First Tractor Co Ltd Class H (HK:0038)
:0038
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First Tractor Co
(0038)
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Rating:62Neutral
Price Target:
HK$9.00
▲(1.01% Upside)
Action:DowngradedDate:03/27/26
The score is primarily supported by attractive valuation (low P/E and strong dividend yield) and generally adequate fundamentals with decent cash generation. Offsetting this are weak technical signals (below key moving averages with negative MACD) and the major fundamental risk of a sharp TTM revenue decline, which reduces confidence in near-term stability.
Positive Factors
Sizeable equity base and ROE
A substantial equity cushion and a mid-teens-quality ROE provide structural resilience versus cyclical demand swings. This capital base improves solvency, supports reinvestment or dividends over multiple cycles, and reduces likelihood of distress financing in a prolonged downturn.
Negative Factors
Severe revenue decline
A near 60% TTM revenue drop is a structural red flag: it erodes scale economics, can leave fixed-cost capacity idle, and undermines dealer and aftermarket revenue. Recovery may require sustained demand improvement or strategic repositioning, raising medium-term execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Sizeable equity base and ROE
A substantial equity cushion and a mid-teens-quality ROE provide structural resilience versus cyclical demand swings. This capital base improves solvency, supports reinvestment or dividends over multiple cycles, and reduces likelihood of distress financing in a prolonged downturn.
Read all positive factors
First Tractor Co (0038) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$14.18B
Dividend Yield4.49%
Average Volume (3M)3.45M
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-9.31%
EPS Growth-13.08%
CountryHK
Employees6,920
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.57
Shares Outstanding391,940,000
10 Day Avg. Volume2,649,106
30 Day Avg. Volume3,447,492
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.10
Price to Sales (P/S)0.80
P/FCF Ratio10.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.00Price Target Upside45.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.82
Revenue Forecast (FY)HK$12.03B
First Tractor Co Business Overview & Revenue Model
Company Description
First Tractor Company Limited engages in the research and development, manufacture, and sale of agricultural and power machinery, and related spare parts worldwide. The company operates through three divisions: Agricultural Machinery, Power Machin...
How the Company Makes Money
First Tractor Co. makes money primarily by selling agricultural machinery—most notably tractors—to end customers and distribution channels. Revenue is generated from (i) sales of tractors and other farm machinery/equipment, and (ii) related after-...
First Tractor Co Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.54B | 11.90B | 11.53B | 12.56B | 9.33B |
| Gross Profit | 1.51B | 1.76B | 1.81B | 1.96B | 1.60B |
| EBITDA | 899.47M | 1.12B | 1.35B | 1.10B | 679.00M |
| Net Income | 790.94M | 922.02M | 997.02M | 681.05M | 433.34M |
Balance Sheet | |||||
| Total Assets | 15.10B | 14.69B | 13.82B | 12.99B | 12.34B |
| Cash, Cash Equivalents and Short-Term Investments | 5.80B | 3.77B | 3.63B | 5.61B | 4.28B |
| Total Debt | 3.06B | 305.32M | 2.39B | 362.29M | 607.18M |
| Total Liabilities | 6.66B | 6.91B | 6.60B | 6.49B | 6.36B |
| Stockholders Equity | 7.66B | 7.26B | 6.69B | 5.96B | 5.40B |
Cash Flow | |||||
| Free Cash Flow | 840.26M | 1.10B | 967.16M | 3.51B | 514.43M |
| Operating Cash Flow | 1.03B | 1.22B | 1.06B | 3.60B | 582.28M |
| Investing Cash Flow | -1.19B | -1.32B | -2.01B | -2.10B | 272.58M |
| Financing Cash Flow | -279.45M | -336.17M | -346.34M | -140.53M | -119.91M |
First Tractor Co Technical Analysis
Negative
8.91
Price Trends
9.12
Negative
8.69
Negative
7.98
Positive
Market Momentum
-0.24
Positive
41.03
Neutral
17.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0038, the sentiment is Negative. The current price of 8.91 is above the 20-day moving average (MA) of 8.54, below the 50-day MA of 9.12, and above the 200-day MA of 7.98, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 17.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0038.
First Tractor Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$110.38B | 9.92 | 14.20% | 4.77% | 15.34% | 20.27% | |
71 Outperform | HK$13.95B | 8.98 | 11.57% | 4.26% | 9.84% | 27.75% | |
68 Neutral | HK$36.52B | 13.19 | 11.00% | 3.41% | 11.08% | 59.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | HK$14.18B | -11.75 | 10.48% | 4.49% | -9.31% | -13.08% | |
61 Neutral | HK$77.40B | 12.43 | 8.40% | 7.28% | 14.66% | 30.39% | |
42 Neutral | HK$111.18M | -2.56 | -19.04% | ― | -43.30% | -39.10% |
* Industrials Sector Average
HK:0038
First Tractor Co
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3.77
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First Tractor Co Corporate Events
First Tractor Sets 2025 Dividend at 36.8% Payout Ratio
Mar 26, 2026
First Tractor Company Limited has approved a 2025 profit distribution plan proposing a cash dividend of RMB0.19746 per share, based on the share capital at the record date. For 2025, net profit attributable to shareholders reached RMB811.95 millio...
First Tractor to Invest Up to RMB2 Billion Idle Funds in Low-Risk Structured Deposits
Mar 26, 2026
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, approv...
First Tractor Sets 2025 Final Dividend and Outlines Profit Distribution Plan
Mar 26, 2026
First Tractor Company Limited has proposed a final cash dividend of RMB 0.19746 per share for the financial year ended 31 December 2025, with key dates including shareholder approval, ex-dividend date, record date, and payment date to be announced...
First Tractor posts higher current assets on solid 2025 earnings
Mar 26, 2026
First Tractor Company Limited reported audited consolidated results for the year ended 31 December 2025, prepared under China Accounting Standards for Business Enterprises. The company generated total operating revenue of RMB10.82 billion, with ne...
First Tractor Sets March 2026 Board Meeting to Approve 2025 Results
Mar 13, 2026
First Tractor Company Limited has scheduled a board meeting for 26 March 2026 to review and approve the annual results for the year ended 31 December 2025. The board will also consider recommending a final dividend and may address other corporate ...
First Tractor Awards RMB71.2 Million Painting Line Upgrade to Sinomach Unit
Feb 3, 2026
First Tractor Co has awarded a technical renovation project for its painting line to China United Engineering, a wholly owned subsidiary of Sinomach Group, following a successful public tender. Under an industrial products sale and purchase contra...
First Tractor Subsidiary Awards RMB23 Million Engine Automation Project in Connected Deal
Feb 3, 2026
First Tractor Co. announced that Beiqiyuan, a wholly owned subsidiary of Sinomach-controlled CAMCE and an associate of Sinomach Group, has won a public tender from YTO Diesel Engine, a controlled subsidiary of First Tractor, for an industrialisati...
First Tractor Says Terminated Share Transfer Will Not Affect Operations
Jan 5, 2026
First Tractor Company Limited announced that its controlling shareholder, YTO, has terminated a share transfer agreement and a related capital reduction agreement with Luoyang Industrial Holding Group after certain conditions precedent could not b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.