Company Overview - Futu Holdings Limited is a leading tech-driven online brokerage and wealth management platform listed on Nasdaq under the ticker FUTU [1][3] - The company offers fully digitalized financial services through its proprietary platforms, Futubull and moomoo, which include trade execution, margin financing, securities lending, and wealth management [3] Annual Report Filing - The company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission [1] - The annual report, which includes audited consolidated financial statements, is available on the company's investor relations website [1][2] Shareholder Services - Futu Holdings Limited will provide a copy of its annual report free of charge to shareholders and ADS holders upon request [2] - Requests for the annual report should be directed to the Investor Relations Department located in Shenzhen, China [2]

Financial Performance - As of December 31, 2024, the company's outstanding loans and advances amounted to HK$49.7 billion (US$6.4 billion), up from HK$32.5 billion in 2023 and HK$26.7 billion in 2022[128]. - The balance of receivables increased significantly to HK$22.8 billion (US$2.9 billion) as of December 31, 2024, compared to HK$10.1 billion in 2023 and HK$9.8 billion in 2022[130]. - In 2022, 2023, and 2024, the company generated HK$986.4 million, HK$2,482.9 million, and HK$2,840.8 million (US$365.7 million) in interest income from bank deposits, primarily from uninvested cash balances in client accounts[182]. - A significant decrease in liquidity could negatively affect the company's business and financial management, potentially leading to a loss of client confidence and brokerage accounts[179]. - A significant change in clients' cash allocations could negatively impact net interest revenues and overall financial results[182]. Credit Risk and Management - The allowance for credit losses recorded as of December 31, 2024, was HK$85.3 million (US$11.0 million)[128]. - A single borrower accounted for 95.91% of the total outstanding balance of stock-pledged loans as of December 31, 2024, indicating a high concentration of credit risk[129]. - The company faces significant risks related to credit exposures from margin financing, securities lending, IPO loans, and stock-pledged loan businesses, which could adversely affect its financial condition[128]. - The company has implemented comprehensive internal policies to manage credit risks, including margin calls and liquidation protection mechanisms[129]. Regulatory Environment - The company has not obtained necessary licenses for certain services in China, which could lead to regulatory penalties and affect business operations[155]. - The evolving regulatory environment in China poses uncertainties that may affect the company's compliance and operational capabilities[161]. - Increased regulatory scrutiny in the securities brokerage and wealth management industries may lead to new rules that could adversely affect the company's business model[165]. - Legislative changes and enforcement actions could directly affect the company's operational model and profitability[166]. - The company is subject to various regulatory requirements in the U.S., Singapore, and Australia, including compliance with the U.S. Brokerage Regulations and the Australian Securities and Investments Commission[213]. Technology and Operational Risks - The company’s proprietary technology is crucial for its operations, and any failure to maintain technological superiority could adversely impact its results[138]. - The company is exposed to risks from unexpected network interruptions and security breaches, which could materially affect its business operations[142]. - The company relies on third-party software and infrastructure, which if disrupted, could materially affect its business operations and financial condition[146]. - Significant reliance on external service providers for key market information and data, with potential disruptions impacting product delivery and operational results[149]. Employee and Labor Issues - Competition for well-qualified employees is intense, and failure to attract and retain key personnel could adversely affect the company's business[186]. - Increased labor costs and stricter labor laws are expected to impact financial results, with average wages anticipated to rise[203]. - Employee misconduct risks could lead to significant legal liabilities and reputational harm, impacting client relationships and financial condition[162]. Market and Economic Factors - The trade war between the United States and China may negatively impact the company's operations and client spending power[236]. - Changes in social, political, and economic policies in China may adversely affect the company's business and growth strategies[227]. - Fluctuations in exchange rates, particularly between Renminbi and U.S. dollars, could materially impact financial position and operating expenses[208]. - Limited hedging options in China may exacerbate currency exchange losses, affecting overall investment[210]. Corporate Governance and Shareholder Rights - The dual-class voting structure may limit the ability of Class A ordinary shares and ADS holders to influence corporate matters and could discourage change of control transactions[300]. - The company may face substantial uncertainties regarding compliance with the PRC Foreign Investment Law and its impact on corporate governance and business operations[295]. - Shareholders have limited rights under Cayman Islands law to inspect corporate records, which may hinder obtaining necessary information for shareholder actions[325]. Legal and Compliance Risks - The company faces potential claims and disputes with service providers, which could incur substantial expenses and harm its reputation[152]. - Errors in clearing functions could expose the company to regulatory fines and civil penalties, impacting business operations and financial condition[183]. - The company may face significant legal claims related to intellectual property infringement, which could disrupt operations and require substantial management resources to defend against[192]. - The company is subject to potential liabilities for user-generated content, which may adversely affect business results and operations[194]. Strategic Initiatives and Future Outlook - The company has expanded operations into the United States, Singapore, Australia, Japan, Canada, and Malaysia, with potential further international expansion[212]. - The company may evaluate strategic investments or acquisitions, which could require significant management attention and disrupt business operations[202]. - The company anticipates that net proceeds from its securities offering will be sufficient for general corporate purposes for at least the next 12 months, but may face challenges in raising additional capital[223].

