First Tractor Co (0038) AI Stock Analysis

• Market Cap: HK$15.04B
• Dividend Yield: 4.49%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.56
• Revenue Growth: -9.90%
• EPS Growth: -20.25%
• Country: HK
• Employees: 6,920
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.22
• Shares Outstanding: 391,940,000
• 10 Day Avg. Volume: 2,649,106
• 30 Day Avg. Volume: 3,447,492
• PEG Ratio: -1.04
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 6.86
• 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$14.00
• Price Target Upside: 57.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$10.00 ▲(12.23% Upside)

First Tractor Co's stock is rated favorably due to strong technical indicators and a solid financial position. The bullish momentum and attractive valuation, with a reasonable P/E ratio and high dividend yield, contribute significantly to the score. While financial performance is robust, there is room for improvement in profitability and cash flow growth.

Positive Factors

Revenue Model

A diverse revenue model with direct sales and after-sales services ensures stable income streams and enhances customer retention, supporting long-term growth.

Government Support

Government subsidies and support for agricultural modernization provide a competitive advantage and enhance the company's market position, fostering sustainable growth.

Operational Efficiency

Strong operational efficiency, as indicated by healthy EBIT and EBITDA margins, supports profitability and competitive positioning in the long term.

Negative Factors

Revenue Decline

A negative revenue growth rate suggests challenges in maintaining sales momentum, which could impact long-term market share and profitability.

Margin Compression

Decreasing gross profit margins may indicate rising costs or pricing pressures, potentially affecting long-term profitability and financial health.

Free Cash Flow Decline

A decline in free cash flow could constrain liquidity and limit the company's ability to invest in growth opportunities, impacting future expansion.

First Tractor Co Business Overview & Revenue Model

Company Description

First Tractor Co (0038) is a leading manufacturer of agricultural machinery and equipment based in China. The company specializes in producing a range of products, including tractors, harvesters, and various farming implements, serving both domestic and international markets. With a strong focus on technological innovation and quality, First Tractor Co aims to enhance agricultural productivity and efficiency for farmers and agricultural enterprises.

How the Company Makes Money

First Tractor Co generates revenue primarily through the sale of its agricultural machinery and equipment. The company has a diverse revenue model that includes direct sales to farmers, agricultural cooperatives, and distributors. Additionally, First Tractor Co offers after-sales services, such as maintenance and repair, which contribute to recurring revenue. Strategic partnerships with agricultural organizations and government programs also facilitate sales and expand market reach. The company benefits from subsidies and support from government initiatives aimed at modernizing agriculture, further enhancing its earnings potential.

First Tractor Co Financial Statement Overview

Summary

First Tractor Co demonstrates a stable financial position with low leverage and decent profitability. However, the decline in revenue and free cash flow growth poses potential risks. The company needs to address operational challenges to improve margins and cash flow generation.

Income Statement

First Tractor Co's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth by 6.6%, which is concerning. However, the company maintains a reasonable net profit margin of 7.13% and a gross profit margin of 13.5%. The EBIT and EBITDA margins have decreased compared to the previous year, indicating potential challenges in operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.041, indicating low leverage and financial stability. The return on equity is decent at 10.41%, suggesting effective use of equity. The equity ratio stands at 50.2%, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 35.65% in the TTM period, which is a concern. The operating cash flow to net income ratio is 0.11, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is healthy at 0.88, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.13B	11.90B	11.53B	12.56B	9.33B	7.58B
Gross Profit	1.61B	1.76B	1.81B	1.96B	1.60B	1.54B
EBITDA	902.46M	1.12B	1.35B	1.10B	679.00M	322.69M
Net Income	836.17M	922.02M	997.02M	681.05M	433.34M	280.15M
Balance Sheet
Total Assets	17.76B	14.69B	13.82B	12.99B	12.34B	12.34B
Cash, Cash Equivalents and Short-Term Investments	3.00B	3.77B	3.63B	5.61B	4.28B	3.01B
Total Debt	3.45B	305.32M	2.39B	362.29M	607.18M	1.27B
Total Liabilities	8.55B	6.91B	6.60B	6.49B	6.36B	7.37B
Stockholders Equity	8.57B	7.26B	6.69B	5.96B	5.40B	4.34B
Cash Flow
Free Cash Flow	553.57M	1.10B	967.16M	3.51B	514.43M	1.17B
Operating Cash Flow	656.82M	1.22B	1.06B	3.60B	582.28M	1.25B
Investing Cash Flow	-1.08B	-1.32B	-2.01B	-2.10B	272.58M	479.94M
Financing Cash Flow	-318.20M	-336.17M	-346.34M	-140.53M	-119.91M	-1.42B

First Tractor Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.91
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 8.91 is above the 20-day moving average (MA) of 8.64, above the 50-day MA of 8.03, and above the 200-day MA of 7.07, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 63.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0038.

