Key insights
- The author discusses Up Fintech (TIGR), a brokerage firm, highlighting its recent stock decline due to regulatory fines in China. Despite the fines and reduced China business, TIGR's revenue has grown significantly, with most revenue coming from New Zealand, the US, and Singapore. The author believes the market has overreacted, presenting a buying opportunity given the stock's low P/E ratio and discount to book value. However, the impact on US equities is minimal.
Hey all,
If anyone's been following along with the news on TIGR lately, their stock has been taking a beating due to news that the China Securities Regulatory Commission fined $45m in administrative penalties and also an additional $15m in confiscated income that they had earned conducting unlicensed cross-border activity in mainland China.
Before the news, their stock has already been on a decline, but recently dropped past book value. They're currently selling at a market cap of $775m as of EOD Friday, and their B/V is $865m. It would be fair to say that securing a position at this price would provide a discount that far offsets the fine that they're imposed with.
TIGR has had trouble with China since 2022. Between then and now, they have significantly reduce their business in China. In fact, 87% of their revenue as of 2025 comes from New Zealand, the United States, and Singapore. Their HQ is based in Singapore and they are licensed and regulated under the Monetary Authority of Singapore
Their revenue has also significantly exploded since then, from 2023 to 2025 their top line was $272m, $391m, $612m respectively and all of which trickled down to the bottom line EPS, as they have improved operating margins, offset by some stock dilution. And at this valuation, they're selling at a P/E of 4.
Assuming they lost 10%~ of their revenue due to halting their trading activities in China, I think that the market is definitely overreacted to the current events facing the company. Factoring the $60m fine and 10% loss in commission/loan revenue, the significant discount that this stock is selling at would serve as a good entry point into a compounding machine looking past this event.
I had initially secured a position in TIGR earlier this month before these events played off. It didn't feel good to see my position immediately drop 25% in value, but I took the chance to snag some more shares at these prices Friday.
Also take a moment to appreciate their adorable mascot Tygo.