China-based Noah Holdings Q3 net income rises

Noah Holdings reported a 62.6% increase in Q3 net income, driven by higher investment values, despite a 7.4% drop in net revenue due to reduced one-time commissions. The company canceled 6.76 million treasury shares and plans global expansion with a U.S. broker-dealer license. AI integration aims to enhance client acquisition and efficiency. Analysts rate the stock as "buy," with a 12-month price target of $13.55, 23% above its current price.

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Overview

Wealth management services provider Noah Holdings Q3 net revenue falls 7.4% yr/yr, primarily due to reduced one-time commissions
Net income for Q3 rises 62.6% yr/yr, driven by increased investment values
Company cancelled 6.76 mln treasury shares, reflecting strategic capital management

Outlook

Noah Holdings plans to enhance global expansion with a U.S. broker-dealer license
Company integrating AI to improve client acquisition and operational efficiency
Noah Holdings emphasizes maintaining a strong balance sheet for future investments

Result Drivers

INVESTMENT VALUE INCREASE - Net income rose significantly due to increased fair value of investments in affiliates
PRIVATE SECONDARY PRODUCTS - Distribution of private secondary products increased by 66.9%, boosting investment product value
OVERSEAS ASSET MANAGEMENT DECLINE - Overseas asset management revenue decreased due to lower performance-based income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 RMB

Revenue 632.9

mln

Q3 RMB 3.26

Adjusted

Net

income

per ADS

Q3 Net RMB

Income 218.5

mln

Q3 RMB

Income 171.9

from mln

Operatio

Analyst Coverage

The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 3 “strong buy” or “buy”, 1 “hold” and 1 “sell” or “strong sell”
The average consensus recommendation for the investment management & fund operators peer group is “buy”
Wall Street’s median 12-month price target for Noah Holdings Ltd is $13.55, about 23% above its November 24 closing price of $10.44
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)