三季报强劲超出预期，主要得益于稳健的净资产流入和净利息收入的回升

Futu Holdings (FUTU US) resilient net asset inflows andNII recovery 3Q earnings a strong beat,driven by resilient netasset inflows and NIIrecovery Futuposted a strong set of3Q results withnon-GAAP net income surging 137%/25%YoY/QoQ to HK$3.3bn on top of a high base, significantly beating market consensusof HK$2.6-2.7bn. 3Q25gross profit doubledYoYto HK$5.6bn, leading to the highestGPMof 87.6% since 2Q23. The strongtoplinegrowth was driven by 1) sequentiallyincreased trading volumesto HK$3.9tn thatsupported brokerage commission incomegrowthof90.6% YoY in 3Q25; 2)a rebound innet interest income amidtheHIBORrecovery in 3Q25andsustainedstrong demandsforhard-to-borrow securities’lendingbusiness; and 3) other income (+113% YoY) includinghigherfund distribution, IPOsubscription service charge and FX income. Total client assets grew 78.8%/27.4%YoY/QoQ to HK$1.24tn driven by robust net asset inflows(~HK$89bn)and significantMTMappreciationon clients’ assetholdings(CMBI est:HK$177bn). The number ofnew funded accounts reached 254k in 3Q25, up 65%/25% YoY/QoQ,contributing to Target PriceUS$228.00(Previous TPUS$226.00)Up/Downside35.9%Current PriceUS$167.74 China Financials Nika MA(852) 3900 0805nikama@cmbi.com.hk 3Q highlights:1) Total clientassetsreachedHK$1.24tn in 3Q25, up 79%/27%YoY/QoQ driven by robust growth of average client AUM and new funded accounts.Specifically,mark-to-market gains on client asset holdings contributed two-thirds ofincrements (CMBI est: HK$177bn),supportedbystrong net asset inflows (CMBI est:HK$89bn).2) New funded accountsincreased by65%/25% YoY to 254.3k in 3Q,with improved geographicpresencewhere Hong KongandMalaysia’snewpayingclients accounted for one-half of total and othermajor markets contributed 5%-15%.Hong Kongled in new client additions for the fourth consecutive quarter,thanks tothe outperformingstock marketandrobust IPO pipeline.Cumulative new fundedaccounts arrived at 720k by 9M25, reaching 90% of the year-start 800k annual target. Total funded accounts rose 43%/9% to 3.13mn by 9M25, with the mix ofoverseas markets further enhanced to 54% (vs. 2Q25:51%,CMBI est).3)Totaltrading volumesurged 105%/9% YoY/QoQto HK$3.9tn, with a noticeable trendshifting to HK stocks turnover in 3Q, which made up 31% of total volume atHK$1.19tn, up 2.4x/43% YoY/QoQ, the highest since 2Q23. US stocks turnover wasbroadly flat at HK$2.6tn in 3Q25with clientspreferringUS tech and crypto names.4)NIIwasdoubled/up 35% YoY/QoQ to HK$2.57bn, thanks to the rise ofinterestincome (+79%/+33% YoY/QoQ) ontheback of a rebounded HIBORand sustainedstrong demand for the hard-to-borrow securities lending business.Mgmt. mentionedin call that the latest interest rate sensitivityto a 25bps rate cut amounts to a HK$7mndeclinein pre-tax profit,translating into 0.6%-0.7%of our FY25/26E pre-tax Source: FactSet Auditor: PwC Related reports: 1.Futu Holdings (FUTU US)-Marketingfeedback:short-term views mixed;3QEPSupside to reinforce long-term 2.. Futu Holdings (FUTU US)-Pioneeredone-stop financial services platform torideon crypto advancements;Initiate Risk-reward remains attractive.TheADR is trading at 17x/16x FY25E/26E P/E,attractive compared to the peers average of 30x/27x. We think the broker’s currentvaluation remains undemandingwithits 3yr forward ROE at above 26% vs. a peer group average of 20% (Fig.2). We revise up our FY25E-27E earnings estimates perADS toUS$75.8/79.1/89.3(up 11%/5%/4%) to reflect the stronger-than-expected3Qresults, and lift our TP to US$228 per ADSbased on probability-weighted methodof DCF and a target P/E multiple, whichcorresponds to24x/23x FY25E/26E P/E. Catalysts:1)updates on the HK VATP license approval by year-end or early 2026;2) improvedgeographicpresencewith overseas market penetration quickly rampingup; 3) breakthroughs on new market entry and regulatory license approvals related Downside risks:1)easing sentiment and sharp corrections on the US/HK stockmarkets; 2) the extent and pace oftheFed pivotfell short of expectations; 3) crypto Source: Bloomberg,CMBIGMestimatesNote: The estimates of Futu’s peer companies quoted from Bloomberg Source: Wind,CMBIGMestimates Disclosures& Disclaimers AnalystCertification The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressedaccurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong KongSecurities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendardays prior to the date of issue of th