Noah's 3Q2024 Earnings Showcase Robust Overseas Growth

Rhea-AI Summary

Noah Holdings reported strong Q3 2024 financial results with net revenues of RMB 683.7 million (US$ 97.4 million), up 11.0% sequentially. Overseas revenues reached RMB 376.9 million (US$ 53.7 million), representing 55.1% of total revenues and growing 28.9% year-over-year. Operating income was RMB 240.8 million (US$ 34.3 million), with operating margin improving to 35.2%. The company expanded its overseas relationship manager team by 89.6% year-over-year to 146 members. Noah also announced new international brands: Ark Wealth Management, Olive Asset Management, and Glory Family Heritage, while maintaining its US$50 million share repurchase program.

Positive

• Net revenues increased 11.0% sequentially to RMB 683.7 million
• Overseas revenues grew 28.9% YoY and 35.3% sequentially
• Operating margin improved to 35.2%, up 13.5% sequentially
• 89.6% YoY growth in overseas relationship manager team
• Authorized US$50 million share repurchase program

Negative

• Operating income remained flat year-over-year

Insights

Financial Analyst

Noah Holdings delivered a strong quarter with notable overseas growth. RMB 683.7M in net revenues represents an 11.0% sequential increase, with overseas revenue reaching RMB 376.9M (55.1% of total). The 35.3% sequential growth in overseas business demonstrates successful international expansion.

Operating income of RMB 240.8M and improved margins (35.2%) reflect effective cost management. The announced $50M share buyback program signals management's confidence and commitment to shareholder returns. The expansion of overseas relationship managers by 89.6% YoY positions the company well for sustained growth in high-margin international markets.

The strategic focus on Mandarin-speaking high-net-worth individuals in key global markets presents a unique competitive advantage and untapped growth potential.

Market Research Analyst

Noah's strategic positioning in the underserved Mandarin-speaking high-net-worth segment across global markets represents a significant competitive moat. The rebranding initiative with Ark Wealth Management, Olive Asset Management and Glory Family Heritage strengthens their international identity and market presence.

The expansion into Southeast Asia, Japan, Canada, US and Europe targets key wealth hubs where Mandarin-speaking HNWIs are increasingly active. This geographic diversification reduces dependency on any single market while capitalizing on global wealth migration trends. The substantial investment in overseas relationship managers indicates strong commitment to capturing market share in these regions.

SHANGHAI, Nov. 27, 2024 /PRNewswire/ -- Noah Holdings Limited ("Noah" or "the Company") (NYSE: NOAH and HKEX: 6686), a leading and pioneer wealth management service provider offering comprehensive advisory services on global investment and asset allocation primarily for Mandarin-speaking high-net-worth investors, today announced its unaudited financial results for the third quarter of 2024.

The Company generated solid sequential growth in both overseas net revenues and operating income, highlighting the effectiveness of its international expansion. Noah unveiled its new brands to serve overseas Mandarin-speaking clients during the quarter, including its wealth management division, Ark Wealth Management; its asset management division, Olive Asset Management; and its comprehensive services division, Glory Family Heritage. Additionally, Noah remains committed to prioritizing shareholder interests and delivering sustained returns once the window opens for the US$50 million share repurchase program it announced at the end of August.

Financial Results Breakdown

In the third quarter of 2024, net revenues were RMB 683.7 million (US$ 97.4 million), an 11.0% sequential increase, driven primarily by growth in the Company's overseas business.

Net revenues from overseas were RMB 376.9 million (US$ 53.7 million), an increase of 28.9% year-over-year and 35.3% sequentially. Overseas revenues accounted for over 55.1% of net revenues during the quarter, underscoring Noah's expanding global presence and unique competitive advantage in serving Mandarin-speaking high-net-worth investors.

Income from operations was RMB 240.8 million (US$ 34.3 million), effectively flat when compared to the same period last year and a notable increase of 79.7% sequentially, primarily due to various cost control initiatives and ongoing efforts to optimize its corporate structure, service quality, and operational efficiency. Operating margin recovered to 35.2%, an increase of 13.5% sequentially.

