1. $FUTU ($43.78, +336% YTD), 52WL8.15, 52WH 51.1, MCap $6.17B is a China based Fintech company, helping young affluent Chinese invest in stocks

2. $FUTU: Since others have written about it briefly, I will like to that, but I wanted to focus more on the product, experience and why I like this company long term
Read: Basic overview: https://getbenchmark.substack.com/p/a-look-at-futu-celsius-and-uber-
Read: About founder: https://www.ft.com/content/2251f7bf-274b-4983-84ca-59f95bde557e

3. $FUTU: Company is backed by $TCEHY and founded by Leaf Hua Li, who was an ex $TCEHY employee, who loved trading and was frustrated with traditional brokerages in China at that time. Think $SCHW vs. $Robinhood

4. $FUTU: Q3 Revenue (11/19/2020 reported) jumped 272% to USD$122M, earnings jumped to 39c from 2c a year ago.

5. $FUTU: CEO Leaf is the largest shareholder with 37% of the ownership followed by $TCEHY (28%)

6. $FUTU: Company operates 2 trading apps - FutuBull and Moomoo. I have downloaded and setup a non-operating account (you need a China issued ID to open an operating account).

7. $FUTU: The company has 1.2 Million registered users (comparison Robinhood has 3+ Million last reported users as of 3/20).

8. $FUTU: Rather than offering mainland China stocks, Futu differentiates itself by offering investors stock trading in HKG market. This includes $BABA, Xiaomi, etc.

9. $FUTU: Providing broker services for A shares is really competitive and the licenses aren’t that easy to get. $FUTU has acquired the licenses to operate in Singapore and U.S. as well, and is currently testing its products before a wider launch.

11. $FUTU: Competitors in China include Ant Financial, $LU Lufax and $CAN Canan for stock (local) access

12. $FUTU: The company makes money by transaction fees and margin (unlike Robinhood which makes most if its money on PFOF (Payment for order flow).

13. $FUTU: The app itself is very social. Imagine you had Twitter + Robinhood + Facebook all combined in one. You can follow company, get comments, opinions, follow "top investors" mirror their portfolio and trade all in one place

14. $FUTU: Market: Household wealth in China is expected to increase to $35 Trillion by 2025. Combined with a large, young, aggressively focused on wealth building population the company I think will do very well

15. $FUTU: Key metrics and numbers you should track to understand how the business is doing:
1. # of Users
2. Assets under Management (AUM)
3. Trading volume (indicator for revenue)
4. Margin and lending balance ($ and # clients)
5. # of top trading profiles (platform engagement)

16. $FUTU: RISKS:
1. China risk (not going to extrapolate)
2. Trading revenues are correlated with market perf. So, revenues might be up and down since markets are doing well now
3. Competition from $CAN and local (Haitong, Huatai) can get international licenses and drop fees

17. $FUTU: Overall:
Positives: The product (I wish we had this in the US), the user experience, the founder's story, $TCEHY is invested, growth numbers, market potential
Negatives: China concerns, Stock is UP 300+% already in 2020, and brokerage is VERY competitive biz

18. $FUTU: I have bought and will continue to buy this stock, with an expectation that I will keep this for a year and expect to have support at $40 and a target of $72 by 2021 end (upside 67% from Dec 2020)

19. $FUTU: Errors / Omissions and mistakes (1): As of 2020 Robinhood has 13 Million users, As of 2018 the number was 3 Million (My mistake, I took the wrong number from Wikipedia)
https://en.wikipedia.org/wiki/Robinhood_(company)

20. $FUTU: Support for my $67 PT in 1 year assumes
a) growth rates at over 90% annual to rev at USD$245M (estimates are 100%),
b) stock market continues to trend upward in 2021 (HKG,US),
c) P/E at 55 (peers are lower at 35) and
d) China stock discount at 15%