Noah Holdings Reports Higher Income, Revenue
Noah Holdings Ltd. (NYSE: NOAH), which provides wealth and asset management services to high net worth clients in China, reported late today that its income attributable to shareholders rose nearly 24 percent to $42.8 million, or 71 cents per fully diluted share, compared with $34.6 million, or 59 cents per share, a year ago.
Revenue during the three months ended March 31 rose 17 percent to $132.5 million from $113.7 million.
Shares in Noah, which are up 128 percent over the past year, closed Tuesday before the earnings announcement at $62.39 per share, down 4 percent. The stock was up slightly in after-hours trading.
"The first quarter of 2018 represents another solid start for the whole year," said Kenny Lam, Group President of Noah, in a statement. "We will continue to develop our investment and comprehensive service capabilities in order to better serve the evolving demands of high net worth Chinese clients in China and globally."
Noah Holdings said in its primary wealth management business net revenue one-time commissions rose nearly 8 percent to $50.4 million during the quarter. Net revenue from recurring service fees reached $38.8 million, representing a 22 percent increase.
In addition, the Shanghai-based company reported that revenue in its asset management business also increased. Net revenue from recurring service fees were $24.4 million, a 22 percent increase, while revenue from performance-based income jumped to $6.3 million compared with just $112,000 a year ago.
Looking ahead, Noah Holdings said it expected non-GAAP net income attributable to Noah shareholders for the full year to be between $159.5 million and $167.5 million, an increase of 16.7 percent to 22.6 percent compared with last year.
Noah Holdings, through its Gopher Asset Management unit, had assets under management of $25 billion as of March 31. The company, which had nearly 200,000 clients at quarter-end, delivers services through 1,386 relationship managers across 263 branches and sub-branches in 81 cities in mainland China, as well as through offices in Hong Kong, Taiwan, the U.S., Canada, and Australia.