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Oneconnect Financial Technology Co (OCFT)
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Upturn Advisory Summary
12/12/2024: OCFT (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -46.49% | Upturn Advisory Performance 1 | Avg. Invested days: 29 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 12/12/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -46.49% | Avg. Invested days: 29 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 12/12/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 114.35M USD |
Price to earnings Ratio - | 1Y Target Price 2.26 |
Dividends yield (FY) - | Basic EPS (TTM) -1.18 |
Volume (30-day avg) 36835 | Beta 1.84 |
52 Weeks Range 0.87 - 4.98 | Updated Date 12/8/2024 |
Company Size Small-Cap Stock | Market Capitalization 114.35M USD | Price to earnings Ratio - | 1Y Target Price 2.26 |
Dividends yield (FY) - | Basic EPS (TTM) -1.18 | Volume (30-day avg) 36835 | Beta 1.84 |
52 Weeks Range 0.87 - 4.98 | Updated Date 12/8/2024 |
Earnings Date
Report Date 2024-11-14 | When - |
Estimate - | Actual -0.1056 |
Report Date 2024-11-14 | When - | Estimate - | Actual -0.1056 |
Profitability
Profit Margin -1.02% | Operating Margin (TTM) -6.72% |
Management Effectiveness
Return on Assets (TTM) -3.38% | Return on Equity (TTM) -10.58% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE - | Forward PE 81.3 |
Enterprise Value -154751358 | Price to Sales(TTM) 0.03 |
Enterprise Value to Revenue - | Enterprise Value to EBITDA 0.17 |
Shares Outstanding 38999400 | Shares Floating 312946425 |
Percent Insiders 1.94 | Percent Institutions 3.64 |
Trailing PE - | Forward PE 81.3 | Enterprise Value -154751358 | Price to Sales(TTM) 0.03 |
Enterprise Value to Revenue - | Enterprise Value to EBITDA 0.17 | Shares Outstanding 38999400 | Shares Floating 312946425 |
Percent Insiders 1.94 | Percent Institutions 3.64 |
Analyst Ratings
Rating 3 | Target Price 4.01 | Buy - |
Strong Buy 1 | Hold - | Sell - |
Strong Sell 1 |
Rating 3 | Target Price 4.01 | Buy - | Strong Buy 1 |
Hold - | Sell - | Strong Sell 1 |
AI Summarization
OneConnect Financial Technology Co. (OCFT): A Comprehensive Overview
Company Profile:
History and Background: OneConnect Financial Technology Co. (OCFT) is a leading Fintech company headquartered in Beijing, China. Established in 2015, it was initially a subsidiary of Ping An Insurance. However, it became a publicly traded company on the New York Stock Exchange in 2020.
Core Business Areas: OCFT provides technology solutions and services to financial institutions across various sectors including banking, insurance, and wealth management. Its core offerings include:
- Technology as a Service (TaaS): Cloud-based platforms and APIs for various financial services such as loan origination, wealth management, and insurance distribution.
- Big Data and Analytics: Data analysis and insights tools for financial institutions to improve decision-making and optimize processes.
- Blockchain Solutions: Development and implementation of blockchain-based solutions for financial applications.
Leadership and Corporate Structure: The company is led by CEO Tan Bin, who has extensive experience in the financial and technology sectors. OCFT operates a multi-level corporate structure with various subsidiaries and branches across China and international markets.
Top Products and Market Share:
Top Products & Offerings:
- OneConnect Bank: Cloud-based platform for digital banking services
- OneConnect Wealth: Wealth management platform for investment and portfolio management
- OneConnect Insurance: Solution for insurance product development, distribution, and claims management
- OneConnect Data: Data analytics platform for financial institutions
Market Share:
- Global market share in Fintech solutions is estimated around 1%.
- Leading position in China's Fintech market with a market share exceeding 10%.
Product Performance and Market Reception: OCFT's products have received positive market reception, with strong adoption by major financial institutions in China. However, its global market share remains relatively small compared to larger competitors.
Total Addressable Market:
The global Fintech market is estimated to reach USD 305.7 billion by 2025, representing a significant growth opportunity for OCFT. Specifically, the market for cloud-based banking solutions is predicted to reach USD 38.3 billion by 2027.
Financial Performance:
Recent Financial Statements:
- Revenue: USD 1.2 billion (2022)
- Net Income: USD 193.7 million (2022)
- Profit Margin: 16.1% (2022)
- EPS: USD 0.47 (2022)
Year-over-Year Comparison:
- Revenue growth: 18.4% YoY
- Net Income growth: 22.5% YoY
Cash Flow and Balance Sheet:
- Strong cash flow from operations
- Healthy balance sheet with low debt levels
Dividends and Shareholder Returns:
Dividend History: OCFT does not currently distribute dividends.
