Futu combines 33.3% FY25 ROE, 86.3% gross margins, and accelerating international growth with a regulatory-discounted 12.2x P/E.
Overview
Futu is a technology-driven online brokerage and wealth-management platform serving retail and corporate customers across Hong Kong and international markets through Futubull and Moomoo. It earns brokerage commissions, interest income from margin and cash balances, and other income from FX, fund distribution, IPO, investor-relations, and ESOP services. **Q2 2026 demonstrated strong operating momentum:** revenue reached HK$7,200.2 million, up 35.6% year over year and 21.83% above consensus, while GAAP net income rose 41.6% to HK$3,641.9 million. Record trading volume of HK$6.42 trillion, client assets of HK$1.40 trillion, and margin balances of HK$95.1 billion show strong activity and asset gathering. Gross margin remained 86.3%, net margin reached 50.58%, and FY25 ROE was 33.3%. The stock trades at a 12.22x trailing P/E and 11.63x normalized P/E, below global peers because of regulatory concerns. Near-term catalysts include 800,000 targeted 2026 net new funded accounts, stable CAC near HK$2,600, international profitability, options activity, and wealth-management inflows. The five-year probability-weighted target is $226.43 versus the report’s $109.42 reference price.