Futu: In A Bull Rush, Buy The Brokerage That Sells Shovels

KL Research
218 Followers
(15min)

Summary

  • Futu is a compelling long-term buy, benefiting from robust retail trading, strong IPO activity, and expanding international presence through Moomoo.
  • Q1 2025 results exceeded expectations, with significant growth in revenue, net income, and funded accounts, signaling strong operational momentum.
  • Expansion into cryptocurrencies and continued overseas growth position Futu to surpass management's 2025 account guidance and diversify revenue streams.
  • Despite risks from rate cuts and competition, Futu's high margins and industry-leading profitability support a 25-30% upside, making it a quality accumulation opportunity.

Hong Kong, China: A Futu branded promotional truck advertising cryptocurrency services, featuring Bitcoin imagery and Chinese text, parked on an urban street.

Kilc32/iStock Editorial via Getty Images

Introduction

In a gold rush, the best way to profit is to sell shovels and dig. Similarly, in a bull market, retail brokerage firms are expected to benefit from increased trading volumes, higher asset inflows, and a rise in account

This article was written by

218 Followers
A long-term investor passionate about Equity Research. My investment objective is to identify market asymmetries with positive reward-to-risk. I invest in high-quality, wide-moat companies that generate strong cash flow and trade at a fair price relative to their value. My research interests cover technology & semiconductors. Please feel free to subscribe to my channel to support its development.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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