First Tractor Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3339	78 Outperform	HK$13.23B	10.28	11.37%	4.26%	2.60%	49.21%
0038	76 Outperform	HK$15.04B	11.13	10.40%	4.49%	-9.90%	-20.25%
1157	74 Outperform	HK$80.54B	16.40	7.29%	7.28%	-3.92%	2.33%
1133	74 Outperform	HK$40.36B	16.89	15.06%	1.44%	34.78%	98.79%
0631	69 Neutral	HK$29.09B	19.78	11.02%	3.41%	15.52%	-23.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1196	45 Neutral	HK$19.25B	-22.62	-31.35%	―	-53.09%	-74.54%

First Tractor Co Corporate Events

First Tractor Says Terminated Share Transfer Will Not Affect Operations

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 be fulfilled. As a result, YTO remains the controlling shareholder with approximately 48.81% of the company’s issued A shares, and the board stated that the termination is not expected to have any material impact on First Tractor’s business operations or financial position, suggesting stability for existing shareholders and limited immediate implications for corporate control or strategy.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co. Announces Successful EGM with Key Resolutions Passed

First Tractor Company Limited held its 2025 third extraordinary general meeting on December 16, 2025, where all proposed resolutions were passed. The meeting included the re-election and appointment of directors, as well as decisions on directors’ remunerations. The event saw participation from shareholders representing 54.78% of the company’s voting shares, demonstrating significant shareholder engagement.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co. Announces Board Composition and Committee Roles

First Tractor Co. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board comprises executive, non-executive, independent non-executive, and employee representative directors, with specific members assigned to four key committees: Strategy, Investment and Sustainable Development, Nomination, Remuneration, and Audit. This announcement underscores the company’s structured governance approach, which may enhance its strategic decision-making and operational oversight, potentially impacting its industry positioning and stakeholder confidence.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co Announces 2025 Extraordinary General Meeting

First Tractor Co has announced its 2025 third extraordinary general meeting, scheduled for December 16, 2025, in Luoyang, China. The meeting will address resolutions including the remuneration plan for directors and the election of both non-independent and independent directors for the Tenth Session of the Board. This meeting is significant for stakeholders as it will determine the leadership structure of the company, potentially impacting its strategic direction and governance.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$9.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co Announces Board Changes and Remuneration Plans

First Tractor Co has announced changes to its Board of Directors, with the expiration of the Ninth Session of the Board. Mr. Miao Yu, a non-executive Director, will retire and not seek re-election, while Mr. Sun Feng is proposed to join as a non-executive Director for the Tenth Session. These changes are subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM), where directors’ remunerations will also be discussed. The re-election and appointment of directors, along with their remunerations, are significant as they reflect the company’s ongoing governance strategies and could impact its operational and strategic direction.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$9.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co Releases 2025 Q3 Report, Emphasizing Transparency

First Tractor Co has released its third quarterly report for 2025, which has not been audited. The company’s board and senior management have ensured the accuracy and completeness of the financial information provided. This announcement highlights the company’s commitment to transparency and accountability, potentially reinforcing its position in the market and maintaining investor confidence.

The most recent analyst rating on (HK:0038) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co. Announces 2025 Q3 Results Presentation

First Tractor Company Limited has announced an upcoming presentation on its 2025 third quarterly results, scheduled for November 4, 2025, at the Shanghai Stock Exchange SSE Roadshow Centre. The presentation aims to provide investors with a comprehensive understanding of the company’s recent operating results through an online text interaction format, where key company figures will address investor questions.

The most recent analyst rating on (HK:0038) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co. Announces Key Leadership Changes

First Tractor Company Limited announced a change in its company secretary and authorized representative roles, effective from October 28, 2025. Ms. Yu Lina has retired from her position, and Mr. Liu Bin and Ms. Wong Nga Ting have been appointed as joint company secretaries, with Ms. Wong also serving as the authorized representative. This transition reflects the company’s ongoing efforts to maintain compliance with listing rules and ensure experienced leadership in its corporate governance structure.

The most recent analyst rating on (HK:0038) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.

First Tractor Co. Announces Board Meeting for Financial Review

First Tractor Company Limited has announced that its Board of Directors will convene on October 28, 2025, to review and approve the unaudited consolidated financial results for the nine months ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0038) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on First Tractor Co stock, see the HK:0038 Stock Forecast page.