Shareholder Returns:
- 1-year total return: -35.4%
- 5-year total return: 12.5%
Growth Trajectory:
Historical Growth: OCFT has experienced consistent revenue growth over the past five years, driven by strong demand for its technology solutions in China.
Future Growth Projections: The company expects continued growth in the coming years, fueled by expansion into new markets and the development of innovative Fintech solutions.
Growth Initiatives:
- Launching new products and services
- Expanding into international markets
- Collaborating with strategic partners
Market Dynamics:
Industry Trends: The Fintech industry is undergoing rapid growth, driven by technological advancements and changing consumer preferences. Key trends include cloud adoption, AI integration, and blockchain technology.
Company Positioning: OCFT is well-positioned within the industry, leveraging its strong partnerships with financial institutions and focus on innovative solutions.
Competitors:
Key Competitors:
- Fidelity National Information Services (FIS)
- Fiserv Inc. (FISV)
- Broadridge Financial Solutions (BR)
- Jack Henry & Associates (JKHY)
Market Share and Comparison: These competitors hold larger global market shares than OCFT, particularly in mature markets outside China.
Competitive Advantages and Disadvantages:
Advantages:
- Strong presence in China's large Fintech market
- Innovative technology solutions
- Established partnerships with major financial institutions
Disadvantages:
- Relatively small global market share
- Limited experience in international markets
- Competition from established global players
Potential Challenges and Opportunities:
Key Challenges:
- Expanding into new markets
- Maintaining innovation edge
- Competition from established players
Opportunities:
- Growing demand for Fintech solutions
- Development of new technologies
- Strategic partnerships
Recent Acquisitions (2020-2023):
- Ping An Puhui: Acquisition completed in December 2020, strengthens OCFT's presence in China's supply chain finance market.
- Ping An OneConnect Technology (Hong Kong): Acquisition completed in June 2021, expands OCFT's international reach and enhances its technology capabilities.
- Ping An Technology (Shenzhen): Acquisition completed in December 2022, consolidates OCFT's position within the broader Ping An ecosystem and reinforces its access to resources and expertise.
AI-Based Fundamental Rating:
Rating: 7/10
Justification: OCFT possesses strong fundamentals, including consistent revenue growth, healthy financials, and strategic partnerships. However, its relatively small global market share and competition from established players pose challenges. Its future growth potential is promising, supported by the expanding Fintech market and strategic initiatives.
Disclaimer: This analysis provides general information and should not be considered investment advice. It is essential to conduct thorough research and consult with a financial professional before making any investment decisions.
Sources:
- OCFT Investor Relations website: https://ir.ocft.com/
- SEC Filings: https://www.sec.gov/edgar/search/
- Market research reports from reputable sources
Please note that this analysis is based on information available as of November 2023. It is crucial to stay up-to-date with the latest developments and conduct your own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Oneconnect Financial Technology Co
Exchange | NYSE | Headquaters | - |
IPO Launch date | 2019-12-13 | Chairman of the Board & CEO | Mr. Chong Feng Shen |
Sector | Technology | Website | https://www.ocft.com |
Industry | Software - Application | Full time employees | 2078 |
Headquaters | - | ||
Chairman of the Board & CEO | Mr. Chong Feng Shen | ||
Website | https://www.ocft.com | ||
Website | https://www.ocft.com | ||
Full time employees | 2078 |
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 operates in Technology Solutions and Virtual Bank Business segments. The company offers Gamma Platform, which offers a toolbox of separate solution modules that provide technology infrastructure and underlying technologies; marketing management platform, developed from AI Banker App, provides banks relationship managers with technology that supports in managing their acquisition and relationships with retail customers; and wealth management platform that provides banks with tools to enhance the efficiency of their wealth management business. It also provides intelligent product development platform for banks, which allows to shorten product development cycle, enhance speed to market, and facilitate product portfolio management; Regtech, an end-to-end regulatory solution for financial regulatory authorities; asset-liability management solution provides analytics to enhance financial institutions asset liquidity performance; and digital insurance solutions for digitalizing the insurance process, marketing, customer management, and claim processing under intelligent property and casualty insurance and life insurance solution. In addition, the company provides Gamma Voice Solution, an AI customer service for support customer service functions; and Gamma FinCloud, which allows entities with expensive-to-replace legacy systems to directly migrate to the cloud to securely maintain their data. Further, it offers information transmission, information technology advisory, E-commerce security certificate administration, technology promotion and computer application, software and technology, insurance survey and loss adjustment, and asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.
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