Stock on Watch: Noah Holdings Limited (NOAH)

Company Profile:

Noah Holdings Limited is a wealth management service provider with a focus on global wealth investment and asset allocation services for high net worth individuals and enterprises in China. The Company also provides Internet finance services to clients in China. It provides direct access to China’s high net worth population. With 779 relationship managers in approximately 94 branch offices, its coverage network includes China’s regions where high net worth population is concentrated, including the Yangtze River Delta, the Pearl River Delta and the Bohai Rim. The Company serves three types of clients: high net worth individuals, enterprises affiliated with high net worth individuals, and wholesale clients. The Company operates through three segments: wealth management, asset management and Internet finance. Noah Holdings Limited was founded in 2005 and is headquartered in Shanghai, China.

Recent News:

Net revenues in the fourth quarter of 2015 were RMB573.7 million (US$88.6 million), a 47.5% increase from the corresponding period in 2014.

Net income attributable to Noah shareholders in the fourth quarter of 2015 was RMB83.5 million (US$12.9 million), a 7.9% decrease from the corresponding period in 2014.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NOAH’s strengths can be seen in its strong growth, great profitability and robust efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is in bull territory, which stands at 50.38 with positive bias. We rate Noah Holdings Limited (NOAH) a Strong BUY.