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OneConnect Financial Technology (OCFT)
NYSE:OCFT
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OneConnect Financial Technology
(NYSE:OCFT)
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Rating:47Neutral
Price Target:
$7.50
▼(-3.85% 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 (OCFT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$293.73M
Dividend YieldN/A
Average Volume (3M)18.94K
Price to Earnings (P/E)50.3
Beta (1Y)0.80
Revenue Growth-48.61%
EPS Growth-2291.48%
CountryUS
Employees1,937
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.30
Shares Outstanding38,999,355
10 Day Avg. Volume15,901
30 Day Avg. Volume18,936
Financial Highlights & Ratios
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-0.18
Enterprise Value/Revenue-0.03
Enterprise Value/Gross Profit-0.11
Enterprise Value/Ebitda0.21
Forecast
1Y Price Target
$7.98Price Target Upside2.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
OneConnect Financial Technology Business Overview & Revenue Model
Company DescriptionOneConnect Financial Technology (OCFT) is a leading technology-as-a-service platform that specializes in providing innovative financial solutions to financial institutions and enterprises. The company operates primarily in the fintech sector, offering a suite of services including artificial intelligence, big data analytics, and cloud computing solutions tailored for the banking, insurance, and asset management industries. OCFT aims to enhance the operational efficiency and risk management capabilities of its clients, enabling them to better serve their customers in an increasingly digital financial landscape.
How the Company Makes MoneyOneConnect 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 Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 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, including declining revenues, persistent losses, and negative cash flows. Despite a stable balance sheet with low leverage, the company's inability to generate profits or positive cash flow highlights the need for strategic changes.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 | 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 | -256.55M | -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
Positive
7.80
Price Trends
7.39
Positive
7.35
Positive
6.35
Positive
Market Momentum
0.08
Negative
71.96
Negative
85.73
Negative
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 7.8 is above the 20-day moving average (MA) of 7.55, above the 50-day MA of 7.39, and above the 200-day MA of 6.35, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 71.96 is Negative, neither overbought nor oversold. The STOCH value of 85.73 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $333.83M | ― | -3.84% | ― | -3.60% | 48.15% | |
51 Neutral | $232.26M | ― | -22.60% | ― | -6.88% | 15.83% | |
50 Neutral | $242.63M | 1.37 | ― | 11.55% | -17.17% | 497.89% | |
49 Neutral | $222.93M | ― | -28.14% | ― | 14.78% | 21.87% | |
48 Neutral | $213.67M | ― | -105.81% | ― | -10.85% | -15.09% | |
47 Neutral | $293.73M | 50.30 | -24.21% | ― | -48.61% | -2291.48% |
* Technology Sector Average
OCFT
OneConnect Financial Technology
7.77
5.15
196.56%
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FRGE
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OneConnect Financial Technology Corporate Events
OneConnect Announces Expected Trading Halt Amid Privatization Plans
Oct 20, 2025
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
Aug 27, 2025
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.
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.