First Tractor Co (0038) AI Stock Analysis

• Market Cap: HK$13.32B
• Dividend Yield: 4.62%
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.48
• Revenue Growth: -2.89%
• EPS Growth: -24.56%
• Country: HK
• Employees: 6,920
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 0.52
• Shares Outstanding: 391,940,000
• 10 Day Avg. Volume: 3,852,944
• 30 Day Avg. Volume: 4,948,982
• PEG Ratio: -1.79
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.66
• 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$8.01
• Price Target Upside: 12.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: HK$8.00 ▲(12.20%Upside)

The overall score for First Tractor Co is driven by its strong financial performance and reasonable valuation. While the stock shows positive momentum, caution is advised due to technical indicators suggesting overbought conditions. Investors should also be mindful of the company's declining asset base and fluctuating profit margins.

First Tractor Co Business Overview & Revenue Model

Company Description

First Tractor Co. (0038) is a prominent Chinese company engaged in the manufacturing and distribution of agricultural machinery and equipment. The company primarily operates in two sectors: the agricultural machinery segment and the construction machinery segment. Its core products include tractors, harvesters, and other farming implements, which are essential for modern agricultural practices. First Tractor Co. also provides spare parts and after-sales services, ensuring comprehensive support for its machinery products.

How the Company Makes Money

First Tractor Co. makes money through the sale of its agricultural and construction machinery products. The primary revenue stream comes from selling tractors and harvesters to farmers and agricultural businesses. Additionally, the company generates income from its construction machinery offerings, which include a range of heavy equipment used in construction and infrastructure projects. The company also earns revenue from providing spare parts and maintenance services, ensuring long-term customer relationships and continuous revenue from its existing customer base. Significant partnerships with local and international distributors expand its market reach, enhancing its earnings potential. Government policies supporting agriculture and infrastructure development can also positively impact the company's sales and revenue growth.

First Tractor Co Financial Statement Overview

Summary

First Tractor Co demonstrates solid financial health with strong revenue growth and consistent cash flow generation. The balance sheet is robust and conservatively leveraged. However, attention should be paid to the declining asset base and fluctuating net profit margin, which could pose challenges in the future.

Income Statement

The company shows a strong revenue growth trend, with a significant increase from 2019 to 2024. The gross profit margin remains solid, reflecting efficient cost management. However, the net profit margin has seen some volatility, impacted by fluctuations in net income. Overall, profitability is robust, but the declining trend in gross profit from 2022 to 2023 is a concern.

Balance Sheet

The balance sheet reflects a strong equity base with a healthy equity ratio, indicating lower financial risk. The debt-to-equity ratio is low, suggesting conservative leverage. ROE has been improving, showing effective use of equity to generate profits. However, the decrease in total assets from 2022 to 2023 could indicate potential challenges in asset management.

Cash Flow

Cash flow is a strong area for the company, with consistent free cash flow generation and a positive operating cash flow to net income ratio. The free cash flow growth rate is impressive, highlighting effective cash management. The stability in operating cash flow supports ongoing operations well.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.90B	11.53B	14.22B	9.33B	7.58B
Gross Profit	1.76B	1.81B	2.32B	1.60B	1.54B
EBITDA	1.12B	1.35B	970.74M	849.22M	754.20M
Net Income	922.02M	997.02M	681.05M	433.34M	280.15M
Balance Sheet
Total Assets	14.69B	13.82B	12.99B	12.34B	12.34B
Cash, Cash Equivalents and Short-Term Investments	3.77B	3.63B	6.35B	4.28B	3.01B
Total Debt	305.32M	2.39B	353.81M	607.18M	1.26B
Total Liabilities	6.91B	6.60B	7.34B	6.36B	7.37B
Stockholders Equity	7.26B	6.69B	3.74B	5.40B	4.34B
Cash Flow
Free Cash Flow	1.10B	967.16M	3.51B	514.43M	1.17B
Operating Cash Flow	1.22B	1.06B	3.60B	582.28M	1.25B
Investing Cash Flow	-1.32B	-2.01B	―	272.58M	479.94M
Financing Cash Flow	-336.17M	-346.34M	―	―	―

First Tractor Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.13
• 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 7.13 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.64, and above the 200-day MA of 6.72, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 79.26 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
1133	78 Outperform	€13.02B	7.12	11.35%	4.23%	30.12%	139.92%
0631	73 Outperform	$24.55B	20.11	9.23%	3.81%	5.79%	-44.89%
3339	72 Outperform	$10.06B	9.11	9.85%	5.53%	-5.02%	54.95%
0038	70 Outperform	HK$13.32B	8.60	11.27%	4.62%	-2.89%	-24.56%
1157	67 Neutral	HK$66.85B	13.18	6.96%	5.40%	-5.32%	-2.93%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
1196	57 Neutral	€12.26B	―	-26.60%	―	-46.56%	-1256.77%

First Tractor Co Corporate Events

First Tractor Co. Announces Deputy General Manager’s Resignation

First Tractor Company Limited announced the resignation of Mr. Xue Wenpu from his role as deputy general manager due to a change in work arrangements. His departure, effective immediately, will not impact the company’s daily operations, and he has no disagreements with the board. The board has expressed gratitude for his contributions, and the transition has been handled smoothly.

