A little break from the AI boom - evaluate this instrument: is it an interesting potential investment for you? I'm interested in your opinion.
! Q3 2026 results will be released on Wednesday, November 19, 2026 !
Company and Ticker: Futu Holdings Ltd $FUTU
Business: Digital brokerage and wealth management platform providing investment services and securities trading for global retail investors.
Growth catalyst: Massive acceleration of international expansion (Southeast Asia, US), combined with a boom in retail trading of US stocks, derivatives, and digital assets.
Revenue growth: Q2 2026 YoY 35.6% vs TTM ~32.4% vs FY 2025 28.5% (acceleration condition met: 35.6% > 32.4% > 28.5%)
Forward PEG: 0.20, P/E: 9.69 (Forward P/E: 8.48)
TTM margins: Gross 94.5%, Operating 69.1%, Net profit 42.5%
Last FY margins: Gross 94.4%, Operating 66.8%, Net profit 40.2%
Adjusted FCF margin (TTM): (FCF - SBC) / Revenue = 145.2% (exceptionally high conversion thanks to robust growth in client deposits and trading cash, with minimal capex)
Adjusted FCF margin (Current Q): (FCF - SBC) / Revenue = 138.6%
FCF conversion: FCF / Net profit = 149.9% (alternative for the financial sector: ROE = 29.0%)
DCF valuations: $172.67 (GF Value / Intrinsic Value) vs current share price: $95.48
Book-to-Bill / RPO: Growth in Total Client Assets YoY +43.6% to 1.40 trillion HKD (proxy for client commitment potential and balances)
SI: 3.03% (Short Interest as a percentage of float)
Institutional investors (13F): Buyers 60.4% vs Sellers 39.6% (Current Q - 237 buying vs 155 selling institutions) vs Buyers 65.2% vs Sellers 34.8% (previous Q)
Evidence of real demand (Volume KPI from MD&A): Total Trading Volume = 6.42 trillion HKD, up +78.8% YoY; Funded Accounts = 3.84 million, up +33.6% YoY. Analyst commentary: Revenue growth is not driven solely by margin expansion, but primarily by a massive increase in actual transaction volume (especially on US exchanges) and an influx of new fully funded accounts, confirming healthy, organic demand for the platform.