Core Insights - Moomoo has entered a multiyear multimillion-dollar sponsorship partnership with the New York Mets to enhance the sports experience for fans and communities [1][2] - The partnership includes promotional initiatives such as a special fund that adds $10,000 for every Mets win, with a potential grand prize of $1 million for a moomoo investor if the team achieves 100 victories [2] - Moomoo aims to leverage its global user base of 25 million to connect baseball fans with the Mets, enhancing engagement through events and promotions [4][5] Company Overview - Moomoo is a global investment and trading platform that empowers investors with user-friendly tools and insights, designed to facilitate informed investment decisions [7] - The platform operates in multiple countries including the US, Singapore, Australia, Japan, Canada, and Malaysia, and is a subsidiary of Nasdaq-listed Futu Holdings [8] - Moomoo has received numerous accolades for its innovative approach to investing, recognized by industry leaders such as Benzinga and Fintech Breakthrough [8]

Group 1: Futu Holdings Limited (FUTU) - Futu Holdings Limited is an online brokerage and wealth management platform with a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for Futu's current year earnings increased by 10.2% over the last 60 days [1] - Futu's shares gained 22.3% over the last three months, while the S&P 500 declined by 6.2% [1] - The company has a Momentum Score of A [1] Group 2: IHS Holding Limited (IHS) - IHS Holding Limited is a communications infrastructure company with a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for IHS's current year earnings increased by 30.9% over the last 60 days [2] - IHS's shares gained 72.7% over the last three months, compared to the S&P 500's decline of 6.2% [2] - The company possesses a Momentum Score of A [2] Group 3: Infineon Technologies AG (IFNNY) - Infineon Technologies AG is a semiconductor and related solutions company with a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for Infineon's current year earnings increased by 8% over the last 60 days [3] - Infineon's shares gained 7.8% over the last three months, while the S&P 500 declined by 6.2% [3] - The company has a Momentum Score of A [3]

Group 1 - Futu Holdings Limited Sponsored ADR is part of the Business Services group, which includes 289 companies and ranks 8 in the Zacks Sector Rank [2] - The Zacks Rank for Futu Holdings is currently 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for Futu's full-year earnings has increased by 10.2%, reflecting improved analyst sentiment [4] Group 2 - Futu Holdings has achieved a year-to-date return of approximately 33%, outperforming the Business Services sector, which has returned an average of -0.5% [4] - In the Technology Services industry, which includes 151 stocks, Futu Holdings ranks 71 and has performed better than the average loss of 27.9% in the industry this year [6] - Another stock in the Business Services sector, Katapult Holdings, Inc., has a year-to-date return of 90.7% and a Zacks Rank of 2 (Buy) [5][6]

Group 1 - IHS Holding Limited (IHS) has seen a 30.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Heritage Financial Corporation (HFWA) has experienced a 5.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Infineon Technologies AG (IFNNY) has reported an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Futu Holdings Limited (FUTU) has seen a 10.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Valley National Bancorp (VLY) has experienced a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

