First Tractor Co Ltd Class H (HK:0038)
:0038
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First Tractor Co
(0038)
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Rating:75Outperform
Price Target:
HK$10.00
▲(12.23% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by attractive valuation (very low P/E and strong dividend yield) and solid financial performance with a sharp TTM revenue rebound and manageable leverage. This is tempered by compressed operating profitability vs 2023 and historically volatile cash-flow consistency, while technical signals are broadly neutral.
Positive Factors
Revenue rebound
A 65.3% TTM revenue rebound indicates a durable recovery in end-market demand for tractors and parts. Sustained top-line growth enhances operating scale, supports dealer/distribution economics and after-sales penetration, and creates a stronger base for reinvestment and product development over months.
Negative Factors
Compressed operating margins
EBIT margin decline from ~8.9% to ~5.6% TTM suggests sustained margin pressure from cost inflation, adverse product mix, or limited pricing power. Lower operating profitability constrains internally generated funds for capex and innovation and can depress longer-term ROE if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
A 65.3% TTM revenue rebound indicates a durable recovery in end-market demand for tractors and parts. Sustained top-line growth enhances operating scale, supports dealer/distribution economics and after-sales penetration, and creates a stronger base for reinvestment and product development over months.
Read all positive factors
First Tractor Co (0038) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$14.38B
Dividend Yield4.49%
Average Volume (3M)3.45M
Price to Earnings (P/E)3.7
Beta (1Y)0.51
Revenue Growth-4.80%
EPS Growth2.58%
CountryHK
Employees6,920
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.74
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$12.00B
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 mainly by selling tractors and other agricultural machinery to end customers and dealers/distributors, recognizing revenue from equipment sales. Additional revenue is typically generated from sales of parts/components ...
First Tractor Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
77
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.88B | 10.54B | 11.90B | 11.53B | 12.56B | 9.33B |
| Gross Profit | 1.65B | 1.51B | 1.76B | 1.81B | 1.96B | 1.60B |
| EBITDA | 764.77M | 899.47M | 1.12B | 1.35B | 1.10B | 679.00M |
| Net Income | 842.50M | 790.94M | 922.02M | 997.02M | 681.05M | 433.34M |
Balance Sheet | ||||||
| Total Assets | 16.99B | 15.10B | 14.69B | 13.82B | 12.99B | 12.34B |
| Cash, Cash Equivalents and Short-Term Investments | 2.77B | 5.80B | 3.77B | 3.63B | 5.61B | 4.28B |
| Total Debt | 2.27B | 3.04B | 305.32M | 2.39B | 362.29M | 607.18M |
| Total Liabilities | 8.22B | 6.87B | 6.91B | 6.60B | 6.49B | 6.36B |
| Stockholders Equity | 8.20B | 7.66B | 7.26B | 6.69B | 5.96B | 5.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 840.26M | 1.10B | 967.16M | 3.51B | 514.43M |
| Operating Cash Flow | 1.27B | 1.03B | 1.22B | 1.06B | 3.60B | 582.28M |
| Investing Cash Flow | -1.82B | -1.19B | -1.32B | -2.01B | -2.10B | 272.58M |
| Financing Cash Flow | -255.72M | -279.45M | -336.17M | -346.34M | -140.53M | -119.91M |
First Tractor Co Technical Analysis
Negative
8.91
Price Trends
8.84
Negative
8.93
Negative
8.17
Positive
Market Momentum
-0.09
Positive
38.30
Neutral
14.53
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 8.84, above the 50-day MA of 8.84, and above the 200-day MA of 8.17, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 14.53 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$13.27B | 4.32 | 11.57% | 4.26% | 9.84% | 27.75% | |
75 Outperform | HK$14.38B | 3.69 | 10.76% | 4.49% | -4.80% | 2.58% | |
66 Neutral | HK$100.50B | 4.80 | 14.20% | 4.77% | 15.34% | 20.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | HK$34.21B | 13.19 | 13.75% | 3.41% | 11.08% | 59.37% | |
57 Neutral | HK$71.43B | 19.02 | 7.49% | 7.28% | 14.66% | 30.39% | |
47 Neutral | HK$104.94M | -0.54 | -19.04% | ― | -43.23% | -39.10% |
* Industrials Sector Average
HK:0038
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First Tractor Co Corporate Events
First Tractor to Brief Investors on 2025 Results and Q1 2026 Performance
Apr 30, 2026
First Tractor Company Limited will host a results presentation on 12 May 2026 to discuss its 2025 annual results and 2026 first-quarter performance with investors. The event, held via live video streaming and online interaction platforms operated ...
First Tractor Affirms Accuracy of Unaudited 2026 First-Quarter Report
Apr 28, 2026
First Tractor Company Limited has released its unaudited first quarterly report for 2026, with the board, directors and senior management collectively affirming the truthfulness, accuracy and completeness of the disclosed information. The company&...
First Tractor Plans 39% Stake Purchase and Capital Injection in Agri-Tech Affiliate
Apr 28, 2026
First Tractor Co. plans to acquire a 39% equity stake in an affiliated agricultural technology manufacturer, referred to as the Target Company, from Intelligent Research Institute Company via a public tender on the China Beijing Equity Exchange. I...
First Tractor Raises R&D Transaction Cap to Accelerate High-End Farm Machinery Push
Apr 28, 2026
First Tractor Co. plans to raise the 2026 annual cap on transactions under its research and development services agreement with controlling shareholder YTO, aiming to speed up development and launch of high-end agricultural machinery such as power...
First Tractor Sets Board Meeting to Approve First-Quarter 2026 Results
Apr 15, 2026
First Tractor Company Limited, a major Chinese agricultural machinery maker listed in Hong Kong, designs and produces tractors and related equipment for farming and industrial users at home and abroad. Its governance framework includes executive, ...
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 ...
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.