First Tractor to Acquire 39% Stake in Connected Target Company

First Tractor Co ( (HK:0038) ) has issued an update.

First Tractor Co. has agreed to acquire a 39% equity interest in a target company from Intelligent Research Institute Company for RMB19.79 million, after emerging as the successful bidder in a public tender on the Beijing Equity Exchange. The deal is intended to deepen First Tractor’s involvement in the target company and reflects its ongoing use of equity investments to reinforce its operational and technological base.

Because Intelligent Research Institute Company is partly owned by YTO, First Tractor’s controlling shareholder, the transaction is treated as a connected transaction under Hong Kong listing rules, triggering reporting, annual review and announcement obligations but not requiring independent shareholders’ approval. The relatively small size of the deal keeps regulatory requirements light, while formally bringing the transaction within the connected-party oversight framework, which is relevant for governance and minority shareholder protection.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$13.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

More about First Tractor Co

First Tractor Co. operates in the agricultural machinery industry, focusing on the design, manufacture and sale of tractors and related equipment. The company serves domestic and international markets, with a strategic emphasis on strengthening its industrial chain and technological capabilities through targeted equity investments and partnerships.

YTD Price Performance: 2.03%

Average Trading Volume: 4,410,342

Technical Sentiment Signal: Buy

Current Market Cap: HK$14.67B

See more data about 0038 stock on TipRanks’ Stock Analysis page.