Noah Holdings Ltd (NOAH) Q3 2024 Earnings Call Highlights: Overseas Expansion Drives Revenue ...

In This Article:

  • Total Revenue: RMB 684 million, a decrease of 8.8% year on year, but an increase of 11% sequentially.

  • Overseas Revenue: RMB 377 million, an increase of 28.9% year on year and 35.3% sequentially, accounting for 55.1% of total revenue.

  • Net Income: Non-GAAP net income increased to RMB 150 million sequentially.

  • Operating Profit: RMB 241 million, with an operating margin of 35%.

  • US Dollar AUA: USD 8.7 billion, a 5.7% year on year increase.

  • Transaction Value: USD 1.1 billion, an increase of 15.8% year on year.

  • Overseas Active Clients: 3,139, an increase of 37.4% year on year.

  • Cash and Cash Equivalents: RMB 3.4 billion, with total cash reserves of RMB 4.8 billion.

  • Dividend Payout: RMB 1 billion earlier this year.

  • Share Repurchase Program: USD 50 million announced.

Release Date: November 27, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Noah Holdings Ltd (NYSE:NOAH) reported a sequential increase in total revenues by 11%, driven by a 28.9% increase in overseas revenues.

  • The company has successfully expanded its international presence, with overseas revenues accounting for over 50% of the group's total revenue for the first time.

  • Noah Holdings Ltd (NYSE:NOAH) launched several new products tailored to key client segments, contributing to a 35.3% sequential increase in overseas revenues.

  • The company has seen significant growth in its overseas client base, with a 20.9% year-on-year increase in registered clients.

  • Noah Holdings Ltd (NYSE:NOAH) has maintained a strong liquidity position with total cash reserves of around RMB 4.8 billion, despite a significant dividend payout earlier in the year.

Negative Points

  • Total revenues decreased by 8.8% year-on-year, primarily due to a 32.6% decline in revenues from mainland China.

  • The domestic market remains under pressure, with net revenues from mainland China decreasing by 32.6% year-on-year.

  • Recurring service fees declined by 13.8% year-on-year, reflecting challenges in maintaining consistent revenue streams.

  • The company experienced a foreign exchange loss of RMB 44 million due to the depreciation of the US dollar against the RMB.

  • Revenue from domestic insurance products saw a significant decline, with onshore brokerage revenue decreasing by 89.9% year-on-year.

Q & A Highlights

Q: How is Noah Holdings participating in the rising sentiment of the equity market, and how does it impact revenue and profitability? A: Zhe Yin, CEO, explained that the recent policy changes and stock market rebound have not significantly impacted third-quarter results. While there is increased trading activity among mainland China clients, Noah Holdings maintains a long-term allocation strategy, advising clients to invest globally using QD I and QD LP products. The company has enhanced its product offerings but remains focused on long-term investment strategies.