Global Strategy Driving Sustainable Growth

In the third quarter, and in response to evolving macroeconomic conditions, Noah accelerated its overseas expansion by gradually rolling out wealth management services targeting key markets such as Southeast Asia, Japan, Canada, the United States, and Europe. The Company also deepened collaborations with leading global financial institutions, launching a series of innovative products and services, further boosting its global market competitiveness and influence.

This quarter, Noah also expanded its team of overseas relationship managers to 146, a significant 89.6% year-on-year increase. This growing team significantly strengthens its overseas professional service capabilities and lays a solid foundation for sustainable growth going forward.

Share Repurchase Program Reflects Confidence in the Future

In late August 2024, Noah Holdings' Board of Directors authorized a US$50 million share repurchase program, allowing the Company to buy back its American depository shares or ordinary shares over a two-year period. This underscores the Company's commitment to enhancing shareholder value and confidence in its long-term growth prospects. Share repurchases are expected to begin when the next buyback window opens.

"Noah's third quarter results highlight the progress our global expansion is making and our ability to adapt to evolving market dynamics," said Noah's CEO, Mr. Yin Zhe. "At the same time, we have been working to improve our overall global compliance framework and professional service capabilities. We believe the overseas wealth management needs of Mandarin-speaking clients remain inadequately addressed. In response, we continue to actively expand our international business by increasing the number of local branches, strengthening our team of overseas relationship managers, and enhancing our online services capabilities to improve the quality of our offerings. We believe our stock remains undervalued and does not fully reflect our growth prospects, robust balance sheet, and cash reserves, as well as the special bond with Mandarin-speaking high-net-worth investors around the world. This share buyback reflects our confidence in the future as we expand internationally and drive long-term sustainable growth going forward."

Outlook

Looking ahead, Noah remains committed to monitoring international market dynamics and evolving client needs while optimizing its global asset allocation strategies and service models. The Company will also continue to strengthen compliance and risk management capabilities to ensure steady business growth.

By fostering innovation and professional expertise, Noah aims to deliver comprehensive, high-quality wealth management services to global Mandarin-speaking high-net-worth clients, driving sustainable growth and maximizing long-term value.

Ms. Wang Jingbo, Noah's Co-Founder and Chairwoman, added, "Noah's future presents both opportunities and challenges. By adhering to our client-centric philosophy, we will continue refining our products and services to foster deeper client satisfaction and loyalty. At the same time, we will strengthen collaborations with leading global financial institutions, driving innovation and development to ensure Noah remains at the forefront of the global wealth management industry."

About Noah Holdings Limited

Noah Holdings Limited (NYSE: NOAH, HKEX: 6686) is a leading wealth management service provider in China, offering comprehensive global investment and asset allocation advisory services to high-net-worth investors.

Noah's wealth management business primarily distributes private equity, secondary market funds, mutual funds, and other products denominated in RMB and other currencies. Through its extensive global network, the Company provides tailored financial solutions and meets clients' international investment needs via offices in Hong Kong SAR, Taiwan region, Japan, New York, Silicon Valley, and Singapore.

Through its affiliate Gopher Asset Management, Noah manages private equity, public securities, real estate, multi-strategy, and other investments denominated in RMB and other currencies. Noah also offers additional services.

For more information, visit Noah's official website at ir.noahgroup.com.

Noah Holdings: in_communication@noahgroup.com

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SOURCE Noah Holdings Limited

FAQ

What was Noah Holdings (NOAH) revenue in Q3 2024?

Noah Holdings reported net revenues of RMB 683.7 million (US$ 97.4 million) in Q3 2024, representing an 11.0% sequential increase.

How much did Noah Holdings (NOAH) overseas revenue grow in Q3 2024?

Noah's overseas revenues grew 28.9% year-over-year and 35.3% sequentially to RMB 376.9 million (US$ 53.7 million), accounting for 55.1% of total net revenues.

What is the size of Noah Holdings (NOAH) share repurchase program announced in August 2024?

Noah Holdings announced a US$50 million share repurchase program in August 2024, valid for a two-year period.

What new brands did Noah Holdings (NOAH) launch in Q3 2024?

Noah launched three new brands: Ark Wealth Management for wealth management, Olive Asset Management for asset management, and Glory Family Heritage for comprehensive services.