OneConnect (OCFT) Reports Significant Drop in Q1 Revenue

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May 28, 2025
  • OneConnect Financial Technology (OCFT, Financial) reports a substantial 49.2% drop in Q1 2025 revenue due to declining cloud services.
  • Analysts predict a significant downside for the stock, with a one-year price target of $3.03, compared to the current $7.15.
  • Current brokerage consensus rates OCFT as a "Buy," despite potential valuation discrepancies highlighted by GF Value.

OneConnect Financial Technology's Q1 Revenue Decline

OneConnect Financial Technology (OCFT) has experienced a noteworthy revenue contraction of 49.2% in the first quarter of 2025, with total revenue reducing to RMB368 million from RMB723 million the previous year. This downturn is primarily driven by decreased revenues in their cloud services segment. Despite the revenue shortfall, the company managed to improve its loss per basic and diluted ADS, which narrowed to RMB-1.06 from RMB-1.48.

Analyst Price Targets and Recommendations

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According to insights from a single analyst, OneConnect Financial Technology Co Ltd (OCFT, Financial) is projected to have a one-year average price target of $3.03, with both the high and low estimates aligning at $3.03. This forecast indicates a substantial downside of 57.64% from its recent trading price of $7.15. Investors can explore comprehensive estimate data on the OneConnect Financial Technology Co Ltd (OCFT) Forecast page.

The company's current average brokerage recommendation is 1.0, signifying a "Buy" status as per the single brokerage firm assessing it. The rating scale spans from 1 to 5, where 1 is Strong Buy and 5 is Sell. This indicates a positive outlook from the brokerage despite the significant projected price decline.

Evaluating OCFT's GF Value

Utilizing GuruFocus metrics, the estimated GF Value for OneConnect Financial Technology Co Ltd (OCFT, Financial) in the coming year stands at $1.69, which suggests a remarkable downside of 76.36% from its current price point of $7.15. The GF Value is an estimation of the fair market value based on historical multiples, past growth, and future performance predictions. For a more thorough analysis, visit the OneConnect Financial Technology Co Ltd (OCFT) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.