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Investment Rating - The report assigns a "Buy" rating for the company, indicating a strong potential for performance relative to the market index [7]. Core Insights - The company achieved a total revenue of HKD 135.9 billion in 2024, representing a year-on-year growth of 35.8%. The Non-GAAP net profit reached HKD 57.7 billion, up 26.2% year-on-year. In Q4 2024, revenue surged by 86.8% year-on-year and 29.0% quarter-on-quarter, while Non-GAAP net profit doubled, increasing by 105.4% year-on-year and 39.6% quarter-on-quarter [1][2]. Summary by Sections Performance Overview - In Q4 2024, brokerage commission and fee income reached HKD 20.6 billion, a year-on-year increase of 127.6%, driven by a 201.7% rise in transaction volume to HKD 2.89 trillion. The U.S. stock trading volume was HKD 2.08 trillion. Interest income also grew by 51.8% to HKD 20.2 billion, with margin financing balance increasing by 53.7% to HKD 50.9 billion [2]. Customer Acquisition and Marketing - The company saw a significant increase in marketing expenses, with sales expenses rising by 154.2% to HKD 4.64 billion, attributed to a substantial growth in new deposit customers. The total number of paid customers grew by 41% to 2.4 million, with new paid users in Q4 2024 increasing by 39% year-on-year [3][4]. Financial Forecast and Valuation - The company anticipates Non-GAAP net profit growth rates of 22%, 21%, and 17% for 2025, 2026, and 2027, respectively. The expected earnings per ADS in USD are projected to be 6.50, 7.88, and 9.25 for the same years, corresponding to P/E ratios of 16.54, 13.65, and 11.63 [5][7].

Investment Rating - The report maintains a rating of "Buy" for Futu Holdings (FUTU.O) with a target price of $137.51, corresponding to a 2025 PE of 24.49x and PB of 5.30x [8]. Core Insights - The significant increase in trading activity in the Hong Kong and US stock markets has driven substantial growth in the company's performance. The number of new asset clients is expected to continue rising, supported by ongoing product development to enhance customer acquisition and retention capabilities [3][8]. Financial Summary - Revenue is projected to grow from HKD 13,590 million in 2024 to HKD 17,946 million in 2025, reflecting a year-on-year increase of 32% [5]. - Net profit is expected to rise from HKD 5,443 million in 2024 to HKD 6,801 million in 2025, indicating a growth of 25% [5]. - The average return on equity (ROE) is anticipated to increase by 1.86 percentage points to 20.70% [8]. Customer Growth and Market Expansion - The company aims to add 800,000 new asset clients in 2025, representing a year-on-year growth rate of 33.18%. Approximately 40%-45% of these clients are expected to come from mature markets like Hong Kong and Singapore, with the remainder from emerging markets in Asia and Australia, as well as the US and Canada [8]. - The company plans to enhance its product offerings, including support for cryptocurrency trading in the US and improvements in trading capabilities for Japanese stocks [8].

Investment Rating - The report assigns a "Buy" rating for Futu Holdings (FUTU US) with a target price raised to $135.00, indicating a potential upside of 25.6% from the current closing price of $107.52 [1]. Core Insights - Futu's Q4 earnings exceeded expectations, with a Non-GAAP net profit of HKD 19.52 billion, representing a year-on-year and quarter-on-quarter growth of 105% and 40%, respectively, marking a record high for a single quarter [5]. - The company reported a strong client growth guidance for 2025, with Q4 adding 215,000 new paying users, a 39.1% increase quarter-on-quarter, surpassing the previous guidance of 550,000 for the entire year [5]. - Futu's trading volume reached a historical high of HKD 2.89 trillion in Q4, with a year-on-year growth of 202% and a quarter-on-quarter growth of 52% [5]. - The wealth management business showed steady improvement, with assets under management increasing to HKD 110.9 billion, a 14% increase quarter-on-quarter, accounting for 15% of client assets [5]. - The report anticipates a 21% year-on-year growth in Non-GAAP net profit for 2025, reflecting the company's robust growth trajectory [5]. Financial Overview - Revenue projections for Futu Holdings are as follows: HKD 10,008 million in 2023, HKD 13,590 million in 2024, and HKD 16,812 million in 2025E, with a year-on-year growth rate of 48.7% for 2023 and 27.0% for 2024 [4][7]. - The net profit is expected to grow from HKD 4,279 million in 2023 to HKD 6,556 million in 2025E, with corresponding growth rates of 46% and 21% [4][7]. - The earnings per share (EPS) is projected to increase from HKD 30.59 in 2023 to HKD 46.88 in 2025E, reflecting a strong upward trend in profitability [4][7]. - The price-to-earnings (P/E) ratio is expected to decrease from 27.3 in 2023 to 17.8 in 2025E, indicating improving valuation metrics as earnings grow [4][7].