Broker Name: UOB Kay Hian
Date of Report: Friday, 13 March 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Futu Holdings delivered strong 4Q25 results, beating expectations with 81% year-on-year net profit growth, driven by resilient interest income and disciplined cost control despite weak market sentiment in Hong Kong equities and crypto.
- The company added 234,000 new paying clients in the quarter and targets 800,000 new funded accounts in 2026, with robust asset inflows, especially from Japan, Malaysia, Hong Kong, and Singapore.
- Net interest income remained steady due to higher margin financing and lower interest expenses, while other income grew significantly from wealth management and IPO services.
- Operating expenses dropped 8% quarter-on-quarter, and customer acquisition cost remained stable; however, 2026 costs may rise with new market expansions in Asia.
- Crypto trading volume was resilient and management expects further growth once virtual asset trading licenses are secured, including new crypto margin and staking services.
- Despite market volatility, Futu’s management expects record net asset inflows in 1Q26, flattish trading volumes, and continued strength in margin financing and securities lending balances.
- UOB Kay Hian maintains a BUY rating, raising the target price to US\$260.00, reflecting positive earnings revisions and confidence in Futu’s ability to deliver resilient growth and weather market downturns.
- Futu’s valuation remains compelling at 12x 2026F PE, and the broker has lifted 2026-27 earnings forecasts by 6.5% and 5.7% respectively on strong client and asset growth.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website: https://research.uobkayhian.com/
