Futu Holdings Limited (FUTU) PT Lowered to $75.30 at Citi

Citi analyst Judy Zhang lowered the price target on Futu Holdings Limited (NASDAQ: FUTU) to $75.30 (from $76.90) while maintaining a Buy rating.

The analyst comments "Futu reported 4Q23 non-GAAP NPAT of HK$950.5bn (down -17.9% q-q/ -6.3% y-y), bringing FY23 non-GAAP NPAT to reach HK$4.57bn, which missed Citi expectation by 1.4%. 4Q23 gross profit fell -11.1% q-q to HK$2.0bn in 4Q23, dragged by i) weak brokerage commission income (-10.7% q-q) on muted trading volume (-12.2% q-q), which more than offsets the positive from blended commission rate uptick (+0.1bp q-q), and ii) lower net interest income (-12.7% q-q) due to decline in both daily average client cash balance & stock borrowing balance in 4Q23. Operating profit was down -22.5% q-q/-8.5% y-y to HK$1.02bn, with OPM dipped notably by -7.3ppt q-q/-5ppt y-y to 50.1% in 4Q23. ROE fell by -4.4ppt q-q/ -4.0ppt y-y to 15.8% in 4Q23 while core leverage fell -0.1x q-q to 2.1x in 4Q23. Futu launched a new share repurchase program to buy back up to USD500mn of its ADSs (valid until end-2025)."

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