - The company integrated digital platforms with offline experiences, highlighted by the MooFest event attracting 28,000 investors, reinforcing its role in financial education [8][9] Industry Recognition - Moomoo received multiple awards, including "WealthTech of the Year" and "Best Brokerage for Beginner Investors," and achieved high user ratings across various markets [10][11]