Noah Holdings Ltd Adr (NOAH)

[KinGSolomonsPOOLs]

Shalom sonny, well IMHO I think it's only the beginning for NOAH, most of the high net-worth individuals and families in China have historically made their own decisions pertaining to managing their wealth. But in this present dispensation and era of time I think the younger wealthy X/Y generation of China would probably end up going the smarter route to having the more experienced wealth management of NOAH assist in handling their assets.


International Leaders
Wealth Management Is Chinese IPO's Niche

By DONALD H. GOLD, INVESTOR'S BUSINESS DAILY Posted 11/10/2010 06:16 PM ET

http://www.investors.com/StockResearch/Quotes/Nyse-Noah-Holdings-Ltd-Ads-NOAH.aspx


China's economic miracle proves fertile ground for the growth of millionaires. Wealth is growing at almost all levels of that country's economic ladder. But, like everywhere else, the wealthiest need to pay special attention to their portfolios.

Noah Holdings (NOAH) — which went public on the NYSE Wednesday — caters to China's growing population of millionaires with wealth-management products. Its menu includes fixed-income, private equity and securities investment products, all targeting high-net-worth individuals.

In its SEC filing, Noah says it's "the leading independent service provider focusing on distributing wealth management products to the high net worth population in China."

"We believe," it continues, "that we have established our brand among China's high net worth population as a symbol of independent, personalized and value-added wealth management services and sophisticated product choices."

Noah Holdings traded 9.3 million shares on its first day. On Tuesday, the company sold 8.4 million American depositary shares for 12 each, better than its estimated range of 9 to 11.

Noah closed Wednesday at 15.99, 33% above its issuing price.

Noah's revenue, just $3.2 million in 2007, leapt to $8.4 million in 2008 and $15 million in 2009. Through the first half of 2010, Noah had logged sales of $13.7 million.

The company earned 7 cents a share last year, compared with a 1-cent loss in 2008. Quarterly profit is still measured in a few pennies per share.

Noah's pretax margin last year came in at 29%.

So what's so special about a wealth-management firm? Is there anything new here?

Yes. As we've seen in a myriad of other stocks from a vast array of industries, China itself is what makes this stock a potential winner.

Everything in China is new, it seems. A slew of superstars from a wide array of Chinese industries have emerged, including wireless providers, carmakers, jewelers, coal miners, travel-reservation Web sites, a maker of corn alcohol and, of course, a wildly successful search engine.

Can Noah make a real landing among China's financial industry? Its profit record so far is scanty, and some key data, such as per-share cash flow, are not yet available. But sales growth suggests the company has a future.

Elsewhere, Chinese solar-power issue Trina Solar (TSL) fell 3% in average volume. The stock had been a market star until mid-October.

Trina, now threading around its 10-week moving average, is five weeks into the construction of what may prove to be a new base.