OneConnect Financial Technology (OCFT) AI Stock Analysis

• Market Cap: $307.81M
• Dividend Yield: N/A
• Average Volume (3M): 18.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -48.61%
• EPS Growth: -2291.48%
• Country: US
• Employees: 1,937
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 38,999,355
• 10 Day Avg. Volume: 15,901
• 30 Day Avg. Volume: 18,936
• PEG Ratio: -0.05
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -2.12
• Enterprise Value/Market Cap: -0.17
• Enterprise Value/Revenue: -0.03
• Enterprise Value/Gross Profit: -0.11
• Enterprise Value/Ebitda: 0.22
• 1Y Price Target: $7.98
• Price Target Upside: 0.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $7.50 ▼(-5.18% Downside)

The overall stock score of 47 reflects significant financial challenges faced by OneConnect Financial Technology, with persistent losses and negative cash flows being the most impactful factors. While technical analysis shows some positive trends, the negative valuation metrics further weigh down the score. The absence of earnings call and corporate events data means these factors did not influence the score.

OneConnect Financial Technology Business Overview & Revenue Model

Company Description

OneConnect 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 Money

OneConnect generates revenue through multiple streams, primarily by providing software and technology solutions to financial institutions. The company charges its clients through a subscription model for access to its technology platform and services, which may include fees for implementation, maintenance, and ongoing support. Additionally, OCFT earns revenue from transaction-based fees related to its financial services solutions, as well as from consulting and advisory services offered to clients seeking to optimize their operations. Strategic partnerships with major financial institutions and technology providers further enhance its market reach and contribute to revenue growth, as these alliances often lead to joint ventures and collaborative projects that expand OCFT's service offerings.

OneConnect Financial Technology Financial Statement Overview

Summary

OneConnect Financial Technology faces significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reflects limited leverage but negative returns on equity. Cash flow analysis reveals negative cash generation, raising liquidity concerns. The company needs to address its profitability and cash flow issues to improve its financial health and stability.

Income Statement

The income statement reveals a concerning trend with declining revenues and persistent losses. The TTM data shows a significant revenue decline of 13.69% and a net profit margin of -41.46%, indicating substantial challenges in achieving profitability. The gross profit margin has decreased from previous years, reflecting pressure on cost management. Overall, the company faces difficulties in reversing its negative growth trajectory and improving profitability.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.008, indicating limited leverage and potential financial stability. However, the return on equity is negative, reflecting ongoing losses and inefficient use of equity. The equity ratio is moderate, suggesting a balanced capital structure, but the company's inability to generate positive returns remains a concern.

Cash Flow

Cash flow analysis highlights significant challenges with negative operating and free cash flows. The TTM data shows a free cash flow growth rate of -45.89%, indicating worsening cash generation. The operating cash flow to net income ratio is negative, reflecting poor cash conversion efficiency. Despite a free cash flow to net income ratio above 1, the overall cash flow position is weak, raising concerns about liquidity and sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.63B	2.25B	3.67B	4.46B	4.13B	3.31B
Gross Profit	487.88M	804.50M	1.35B	1.64B	1.44B	1.24B
EBITDA	-245.70M	-80.91M	-140.84M	-673.58M	-929.12M	-1.73B
Net Income	-677.19M	-459.68M	-362.71M	-872.27M	-1.28B	-1.35B
Balance Sheet
Total Assets	3.73B	3.97B	8.07B	8.88B	9.34B	10.89B
Cash, Cash Equivalents and Short-Term Investments	1.47B	2.40B	3.16B	3.83B	3.96B	5.12B
Total Debt	20.66M	43.56M	357.33M	469.97M	970.15M	2.42B
Total Liabilities	1.32B	1.46B	5.12B	5.60B	5.51B	5.60B
Stockholders Equity	2.47B	2.56B	2.97B	3.29B	3.79B	5.20B
Cash Flow
Free Cash Flow	-192.19M	-304.27M	-685.93M	-813.93M	-532.35M	-969.33M
Operating Cash Flow	-188.66M	-276.85M	-648.46M	-745.98M	-404.33M	-704.14M
Investing Cash Flow	-707.43M	1.11B	318.63M	1.87B	388.44M	1.32B
Financing Cash Flow	-168.02M	-282.25M	-213.60M	-694.07M	-1.61B	1.53B

OneConnect Financial Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.91 is above the 20-day moving average (MA) of 7.86, above the 50-day MA of 7.59, and above the 200-day MA of 6.78, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCFT.

OneConnect Financial Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKTW	66 Neutral	$259.03M	1.55	―	13.01%	-19.17%	308.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FRGE	57 Neutral	$606.80M	―	-28.65%	―	16.40%	22.80%
ONTF	54 Neutral	$226.63M	―	-20.20%	―	-6.23%	28.57%
API	53 Neutral	$302.97M	―	-3.84%	―	-3.60%	48.15%
NRDY	48 Neutral	$159.27M	―	-120.79%	―	-9.86%	0.87%
OCFT	47 Neutral	$307.81M	-3.06	-24.21%	―	-48.61%	-2291.48%

OneConnect Financial Technology Corporate Events

OneConnect Announces Expected Trading Halt Amid Privatization Plans

OneConnect Financial Technology Co., Ltd. has announced an expected trading halt of its American Depositary Shares (ADSs) on the New York Stock Exchange (NYSE) on October 30, 2025. This development is part of a proposal to privatize the company through a scheme of arrangement, which will make OneConnect an indirect wholly-owned subsidiary of Ping An Group. The company plans to hold a Court Meeting and an Extraordinary General Meeting on October 28, 2025, to seek approval for the scheme. If approved, the trading of the company’s ADSs will cease on October 29, 2025, and the scheme is expected to become effective in November 2025.

OneConnect Financial Technology Reports Decline in 2025 Interim Results Amid Market Challenges

OneConnect Financial Technology Co., Ltd. released its 2025 Interim Report, revealing a significant decline in financial performance for the first half of the year. Revenue from continuing operations decreased by 43.4% compared to the same period in 2024, with a gross margin drop from 37.1% to 26.1%. The company attributes these declines to macroeconomic challenges and reduced IT budgets among its major clients, impacting its growth and profitability. Despite these challenges, OneConnect continues to focus on its long-term strategy of reducing revenue concentration from the Ping An Group and expanding its third-party business.