JP - Jupai Will Struggle To Replace Lost Clients
Headline results
Q2 was disappointing for Chinese IFAs. First, Noah (NOAH) (my report here) and now Jupai (JP). Revenues have been treading water for five quarters now, while profit margins remain relatively fixed. However, given the changing client dynamics at Jupai (discussed below), I don’t believe this will be sustainable for much longer.
Revenues and profit margins. Units: RMB millions. Source: Jupai investor relations
The broad selloff after the earnings release was focused on the increasingly challenging environment for Chinese IFAs. However, Noah and Jupai have traditionally occupied different