• 3Q24 results in line, with strong top-line growth across the board.

• All key operating metrics up nicely QoQ, except blended commission rate.

• We have a BUY rating with a TP of US$7.58 (20.0x 2025E P/E).

3Q24 earnings in line. UP Fintech (TIGR) posted 3Q24 non-GAAP net profit of US$20.1mn, +286% QoQ and +26% YoY, in line with our estimate and Visible Alpha consensus. The strong 3Q24 results were mainly helped by strong trading volume and MFSL balance. Total revenue was up 16% QoQ to US$101.1mn, beating our estimate and Visible Alpha consensus by 3% each, helped by strong commission income (+21% QoQ) and solid interest income (+9% QoQ). Other revenue was up 45% QoQ, bouyed by the increase in IPO subscription incomes. New paying clients rose 3.3% QoQ to 50,500 in 3Q24, in line with our expectation, while customer acquisition cost rose to US$163 (vs US$131 in 2Q24), based on our calculation. In addition, TIGR enjoyed solid net asset inflow from retail clients and mark-to-market gains, which led to 6.8% sequential growth in client assets in 3Q24, while the trading volume of stocks and trading velocity were both up strongly QoQ. Gross commission rate was down 0.7bp QoQ in 3Q24, likely due to a higher trading volume contribution from options and futures.

• New paying clients numbered 50,500 in 3Q24, up 3.3% QoQ and 105.3% YoY, and TIGR’s total paying clients reached 1mn (+19% YoY).

• Client assets reached US$40.8bn, +7% QoQ (+116% YoY), helped by strong net asset inflow from retail clients and mark-to-market gains, with average assets per paying client of US$39,504, +2% QoQ (+81% YoY). Margin financing and securities lending balance (MFSL) was US$4.46bn (11% of client assets), +29% QoQ (+102% YoY).

• Trading volume of stocks was US$41.4bn, +24% QoQ (+87% YoY), with annualized trading velocity (trading volume/average client assets) of 4.2x vs 4.9x/ 3.8x in 3Q23/ 2Q24. The number of options and futures contracts traded reached 15.3mn, +25% QoQ (+87% YoY). Total trading volume (incl. stocks and derivatives) was US$163bn, +54% QoQ (+103% YoY), and gross commission rate was 2.5bps, -0.7bp QoQ.

• On corporate services, TIGR participated in 13 US and HK IPOs (vs 12 in 2Q24). It added 18 new ESOP clients (vs. 22 added in 2Q24) taking the total to 597.

• Net revenue mix shows a 46% contribution from net commissions in 3Q24 (vs 44% in 2Q24), 43% from net interest income (vs 47% in 2Q24) and 11% from other income (eg, IPO underwriting) (vs 9% in 2Q24).

We have a BUY rating with a TP of US$7.58, based on a 2025E target P/E of 20.0x. Key risks: weak stock market sentiment, slower-than-expected market expansion, intensifying competition, lower-than expected MFSL demand, and tighter regulations.