Strong performance by Futu Holdings, yet shares struggle

Futu Holdings Delivers Strong Second Quarter Results

Futu Holdings, the Hong Kong-based online brokerage firm, has reported a impressive performance in the second quarter of the year. The company, led by founder and chairman Li Hua, saw a significant surge in profits and trading volume.

The earnings per ADR for Futu Holdings reached 18.24 Hong Kong dollars (HKD) in the second quarter, more than double the earnings from the same period last year (8.66 HKD). This increase was driven by a robust trading volume, which reached 3.59 trillion HKD, more than double the volume from the year-ago period.

High market volatility and high-profile IPOs in Hong Kong contributed to the growth in new accounts for Futu Holdings. The company added over 204,000 new paying accounts, marking a 31.6% year-over-year increase. This growth made Hong Kong the region with the most new accounts for Futu Holdings for the third consecutive quarter.

The trading volume on US exchanges for Futu Holdings was 2.70 trillion HKD in the second quarter, up 19.7% from the year-ago period. The increase was primarily driven by trading in EV manufacturers and crypto stocks.

Despite the strong results, the stock of Futu Holdings reacted with a slight pullback in early US trading following the publication of its quarterly results. However, DER AKTIONÄR, a financial analyst, has recommended using the pullback as a buying opportunity for Futu Holdings.

The revenue for Futu Holdings increased by 70% to 5.31 billion HKD in the second quarter, exceeding analyst estimates. The trading volume for the second quarter was also more than analysts expected, with actual volume of 3.59 trillion HKD.

Futu Holdings Ltd (WKN: A2PCBR) remains in an overall uptrend towards its year-to-date high of around 180 dollars. The company's continued growth and strong performance suggest that it will continue to attract investors and maintain its position in the online brokerage market.