Report Summary

• Futu Holdings delivered a strong 4Q25 earnings beat, with net profit up 81% year-on-year, driven by resilient net interest income and effective cost control despite challenging market conditions.
• Management guided for 800,000 new paying clients in 2026 and saw robust net asset inflows, especially from Japan and Malaysia, while maintaining disciplined operating expenses and expanding its crypto services ecosystem.
• Brokerage income experienced a slight quarterly decline due to lower trading velocity and commission rate compression, but overall client assets remained stable and margin financing activity increased.
• Cost management led to improved profit margins, and the company remains confident in its growth trajectory, raising its target price to US\$260.00 and maintaining a BUY rating.
• Futu’s forward PE valuation is considered attractive, and earnings forecasts for 2026-27 have been revised upward to reflect strong client acquisition and asset inflows.