Chinese financial services firm Noah Holdings Q2 net income jumps

Overview

• Noah's Q2 net revenue rises 2.2% yr/yr, driven by private secondary products

• Net income attributable to shareholders surges 79% yr/yr, aided by fund value increase

• Operational income up 20.2% yr/yr, reflecting reduced one-off expenses

Outlook

• Company remains focused on global expansion amid economic uncertainties

• No specific guidance provided for future quarters or full year in press release

Result Drivers

• PRIVATE SECONDARY PRODUCTS - Increased distribution of private secondary products drove a 2.2% rise in net revenues

• OVERSEAS INSURANCE - Significant growth in overseas insurance services contributed to a 90.9% increase in net revenues from this segment

• FUND VALUE INCREASE - Surge in net income attributed to an increase in the fair value of funds managed by Gopher

Key Details

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 $12.20, about 1.1% above its August 27 closing price of $12.33

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn70Vy8sa