First Tractor Co (0038) AI Stock Analysis

• Market Cap: HK$14.16B
• Dividend Yield: 4.49%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -9.90%
• EPS Growth: -20.25%
• Country: HK
• Employees: 6,920
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -0.18
• Shares Outstanding: 391,940,000
• 10 Day Avg. Volume: 2,649,106
• 30 Day Avg. Volume: 3,447,492
• PEG Ratio: -0.73
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 10.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$13.00
• Price Target Upside: 45.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.81
• Revenue Forecast (FY): HK$12.36B

• Rating: 62 Neutral
• Price Target: HK$9.00 ▲(1.01% Upside)
• Action: Downgraded Date: 03/27/26
• Date: Action: Downgraded 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.

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...

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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-...

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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

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

• Technical Analysis Sentiment: Negative
• Last Price: 8.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 8.98, below the 50-day MA of 9.19, and above the 200-day MA of 7.93, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 39.07 is Neutral, neither overbought nor oversold. The STOCH value of 23.44 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3808	72 Outperform	HK$120.21B	9.92	14.20%	4.77%	4.23%	-3.54%
3339	71 Outperform	HK$14.12B	8.98	11.57%	4.26%	2.60%	49.21%
0631	68 Neutral	HK$39.90B	4.40	11.00%	3.41%	15.52%	-23.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0038	62 Neutral	HK$14.16B	-11.75	10.48%	4.49%	-9.90%	-20.25%
1157	61 Neutral	HK$86.14B	12.43	7.45%	7.28%	-3.92%	2.33%
0840	42 Neutral	HK$112.74M	-2.56	-19.04%	―	-65.44%	-149200.00%

First Tractor Co Corporate Events