Futu Holdings Fine clarity and share buyback help stabilize shares; investor views mixed

研报英文原文证据摘录

Futu Holdings Fine clarity and share buyback help stabilize shares; investor views mixed

J P M O R G A N Asia Pacific Equity Research

24 May 2026

Futu Holdings Neutral

FUTU, FUTU US

Fine clarity and share buyback help stabilize shares; Price (22 May 26):$89.76

investor views mixed ▲Price Target (Dec-26):$100.00 Prior (Dec-26):$87.00

Futu’s share price corrected 28% (vs KWEB -3%) on May 22, as regulatory

tightening meaningfully increased the earnings risk for Futu. Nonetheless, we Banks & Financial Services

expect the share price to stabilize, as Futu’s announcement of the CSRC-proposed Katherine Lei AC

fine amount of Rmb1.85bn (link) for conducting cross-border business (852) 2800-8552

meaningfully reduces earnings uncertainty, which we had highlighted in our katherine.lei@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

downgrade note (link). On top of that, Futu’s execution of US$160mn of share Morgan Broking (Hong Kong) Limited

ACbuyback is also a show of confidence by management. Investor feedback has been Peter Zhang

mixed. On the positive side, some investors believe the current valuation has (852) 2800-8557

discounted all profit contributions from Mainland clients, and the announced peter.zhang@jpmorgan.com

proposed fine eases the earnings overhang; thus, they see upside risk to the share J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

price from here. On the negative side, some clients argue that regulatory risk still

Lincoln Yu

persists. We are revising EPS forecasts to factor in the regulatory actions. We are (852) 2800 8523

lifting our Dec-26 PT from $87 to $100, with the P/E multiple rising from 10x to lincoln.yu@jpmorgan.com

11x on normalized 2026E EPS. We maintain our Neutral rating. If management can J.P.