FUTU(FUTU) 民生证券·2024-11-20 13:25Investment Rating - The report does not explicitly state an investment rating for Futu Holdings (FUTU) [2] Core Views - Futu Holdings reported Q3 2024 revenue of HKD 34.4 billion, exceeding Bloomberg consensus expectations of HKD 33.3 billion, with a year-over-year (yoy) increase of 30% and quarter-over-quarter (qoq) increase of 10% [2] - Net profit for Q3 2024 was HKD 13.2 billion, up 21% yoy and 9% qoq, while Non-GAAP net profit was HKD 14 billion, also up 21% yoy and 8% qoq [2] - The company announced a special cash dividend of USD 0.25 per share or USD 2 per ADS, totaling approximately USD 280 million [2] - Trading volume growth, particularly in US stocks, drove commission income, with US stock trading volume accounting for 80% of total trading volume [2] - Interest income increased by 13% yoy and 7% qoq, driven by higher average margin financing balances and increased idle fund interest income [2] - Other income surged 52% yoy and 29% qoq, primarily due to increased fund distribution and foreign exchange income [2] - Cost control was effective, with a gross margin of 81.8%, though net profit margin declined due to foreign exchange losses [2] - Overseas markets contributed significantly, with net inflows exceeding HKD 10 billion for three consecutive quarters [2] - The company's wealth management business saw total assets under management (AUM) grow to HKD 973 billion, up 88% yoy and 22% qoq [2] Key Metrics and Performance Revenue and Profit - Q3 2024 revenue: HKD 34.4 billion, yoy +30%, qoq +10% [2] - Net profit: HKD 13.2 billion, yoy +21%, qoq +9% [2] - Non-GAAP net profit: HKD 14 billion, yoy +21%, qoq +8% [2] Trading and Commission Income - Brokerage commission income: HKD 15.3 billion, yoy +52%, qoq +11% [2] - Total trading volume: HKD 1.9 trillion, yoy +75%, qoq +17% [2] - US stock trading volume: HKD 1.5 trillion, yoy +90%, qoq +23%, accounting for 80% of total trading volume [2] - Mixed commission rate: 8bps, yoy -1.2bps, qoq -0.5bps [2] Interest and Other Income - Interest income: HKD 17 billion, yoy +13%, qoq +7% [2] - Other income: HKD 2.1 billion, yoy +52%, qoq +29% [2] Cost and Expense Management - Gross margin: 81.8%, yoy -1.7pct, qoq +0.2pct [2] - R&D expenses: HKD 3.8 billion, yoy +7%, qoq +3% [2] - Sales expenses: HKD 3.1 billion, yoy +49%, qoq -7% [2] - Management expenses: HKD 3.8 billion, yoy +18%, qoq +5% [2] - Operating profit: HKD 17.3 billion, yoy +31%, qoq +17% [2] - Net profit margin: 38.4%, yoy -2.8pct [2] Client and Asset Growth - Net new funded clients: 154,000, yoy +138%, qoq flat [2] - Total funded clients: 2.2 million, yoy +33%, qoq +8% [2] - Client retention rate: over 98% [2] - Total client assets: HKD 6.934 trillion, yoy +48%, qoq +20% [2] - Wealth management AUM: HKD 973 billion, yoy +88%, qoq +22%, accounting for 14% of total client assets [2] Overseas Market Performance - Overseas markets contributed over HKD 10 billion in net inflows for three consecutive quarters [2] - Singapore client assets: qoq +18% [2] - Malaysia and Canada client assets: high double-digit qoq growth [2] Investment Recommendation - The company is expected to benefit from the resonance of Hong Kong and US stock market beta, with strong momentum in net inflows, trading volume, and turnover rates likely to continue in Q4 [2] - Expansion in Malaysia and Japan, along with the enrichment of overseas market product offerings, is expected to open new growth opportunities [2] - Based on Bloomberg consensus, the company's 2024/2025 PE ratios are 18X and 14X, respectively, indicating significant room for improvement compared to overseas peers [2]