Shares of OneConnect Monetary Expertise (NYSE:OCFT) rocketed 103.6% greater in 2020, in accordance with knowledge supplied by S&P Global Market Intelligence. The Chinese language fintech participant truly had its IPO again in December of 2019, so 2020 marked its first yr as a public firm. Like many software program shares, OneConnect rocketed greater starting in April, as buyers anticipated the acceleration of the digital economic system, which was quickly borne out by sturdy monetary outcomes.
Though the COVID-19 pandemic triggered the world economic system to plunge right into a recession, with monetary corporations pulling again on lending and different exercise, OneConnect nonetheless put up spectacular numbers, with income accelerating all year long to final quarter’s spectacular 50.7% development.
OneConnect presents software program particularly tailor-made to Asian monetary establishments, throughout originations, threat administration, operations, and cloud back-end providers. Chinese language monetary establishments are comparatively under-penetrated by way of digitization, so the expansion prospects for OneConnect are tantalizing, as evidenced by its sturdy income development even within the midst of a pandemic.
OneConnect looks like a promising international growth stock that flies below the radar of many U.S. buyers. Whereas it’s true that the corporate nonetheless generates pretty hefty working losses, and will depend on guardian firm Ping An Insurance coverage Firm of China (OTC: PNGAY) for a big chunk of enterprise, there isn’t any doubt it has a tantalizing market alternative, and the market took discover and applauded it all through final yr.