Company Coverage
Futu Holdings (FUTU US): 2Q26: Strong Results Beat Despite Regulatory Headwind
BUY (Maintained)
Current price:
Target price:
Upside:
US$112.73
US$137.00
+21.5%
Analyst
Analyst
Highlights
- Despite regulatory headwinds, Futu still delivered strong results with a 42%
yoy earnings growth, supported by strong trading volume (+79% yoy).
Maintain BUY with an unchanged target price of US$137.00.
Analysis
- Results beat amid regulatory crackdown. Futu Holdings’ (Futu) 1Q26
earnings rose 42% yoy to HK$3.6b, 11%/16% above our and the Street’s
estimates, mainly driven by strong commission income (+30% yoy) and a
sequential recovery in interest income (+18% qoq/+37% yoy).
- Reaching 60% of full-year new paying client target. Futu added 252,000
of net new funded accounts in 2Q26, led by Malaysia, Hong Kong and
Singapore. Overseas markets now account for 60% of total funded accounts
and the average revenue per new paying client in overseas markets also rose
sequentially. Futu maintains its 800,000 new paying client target in 2026 and
expects client acquisition to moderate in 3Q26, considering: a) the Japan
regulator has suspended new account openings for three months due to
compliance failures, and b) the recent market pullback.
Highlights
- Despite regulatory headwinds, Futu still delivered strong results with a 42%
yoy earnings growth, supported by strong trading volume (+79% yoy).
Maintain BUY with an unchanged target price of US$137.00.
Analysis
- Results beat amid regulatory crackdown. Futu Holdings’ (Futu) 1Q26
earnings rose 42% yoy to HK$3.6b, 11%/16% above our and the Street’s
estimates, mainly driven by strong commission income (+30% yoy) and a
sequential recovery in interest income (+18% qoq/+37% yoy).
- Reaching 60% of full-year new paying client target. Futu added 252,000
of net new funded accounts in 2Q26, led by Malaysia, Hong Kong and
Singapore. Overseas markets now account for 60% of total funded accounts
and the average revenue per new paying client in overseas markets also rose
sequentially. Futu maintains its 800,000 new paying client target in 2026 and
expects client acquisition to moderate in 3Q26, considering: a) the Japan
regulator has suspended new account openings for three months due to
compliance failures, and b) the recent market pullback.
BUY (Maintained)
Current price:
Target price:
Upside:
US$112.73
US$137.00
+21.5%
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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