Hong Kong's Futu Q2 revenue jumps on strong trading activity
Hong Kong's Futu Q2 revenue jumps on strong trading activity
Overview
Hong Kong online brokerage's Q2 revenue rose 36% yr/yr, driven by higher trading volume
Q2 net income climbed 42% yr/yr, with adjusted net income up 40%
Company repurchased 3.8 mln ADSs for US$418 mln in Q2
Outlook
Company did not provide specific financial guidance or outlook for upcoming quarters or full year
Result Drivers
TRADING ACTIVITY - Co said record trading volume, especially in U.S. stocks, was driven by heightened client interest in semiconductor and AI value chain names
CLIENT ASSET GROWTH - Co attributed increase in client assets mainly to higher market valuation of clients’ stock holdings and net asset inflow
MARGIN FINANCING - Co said margin financing and securities lending balance rose due to active Hong Kong IPO market and upbeat sentiment fueling higher leverage utilization
Company press release: ID:nGNX6J7ckF
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| HK$7.20 bln |
|
Q2 Net Income |
| HK$3.65 bln |
|
Q2 Gross Profit |
| HK$6.21 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for Futu Holdings Limited is $152.00, about 38.9% above its August 19 closing price of $109.42
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)