On May 28, Futu Holdings rose 6.05% in regular trading, trading at $108.09/share, with trading volume of $346 million. The stock reversed earlier pre-market weakness triggered by a Q1 earnings miss, as investors focused on underlying business strength.

Futu reported Q1 revenue of HK$5.86 billion, up 24.7% year-over-year but slightly below the FactSet estimate of HK$5.97 billion. Net income fell 61.2% to HK$831 million due to a one-time provision of HK$2.133 billion related to the CSRC regulatory penalty. Excluding this charge, adjusted net profit would have been approximately HK$3.01 billion, up 35.8% year-over-year. Core operating metrics remained robust, with paying clients reaching 3.59 million (up 34.3%) and total client assets hitting HK$1.22 trillion (up 47%).

The intraday rally extends a broader recovery from the May 22 selloff when the stock plunged 27.5% on the regulatory penalty announcement. S&P Global affirmed that Futu's business flows should remain stable over the next two years given its diversification away from mainland China, where client share has declined from over 30% in 2022 to approximately 13%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)