OneConnect Financial (OCFT) Earnings Release Analysis 16 Aug 2023 Pre-Market

What I would be looking for is how OneConnect Financial would be doing to produce significant growth to justify its low P/E ratio.

Despite having a terrific growth of 48% last year, they have not been able to produce consistent growth in recent times.

Investors are not comfortable to be holding or getting into a stock which will continue to follow the China indices. Something important we need to take note is the share price have pulled the P/E ratio lower by quite a lot. So a positive and better earnings might not be able to create wonders.

In this article I would like share the fundamental data and how the share price have been trading in terms of Technical Analysis.

I would expect OneConnect Financial to post a much lower EPS that estimate. It could be in the range of -$0.20 to -$0.22.

Considering that China economy has slowed down and signs of government stimulus package is not clear. There might be some headwinds OneConnect Financial will face even after its result released.

Looking at how OneConnect Financial has report a less-than-expected EPS forecast. Their revenues should also be reduced due to the weakening demand of services.

Chinese businesses might be holding back plans to expand. Hence, OneConnect Financial might not have any new businesses coming.

Hedge funds has reduced very little shares in the last quarter, this might be due to hedge funds is waiting to see how China would be reacting to the slowness.

How China will be boosting its recovery, I believe will benefit OneConnect Financial if the economy recover well in Q3 2023.

I would look forward to the outlook from OneConnect Financial for 2023.

OneConnect Financial has lost more than 20% in growth YTD. This could further worsen as China recovery from the pandemic has slowed down.

If China economy does not show significant improvement in Q3, OneConnect Financial might face more challenges into the end of 2023.

OneConnect Financial have been on a bear trend for a long time, there have been no sign of trend change.

With the challenges they are facing ahead, it could take a long time for OneConnect Financial to recover. Unless OneConnect Financial report an exceptional financial results.

RSI momentum looks normal, there is no signs of buying or selling approaching. I would think this stock might just trade flat or sideway on 15 Aug 23 before its earning release on 16 Aug pre-market.

I would continue to monitor the price action to gather any clues of what we might be expecting from its financial results.

ADX is below 20 indicating a weak trend and -DI touches +DI suggest that this is a bearish downside and potentially neutral strength.

We might not see much trading activities unless OneConnect Financial has some special announcement or news.

OneConnect Financial has a bearish reversal in mid-July and have been on a downside trend since. The only potential sign of a bullish reversal would be a very good financial results.

But looking at how things are, OneConnect Financial might not perform better-than-expected estimates.

Based on what I have observed, it seem like OneConnect Financial has some challenges to overcome before they can start winning investors confidence in their stock.

With China economy recovery slowness, OneConnect Financial plan on how to navigate the current situation might be something I would look out for.

Appreciate if you could share your thoughts in the comment section whether you think OneConnect Financial would trade flat prior to its financial results released on 16 Aug 23 Pre-market.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.