Earnings Review and Free Research Report: Noah Holdings’ Revenue Gained 8.5%; Adjusted Net Income Climbed 14.4%

Research Desk Line-up: U.S. Global Investors Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 18, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Noah Holdings Ltd (NYSE: NOAH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NOAH, following the Company’s disclosure of its second quarter fiscal 2017 financial results on August 28, 2017. The wealth management firm provided outlook for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Asset Management industry. Pro-TD has currently selected U.S. Global Investors, Inc. (NASDAQ: GROW) for due-diligence and potential coverage as the Company reported on September 12, 2017, its financial results for FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on U.S. Global Investors when we publish it.

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Earnings Reviewed

Noah Holdings’ net revenues for Q2 2017 were RMB707.3 million (US$104.3 million), reflecting an 8.5% increase from RMB651.7 million in Q2 2016, primarily driven by increased recurring service fee revenues.

During Q2 2017, Noah Holdings’ operating costs and expenses were RMB483.1 million (US$71.3 million), a 5.6% increase on a y-o-y basis. The Company’s operating margin for the reported quarter was 31.7%, an increase from 29.8% in the year-ago same period, primarily due to improved operating margin for the asset management business and reduced operating loss of the Internet financial service business.

Noah Holdings’ income from equity in affiliates was RMB23.3 million (US$3.4 million) for Q2 2017, a 154.4% increase on a y-o-y basis. The increase was mainly due to the growth of net asset value of the Company’s investments in the funds managed by Gopher as a general partner.

Net income attributable to Noah Holdings’ shareholders was RMB207.04 million (US$30.5 million) for Q2 2017, reflecting a 13.6% increase compared to net income of RMB182.26 million in Q2 2016. The Company’s non-GAAP net income attributable to Noah Holdings’ shareholders for the reported quarter was RMB226.5 million (US$33.4 million), a 14.4% increase from the year-ago corresponding period. For Q2 2017, Noah Holdings’ net income per ADS was RMB3.52 ($0.52) versus RMB 3.10 in the year-ago comparable period.

Operational Updates

Wealth Management Business – Noah Holdings’ Wealth Management business had a total number of registered clients as of June 30, 2017, of 164,728, a 43.4% increase from June 30, 2016. The segment’s total number of active clients during Q2 2017 was 4,484, a 9.0% decrease from June 30, 2016. The aggregate value of wealth management products distributed during the reported quarter was RMB33.0 billion (US$4.9 billion), an 18.8% increase from Q2 2016.

In Q2 2017, the segment’s average transaction value per client was RMB7.4 million (US$1.1 million), reflecting a 30.5% growth on a y-o-y basis. The Wealth Management Business’ coverage network included 205 branches and sub-branches covering 76 cities as of June 30, 2017, up from 199 branches and sub-branches covering 74 cities as of March 31, 2017, and 175 branches and sub-branches covering 68 cities as of June 30, 2016. The segment’s number of relationship managers was 1,259 as of June 30, 2017, relatively flat from March 31, 2017, and up 15.2% from June 30, 2016.

Asset Management Business – Gopher Asset Management’s total assets under management as of June 30, 2017, were RMB138.7 billion (US$20.5 billion), a 7.0% increase from March 31, 2017, and a 37.1% increase from June 30, 2016.

Internet Financial Service Business – During Q2 2017, the aggregate value of financial products distributed by Noah Holdings’ Internet wealth management platform was RMB6.2 billion (US$0.9 billion), a 7.3% increase on a y-o-y basis. A total number of clients through the Company’s Internet wealth management platform as of June 30, 2017, was 438,981, up from 425,708 and 324,918 as of March 31, 2017, and June 30, 2016, respectively.

Balance Sheet and Cash Flow

As of June 30, 2017, Noah Holdings had RMB2.00 billion (US$295.5 million) in cash and cash equivalents compared with RMB2.61 billion as of March 31, 2017, and RMB1.40 billion as of June 30, 2016.

During Q2 2017, net cash inflow from the Company’s operating activities was RMB72.8 million (US$10.7 million) compared to income from operations of RMB224.3 million for Q2 2016. Net cash outflow from Noah Holdings’ investing activities was RMB671.2 million (US$99.0 million) during Q2 2017, primarily due to increases in short-term and long-term investments to improve cash usage and capital management. Net cash inflow from the Company’s financing activities was RMB4.2 million (US$0.6 million) in Q2 2017.

On July 8, 2016, Noah Holdings’ Board of Directors authorized a share repurchase program of up to US$50 million worth of its issued and outstanding ADSs over the course of one year. As of June 30, 2017, the Company had repurchased 224,775 ADSs for approximately US$5.1 million under this program, inclusive of transaction charges, at an average effective price of US$22.76.

Outlook

The Company forecasts that non-GAAP net income attributable to Noah Holdings’ shareholders for FY17 will be in the range of RMB825 million to RMB860 million; an increase of 14.1% to 18.9% compared to FY16.

Stock Performance

On Friday, September 15, 2017, the stock closed the trading session at $28.90, slightly falling 0.34% from its previous closing price of $29.00. A total volume of 342.86 thousand shares have exchanged hands, which was higher than the 3-month average volume of 228.77 thousand shares. Noah’s stock price advanced 8.12% in the last three months, 5.90% in the past six months, and 6.92% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 31.78%. The stock is trading at a PE ratio of 17.93. At Friday’s closing price, the stock’s net capitalization stands at $1.64 billion.

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