NOAH.US 6686.HK
Founded in 2005 and listed in the U.S. in 2010, with a secondary listing in Hong Kong in 2022, Noah is shifting the focus of its asset management business to affluent investors and scaling back its emphasis on mainstream clients after getting caught up several years ago in a case involving fraudulent investment products.

The Latest: Noah Holdings Private Wealth and Asset Management Ltd. (NOAH.US; 6686.HK) announced Friday that its revenue fell by 19.2% to 650 million yuan ($89.7 million) in the first quarter, while its net profit decreased by 46.2% to 131 million yuan.

Looking Up: The company’s registered clients totaled 457,705 at the end of March, up 3.9% year-on-year, with overseas registered clients up 17.1% to 15,725.

Take Note: The company’s first-quarter operating margin was 18.7%, down 16 percentage points from 34.7% a year earlier, mainly due to a big drop in the operating margin for its wealth management business, which fell to 14.1% from 34.8% over the same period.

Digging Deeper: Founded in 2005 and listed in the U.S. in 2010, with a secondary listing in Hong Kong in 2022, Noah is shifting the focus of its asset management business to affluent investors and scaling back its emphasis on mainstream clients after getting caught up several years ago in a case involving fraudulent investment products. Despite being challenged in recent years by market volatility, the company’s revenue and profit performance rebounded last year, benefiting from strong distribution for its insurance products and an accelerating pace of its global expansion.

Market Reaction: Noah’s Hong Kong shares were largely unmoved in early Friday trade, and closed unchanged at HK$21 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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