Client Assets Expand: Can FUTU's Wealth Management Take Off?

Futu Holdings Limited FUTU reported a record year-over-year client asset surge of 68.1% and a sequential 17.4% rise as of the June quarter. The primary reason behind this outstanding growth was the strong net asset inflow and favorable market-to-market gains from Hong Kong and U.S. equities.

Furthering this drive, the success of FUTU’s international expansion strategy is embedded in its fund account growth. Prominently, Hong Kong was not the only contributor to this client asset increase, as more than 50% of these accounts came from clients outside of Hong Kong. This heightened international penetration is evidenced by net asset inflow nearly doubling in the first half of 2025 from the previous year, with average client assets across different markets showing sequential growth.

On the product front, Yu Chen, Futu Holdings’ chief financial officer, stated that the company made advancements in its offerings, mainly in the first half of the year, and introduced multiple products in domains, including wealth management, fixed income and crypto. These new products position the company as a one-stop investment platform for users, boosting client engagement and drawing new client assets.

Extending this momentum, wealth management is evolving as the next key pillar for FUTU's success. As of the June quarter, the company’s total assets under management are HK$163.2 billion, an impressive 104.4% year-over-year surge. The company has already partnered with more than 80 world-class fund manager companies and collaborated with China Asset Management in Hong Kong to become the first retail distributor for the first tokenized money market funds.

Futu Holdings’ impressive platform, which includes Hong Kong’s first principal-protected structured products, upgrades such as AI-powered advisory and a targeted membership program, solidifies its position in the market. This one-stop-shop strategy is what can position FUTU as the next-gen wealth manager for the masses.

FUTU’s Price Performance, Valuation & Estimates

The stock has skyrocketed 212.9% in the past year, significantly outperforming its competitors, First Advantage Corporation FA, CPI Card Group PMTS, and the industry as a whole. The industry has soared 75.9%, while First Advantage Corp and CPI Card Group declined 16.1% and 43.6%, respectively. FUTU outperformed the 18.9% increase of the Zacks S&P 500 Composite.

1-Year Price Performance

From a valuation standpoint, FUTU trades at a forward price-to-earnings ratio of 21.31, lower than the industry’s 27.39. First Advantage Corp and CPI Card Group hover at 13.88 and 4.57, respectively.

P/E - F12M

FUTU carries a Value Score of A. First Advantage Corp and CPI Card Group carry D and A, respectively.

The Zacks Consensus Estimate for Futu Holdings’ earnings per share for 2025 and 2026 is pegged at $8.24 and $9.17, respectively. For 2025, it is expected to surge 64.5% year over year and rise 11.3% for 2026.

FUTU currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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