Futu Holdings (NASDAQ: FUTU) saw shares bounce 25.9% in June, according to S&P Global Market Intelligence. It surpassed the Nasdaq, which rose 5.5% last month.
Hong Kong-based Futu is a fintech technology that offers a platform for digital intermediation and wealth management. It has been called the Robinhood of China. The company went public in March 2019 at about $ 15 a share and has since been on a rocket. So far it has risen by about 250% and is trading around $ 159.
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The nearly 26% rise in the share price in June reflects the meteoric growth of the trading platform. The number of paying customers, or with assets in their Futu accounts, rose 231% year-on-year to 789,652 in the first quarter. The total number of account holders increased by 70% year-on-year to 14.2 million. Average daily assets of customers were 385 billion Hong Kong dollars ($ 49 billion), up 303%, and the total volume of transactions increased by 277% to $ 283 billion in US dollars. . About 63% of this corresponded to US equities.
This resulted in a 349% increase in revenue to $ 284 million and a 373% increase in gross profit to $ 226 million. Net income rose more than sixfold year-on-year to $ 149 million.
Futu is one of the hottest growth stocks on the market and shows no signs of slowing down. It has the final wind of the global trend towards digital commerce, which has opened the door to new and young investors. It has a large addressable market, given the growth of the Chinese market through the growing middle and upper classes. In March, it expanded to Singapore and wants to grow even further in Southeast Asia.
Futu has a great business model with high margins and the potential to be a good growth story for a long time.
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