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Oneconnect Financial Technology Co Ltd (OCFT)
:OCFT
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OneConnect Financial Technology
(NYSE:OCFT)
Rating:47Neutral
Price Target:―
OneConnect Financial Technology (OCFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$290.64M
Dividend YieldN/A
Average Volume (3M)51.69K
Price to Earnings (P/E)50.3
Beta (1Y)0.98
Revenue Growth-45.80%
EPS Growth-13.09%
CountryUS
Employees1,937
SectorTechnology
Sector Strength95
IndustrySoftware - Application
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding38,999,355
10 Day Avg. Volume49,201
30 Day Avg. Volume51,692
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.75
Price to Sales (P/S)0.00
P/FCF Ratio-5.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
OneConnect Financial Technology Business Overview & Revenue Model
Company DescriptionOneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It offers digital retail banking, digital commercial banking, digital auto insurance and life insurance, and artificial intelligence customer services, as well as sales management, risk management, and operation support services. The company also operates gamma core banking system, a customer centric solution; digitalized management platform that offers digital infrastructure for financial institutions to manage various aspects of their business, including data, smart operation, comprehensive risk, and asset and liability management, as well as accounting, personnel, and office management; Gamma FinCloud, an open PaaS and IaaS platform for ready-to-integrate financial technology components; and Blockchain network-as-a-service. In addition, it operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; and offers asset management and consulting services. The company serves customers in the financial services industry, including banking, insurance, and other financial institutions. It has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyOneConnect Financial Technology generates revenue primarily through its technology-as-a-service platform, offering subscription-based services to financial institutions. The company's key revenue streams include software licensing fees, implementation fees, and ongoing maintenance and support services. OneConnect collaborates with a variety of financial institutions, including major banks and insurance companies, which enables it to scale its services and drive growth. Additionally, its strategic partnerships with leading financial service providers and its parent company, Ping An Group, contribute to expanding its market reach and customer base, thereby enhancing its revenue potential.
OneConnect Financial Technology Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q3-2024)
| % Change Since: 3.50%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture. While there are significant achievements in reducing net loss and growing overseas revenue, there are also considerable challenges, particularly the sharp decline in overall revenue and gross margin. The sentiment leans towards a cautious optimism due to achievements despite the setbacks.Q3-2024 Updates
Positive Updates
Significant Reduction in Net Loss
Net loss from continuing operations attributable to shareholders improved to RMB 30 million from RMB 51 million in the same period last year, a significant year-on-year decrease of 41.9%.
Overseas Revenue Growth
Revenue from third-party overseas customers increased by 23.4% year-on-year in the first 9 months of 2024.
Recognition and Awards
In the third quarter of 2024, OneConnect won 4 awards from third-party institutions and renowned media outlets, totaling 318 awards, which reflects social and industry recognition of their products and technical strength.
Negative Updates
Decrease in Overall Revenue
Revenue decreased by 48.3% compared to the same period last year, primarily due to the strategic decision to phase out the cloud service business.
Reduction in Gross Margin
Gross margin of continuing operations was 32.7% compared to 36.6% in the prior year, with a non-IFRS gross margin of continuing operations at 35.6% compared to 40.7% in the prior year.
Increased Net Margin Loss
Net margin of continuing operations to shareholders was minus 7.1% compared to minus 6.3% during the same period last year.
