Futu Holdings Stock Intrinsic Value – Futu Holdings Pulls App from Mainland China, Stock Slides in Response
May 17, 2023
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Futu Holdings ($NASDAQ:FUTU), a leading Chinese online-brokerage provider, has recently been met with some unexpected stock market losses as the company decided to pull its app from Mainland China app stores. This news has resulted in stock prices dropping to their lowest levels in two years. The decision to pull the app from Mainland China app stores has been met with criticism from investors and analysts alike, who are concerned that this could lead to a significant decline in customers and revenue for Futu Holdings in the future.
However, the company believes that the move is necessary to stay compliant with the changing regulatory landscape in the region. It remains to be seen how this decision will affect the company’s bottom line in the long-term, but investors should keep a close eye on Futu Holdings and its stock prices over the coming months.
Market Price
On Tuesday, FUTU HOLDINGS pulled their mobile app from China, resulting in a sizable decline in their stock prices. At the start of the day, their stock opened at $39.5 but closed at $41.2, down by 4.4% from the prior closing price of 43.2. This is the first time the company has taken such an action and the effects have been immediate and drastic.
The move to remove their app from the mainland market follows a string of regulatory changes that have made it difficult for foreign companies to operate in China. Investors responded by selling off their shares of FUTU HOLDINGS in response to the change, leading to the drop in share prices. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Futu Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 6.62k | 2.93k | 44.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Futu Holdings. More…
| Operations | Investing | Financing |
| 2.98k | -963.57 | 10.55k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Futu Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 94.5k | 73.64k | 143.77 |
Key Ratios Snapshot
Some of the financial key ratios for Futu Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 104.0% | – | – |
| FCF Margin | ROE | ROA |
| 43.7% | 10.2% | 2.2% |
Analysis – Futu Holdings Stock Intrinsic Value
At GoodWhale, we have been closely examining the financials of FUTU HOLDINGS and analyzing them in great detail. After our analysis, we have determined that the fair value of FUTU HOLDINGS share is approximately $91.2, as calculated by our proprietary Valuation Line. This suggests that the current market price of $41.2 is substantially undervalued by 54.8%. As a result, FUTU HOLDINGS may present an attractive opportunity for investors who are looking to get into a relatively unknown stock with a large potential upside. More…
Peers
The competition between Futu Holdings Ltd and its competitors, Excalibur Global Financial Holdings Ltd, TOP Financial Group Ltd, and Interactive Brokers Group Inc, is fierce. As these companies strive to provide the best services and products to their customers, they must constantly be looking for new ways to stay ahead of the competition. Each company brings unique strengths and weaknesses to the table, making the competition even more dynamic.
– Excalibur Global Financial Holdings Ltd ($SEHK:08350)
Excalibur Global Financial Holdings Ltd is a financial services company with a market capitalization of 120M as of 2022. The company provides a range of services, including asset management, investment banking, and wealth management. Despite the company’s impressive portfolio of services, its Return on Equity (ROE) has been negative, registering -166.06%. This suggests that the company has not been able to generate sufficient profits to cover its investments. The company’s negative ROE may be caused by a number of factors, including a lack of liquidity or an overly aggressive investment strategy. Moving forward, Excalibur Global Financial Holdings Ltd will need to focus on increasing its profitability if it is to remain competitive in a highly competitive market.
– TOP Financial Group Ltd ($NASDAQ:TOP)
Top Financial Group Ltd is a publicly listed financial services provider based in Hong Kong. Founded in 1972, the company provides a range of services including retail banking, wealth management, corporate finance, online banking and securities trading to their customers. As of 2022, the company has a market capitalization of 164.38M and a return on equity (ROE) of 25.13%. The company’s market cap indicates its current share price multiplied by the total number of outstanding shares and provides a measure of the size of the company. The high ROE indicates that Top Financial Group is utilizing its resources efficiently and effectively to generate income. This is a strong indicator of the company’s financial health and performance in the market.
– Interactive Brokers Group Inc ($NASDAQ:IBKR)
Interactive Brokers Group Inc is a global electronic trading and financial services company. Founded in 1977, the company’s brokerage operations are supported by a network of 19 international subsidiaries and offer customers direct access to stocks, options, futures, forex, bonds, and funds worldwide from a single IBKR integrated account. As of 2022, the company has a market capitalization of 7.15 billion and a Return on Equity of 44.51%. This impressive market cap and high ROE reflect the company’s commitment to delivering superior value to its customers. Interactive Brokers Group Inc is a global leader in the electronic trading of securities and commodities, providing innovative technology and services to both retail and institutional investors.
Summary
Futu Holdings is a Chinese online broker-dealer. The company recently announced that it will be pulling its app from Mainland China app stores, resulting in a drop in its stock price. This has been a cause for concern for investors, as the company’s ability to generate income may be hindered by the move. Despite the stock price dip, analysts remain optimistic about the company’s future prospects.
They point to the potential of its existing technology and product offerings, as well as its high customer base and strong brand recognition in Asia. They believe that Futu Holdings is well-positioned to take advantage of the growing demand for online trading and digital investing services in the region.
