FUTU(FUTU) 东吴证券·2024-11-20 10:23Investment Rating - Buy (Maintained) [1] Core Viewpoints - Futu Holdings' 2024 Q3 performance continued its growth trend, with a significant increase in revenue and net profit [1] - The company announced its first special dividend, reflecting its commitment to shareholder returns [1] - Futu's user base and registered clients grew substantially, with strong contributions from overseas markets [1] - The company's revenue and net profit forecasts for 2024-2026 have been revised upwards, indicating positive growth prospects [1] Revenue and Profit Analysis - 2024 Q1-Q3 revenue increased by 19.9% YoY to HKD 9.158 billion, with Q3 revenue up 29.6% YoY to HKD 3.436 billion [1] - 2024 Q1-Q3 net profit attributable to the parent company rose by 4.7% YoY to HKD 3.564 billion, with Q3 net profit up 20.3% YoY to HKD 1.313 billion [1] - Brokerage commissions increased by 31% YoY in 2024 Q1-Q3 to HKD 4 billion, with Q3 commissions up 52% YoY to HKD 1.5 billion [1] - Interest income grew by 10% YoY in 2024 Q1-Q3 to HKD 4.6 billion, with Q3 interest income up 13% YoY to HKD 1.3 billion [1] - Other income increased by 35% YoY in 2024 Q1-Q3 to HKD 530 million, with Q3 other income up 52% YoY to HKD 210 million [1] Cost and Expense Analysis - 2024 Q1-Q3 operating expenses rose by 51% YoY to HKD 1.7 billion, with Q3 expenses up 43% YoY to HKD 630 million [1] - R&D expenses increased by 2% YoY in 2024 Q1-Q3 to HKD 1.09 billion, with Q3 R&D expenses up 7% YoY to HKD 390 million [1] - Sales expenses grew by 79% YoY in 2024 Q1-Q3 to HKD 950 million, with Q3 sales expenses up 48% YoY to HKD 380 million [1] - Administrative expenses increased by 11% YoY in 2024 Q1-Q3 to HKD 1.04 billion, with Q3 administrative expenses up 18% YoY to HKD 310 million [1] User Growth and Market Expansion - Futu's platform users, registered clients, and funded clients increased by 14%, 23%, and 33% YoY respectively in 2024 Q3 [1] - The company added 154,000 new funded clients in Q3, a 138% YoY increase, with significant contributions from Hong Kong and Singapore markets [1] - Overseas markets, including Japan, Canada, Malaysia, and Australia, saw double-digit growth in funded clients in Q3 [1] Special Dividend and Shareholder Returns - Futu announced a special cash dividend of USD 0.25 per ordinary share or USD 2 per ADS, totaling approximately USD 280 million [1] - The dividend represents 8% of the company's equity capital at the end of Q3, with no expected hindrance to future growth [1] Financial Forecasts and Valuation - 2024-2026 net profit forecasts have been revised upwards to HKD 5.03 billion, HKD 5.62 billion, and HKD 6.543 billion respectively [1] - The current market valuation corresponds to 2024-2026 PE ratios of 18.50x, 16.56x, and 14.22x [1] - The company's long-term growth potential is considered substantial, supported by its expansion into overseas markets and user base growth [1]