Ping An Group’s New York-listed fintech subsidiary OneConnect Financial Tech has just released its performance results for the second quarter of 2020.
According to the results OneConnect saw second quarter revenues of 747 million yuan, for a rise of 48.4% compared to 522 million in the same period last year.
Gross profits saw growth of 93.4% in the second quarter to reach 297 million yuan, yet net profits attributable to shareholders remained negative at minus 330.9 million yuan.
A research report from Morgan Stanley expects OneConnect’s losses to start to narrow, however, with operating leverage enabling the company to achieve profitability by 2023.
According to analysts OneConnect will see annual compound growth in revenues of 47% over a three year period, for a rise from 2.3 billion yuan in 2019 to 7.3 billion yuan in 2023.
Morgan Stanley raised its target price for OneConnect to USD$27.00 from $24.78.