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OC’s platform provides more than 50 cloud-native products that can be deployed on a modular basis or combined to deliver end-to-end solutions. It offers twelve technology solutions across multiple verticals in the financial services industry, including banking, insurance and asset management
OC has registered stupendous revenue growth over 2017-9M19, mostly driven by its rapid customer acquisition. It gets strong support from its parent Ping An which together with Lufax still accounts for over half of its revenue.
The company plans to add more products to its product suite over 2019-20, while also expanding its operations beyond China to other Asian countries. OC was also one of the recipients of the virtual banking license in Hong Kong earlier this year.
However, its dependence on its parent doesn’t seem to be falling as fast as it should be. Moreover, a large proportion of its customer base appears to be using the products for free, as of now. In addition, there are no clear signs of losses coming down. Furthermore, the valuation of its previous round appears stretched.
OneConnect Financial Pre-IPO - Prospects appear promising but previous valuation was demanding
OneConnect Financial Technology (OC) plans to raise around US$500m in its US listing. OC is a part of Ping An group. It provides cloud-native technology applications and technology-enabled services to financial institutions. As of September 30, 2019, it had over 3,700 customers including all of China's major banks, 99% of its city commercial banks, and 46% of its insurance companies.OC’s platform provides more than 50 cloud-native products that can be deployed on a modular basis or combined to deliver end-to-end solutions. It offers twelve technology solutions across multiple verticals in the financial services industry, including banking, insurance and asset management
OC has registered stupendous revenue growth over 2017-9M19, mostly driven by its rapid customer acquisition. It gets strong support from its parent Ping An which together with Lufax still accounts for over half of its revenue.
The company plans to add more products to its product suite over 2019-20, while also expanding its operations beyond China to other Asian countries. OC was also one of the recipients of the virtual banking license in Hong Kong earlier this year.
However, its dependence on its parent doesn’t seem to be falling as fast as it should be. Moreover, a large proportion of its customer base appears to be using the products for free, as of now. In addition, there are no clear signs of losses coming down. Furthermore, the valuation of its previous round appears stretched.
Underlying
Ping An Insurance (Group) Company of China Ltd. Class H
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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