First Tractor to Invest Up to RMB2 Billion Idle Funds in Low-Risk Structured Deposits

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

First Tractor Company plans to deploy up to RMB2.0 billion of its internal idle funds into low-risk, principal-guaranteed structured deposit products issued by banks, with each product having a maturity of up to one year. The authorization, approved by the board for a 12‑month period and not requiring shareholder approval, is intended to improve capital utilization and enhance investment income while maintaining sufficient liquidity and capital security for day‑to‑day operations.

Management emphasized that these structured deposits offer high security and good liquidity, and that the aggregate investment cap can be used on a rolling basis over the authorization period. While the company considers the risks controllable, it cautioned that returns may fluctuate due to macroeconomic and policy factors, signaling a conservative treasury strategy that could marginally boost returns without materially altering its risk profile for investors.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$14.00 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 Company Limited is a mainland Chinese manufacturer focused on agricultural and related machinery, with its shares listed in Hong Kong. The company operates in a capital-intensive industry and periodically holds substantial seasonal cash balances, which it seeks to deploy in low-risk bank products to optimize returns without compromising liquidity or operational funding needs.

Average Trading Volume: 3,857,184

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$14.44B

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