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SHANGHAI - Noah Holdings Limited (NYSE: NOAH and HKEX: 6686), a wealth management service provider trading at an attractive Price-to-Book ratio of 0.43, has announced substantial progress in its global expansion and operational transformation for the year 2024. Amidst regulatory challenges and market volatility, the company has successfully restructured its distribution channels and enhanced its compliance framework, leading to significant growth in both domestic and overseas markets. According to InvestingPro analysis, Noah Holdings appears undervalued based on its Fair Value estimates, suggesting potential upside for investors.
In 2024, Noah’s domestic restructuring led to the creation of independent licensed business units and consolidation of operations into core cities, improving online engagement capabilities. The company reported a 200% sequential increase in domestic transaction value for RMB private secondary products during the fourth quarter of 2024. With a strong current ratio of 4.53 and minimal debt-to-equity of 0.01, InvestingPro data reveals Noah’s robust financial health, positioning it well for continued expansion.
The firm’s international efforts resulted in a 31% year-over-year increase in overseas transaction value, reaching US$4.3 billion, and an 18% increase in overseas assets under management, totaling US$5.8 billion. Additionally, overseas assets under administration rose by 5% year-over-year to US$8.7 billion.
Noah’s strategic expansion included the establishment of a team of 138 overseas relationship managers and the launch of three new brands: ARK Wealth Management, Olive Asset Management, and Glory Family Heritage. Pilot programs were initiated in Canada and Southeast Asia, with booking centers set up in key financial hubs.
Reflecting on the company’s performance, Noah’s Chairwoman, Ms. Jingbo Wang, emphasized the resilience of the wealth management industry and the company’s commitment to serving global Chinese high-net-worth individuals (HNWIs). She outlined the strategic priorities for 2025, focusing on expanding the relationship manager team, serving existing and new clients, and strengthening global infrastructure with technological and AI investments.
The company’s financial health was also highlighted, with a non-GAAP net income of RMB 550 million in 2024, leading the Board to approve dividends equivalent to 100% of the full-year non-GAAP net income. This includes an annual dividend of RMB275 million (US$37.7 million) and a special dividend of the same amount, alongside a US$50 million share repurchase program. Notable for income investors, InvestingPro data shows Noah Holdings offers an impressive dividend yield of 11.79%, significantly above its 5-year average of 2%. The company maintains strong profitability with a diluted EPS of $0.92 and a healthy gross profit margin of 48.12%.
Noah Holdings remains committed to its client-centric philosophy and delivering sustained returns to shareholders. The company’s progress and strategic initiatives are based on a press release statement from Noah Holdings Limited.
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