Company Guidance
During OneConnect's Q3 2024 earnings call, the company provided several metrics indicating its financial performance and strategic focus. The company's net loss from continuing operations attributable to shareholders improved to RMB 30 million, marking a 41.9% reduction from RMB 51 million in the same period last year. Revenue decreased by 48.3% year-over-year to RMB 417 million, primarily due to the strategic phase-out of its cloud service business. However, revenue from third-party overseas customers grew by 23.4% in the first nine months, highlighting strong international expansion. Gross margin decreased to 32.7% from 36.6% in the prior year, attributed to reduced economies of scale. Additionally, R&D expenses dropped significantly to RMB 70 million from RMB 230 million, reflecting a focus on optimizing business structure and managing projects with a return on investment-driven approach. The company emphasized ongoing efforts to enhance product offerings, focus on cost control, and expand overseas markets to achieve midterm profitability.OneConnect Financial Technology Financial Statement Overview
Summary
OneConnect Financial Technology faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The balance sheet remains relatively stable with low leverage, but the inability to generate profits or positive cash flow highlights the need for strategic changes to improve operational efficiency and financial performance.Income Statement
OneConnect Financial Technology has experienced declining revenues and negative profitability over the past years. The company has posted consistent net losses, with the most recent year showing a net profit margin of -20.44%. Gross profit margins have also declined, indicating struggles in maintaining cost efficiency. Despite some improvement in EBIT and EBITDA margins, they remain negative, highlighting ongoing operational challenges.35
Negative
Balance Sheet
The balance sheet shows a strong equity base with an equity ratio of 64.49% in the latest year, suggesting financial stability. However, the company has a history of high liabilities relative to revenue, and a debt-to-equity ratio of 0.02 indicates limited leverage, which is a positive aspect. Yet, the consistent net losses have impaired return on equity, which remains negative, reflecting inefficiencies in generating shareholder value.45
Neutral
Cash Flow
The cash flow situation is concerning, with the company consistently generating negative operating cash flows. The free cash flow is also negative, indicating cash burn issues. The ratio of operating cash flow to net income is not favorable, suggesting difficulties in converting earnings into cash. Despite some inflows from investing activities, the overall cash flow position is weak.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.25B | 3.67B | 4.46B | 4.13B | 3.31B |
| Gross Profit | 804.50M | 1.35B | 1.64B | 1.44B | 1.24B |
| EBITDA | -80.91M | -140.84M | -673.58M | -929.12M | -1.27B |
| Net Income | -459.68M | -362.71M | -928.03M | -1.33B | -1.41B |
Balance Sheet | |||||
| Total Assets | 3.97B | 8.07B | 8.88B | 9.34B | 10.89B |
| Cash, Cash Equivalents and Short-Term Investments | 2.40B | 3.16B | 3.83B | 3.96B | 5.12B |
| Total Debt | 43.56M | 357.33M | 333.62M | 815.26M | 2.28B |
| Total Liabilities | 1.46B | 5.12B | 5.60B | 5.51B | 5.60B |
| Stockholders Equity | 2.56B | 2.97B | 3.29B | 3.79B | 5.20B |
Cash Flow | |||||
| Free Cash Flow | -304.27M | -685.93M | -813.93M | -532.35M | -969.33M |
| Operating Cash Flow | -276.85M | -648.46M | -745.98M | -404.33M | -704.14M |
| Investing Cash Flow | 1.11B | 318.63M | 1.87B | 388.44M | 1.32B |
| Financing Cash Flow | -282.25M | -213.60M | -694.07M | -1.61B | 1.53B |
OneConnect Financial Technology Technical Analysis
Positive
7.40
Price Trends
7.27
Positive
6.83
Positive
4.91
Positive
Market Momentum
0.06
Positive
57.74
Neutral
39.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFT, the sentiment is Positive. The current price of 7.4 is below the 20-day moving average (MA) of 7.44, above the 50-day MA of 7.27, and above the 200-day MA of 4.91, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 39.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCFT.
OneConnect Financial Technology Risk Analysis
OneConnect Financial Technology disclosed 80 risk factors in its most recent earnings report. OneConnect Financial Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OneConnect Financial Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $340.06M | 1.89 | -10.56% | 7.62% | -11.07% | 953.01% | |
58 Neutral | $357.21M | ― | -5.62% | ― | -3.34% | 56.44% | |
51 Neutral | $205.51M | ― | -30.28% | ― | 14.78% | 16.74% | |
50 Neutral | $215.77M | ― | -24.47% | ― | -8.39% | 7.79% | |
50 Neutral | C$3.12B | 2.45 | -63.12% | 2.59% | 4.51% | -5.95% | |
48 Neutral | $290.98M | ― | -104.69% | ― | -1.64% | 9.99% | |
47 Neutral | $290.64M | 50.30 | -24.43% | ― | -45.80% | -13.09% |
* Technology Sector Average
Performance Comparison
OCFT
OneConnect Financial Technology
7.40
5.91
396.64%
API
Agora
3.88
1.52
64.41%
MKTW
MarketWise
19.68
-0.08
-0.40%
NRDY
Nerdy
1.54
-0.13
-7.78%
FRGE
Forge Global Holdings
16.82
-3.73
-18.15%
ONTF
ON24
5.02
-1.17
-18.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.