First Tractor Co Updates Final Dividend for 2024

First Tractor Company Limited has announced an update to its final cash dividend for the year ended December 31, 2024. The dividend, declared at RMB 0.2995 per share, will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.08306, with a payment date set for July 18, 2025. The announcement includes details on withholding tax rates applicable to different types of shareholders, emphasizing the company’s compliance with tax regulations for both Mainland and non-resident investors. This update reflects First Tractor’s commitment to transparent financial practices and its strategic positioning within the agricultural machinery sector, potentially impacting investor relations and shareholder value.

First Tractor Co Successfully Passes AGM and Class Meeting Resolutions

First Tractor Co announced that all resolutions proposed at its Annual General Meeting and Class Meetings for holders of A and H shares were successfully passed by poll on June 10, 2025. This outcome reflects strong shareholder support and may positively impact the company’s governance and strategic direction, reinforcing its position in the agricultural machinery sector.

First Tractor Co Announces 2024 Final Dividend Distribution

First Tractor Co has announced a cash dividend distribution of RMB0.2995 per share for the year 2024, which was approved by shareholders at the annual general meeting. The dividend will be paid to holders of H Shares in Hong Kong dollars, with specific arrangements for conversion and taxation outlined. The closure of the register of members is scheduled from June 16 to June 19, 2025, to determine eligible shareholders, impacting how stakeholders engage with the company’s financial distributions.

First Tractor Co. Updates Final Dividend Details for 2024

First Tractor Company Limited has announced an update regarding its final dividend for the year ended 31 December 2024. The update includes changes to the default currency and amount of the dividend, exchange rate, payment date, and details of withholding tax. The dividend is set at RMB 0.2995 per share, with a payment date of 18 July 2025. The company has outlined specific withholding tax rates for different types of shareholders, which will impact how dividends are distributed to both resident and non-resident investors. This announcement is significant as it reflects the company’s commitment to maintaining shareholder value and provides clarity on the tax implications for various investor groups.

First Tractor Co. to Engage in Low-Carbon Energy Presentation

First Tractor Company Limited announced its participation in the 2024 Shanghai Main Board Low-carbon New Energy Thematic Group Presentation. The event, scheduled for May 28, 2025, will be a platform for the company to discuss its 2024 operating results, 2025 first quarterly results, financial status, and ESG performance. This participation underscores the company’s dedication to transparency and investor engagement, potentially strengthening its industry position and stakeholder relations.

First Tractor Co. Announces 2024 AGM and Strategic Share Repurchase Plan

First Tractor Company Limited has announced its 2024 annual general meeting, scheduled for June 10, 2025, in Luoyang, China. The meeting will address various resolutions, including the approval of the company’s financial and supervisory reports, profit distribution plan, and the appointment of auditors. A special resolution will consider granting the board a mandate to repurchase up to 10% of the company’s H Shares, reflecting a strategic move to manage share capital and potentially enhance shareholder value.

First Tractor Co. Announces H Share Repurchase Plan

First Tractor Company Limited has announced a special resolution to authorize its board of directors to repurchase up to 10% of its H Shares during a specified period. This move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting the company’s proactive approach to managing its market presence and financial health.

First Tractor Co. Updates Final Dividend Details for 2024

First Tractor Co. has announced an update regarding its final cash dividend for the year ended December 31, 2024. The dividend is set at RMB 0.2995 per share, with key dates including a shareholder approval on June 10, 2025, and an ex-dividend date of June 12, 2025. The announcement reflects the company’s commitment to returning value to its shareholders, potentially impacting its market positioning and stakeholder relations positively.

First Tractor Co. Schedules Investor Presentation for 2024 Annual and 2025 Q1 Results

First Tractor Company Limited announced a presentation to discuss its 2024 annual results and 2025 first quarterly results, scheduled for May 16, 2025. The presentation aims to provide investors with a comprehensive understanding of the company’s recent performance and will be conducted via video recording and online interaction, allowing stakeholders to engage and have their questions addressed.

First Tractor Co Revises 2025 Sales Cap Amid Increased Demand

First Tractor Co, a company involved in the production and sale of raw materials, spare parts, components, and equipment, has announced a revision to its Sale of Goods Agreement for 2025. The company plans to increase the annual cap from RMB340 million to RMB560 million due to anticipated higher demand, ensuring sufficient business operations. This adjustment reflects the company’s strategic response to projected growth and maintains compliance with Hong Kong Listing Rules, though it does not require independent shareholders’ approval.

First Tractor Proposes H Share Repurchase to Enhance Investor Confidence

First Tractor Company Limited has proposed to its shareholders a general mandate allowing the board of directors to repurchase up to 10% of its H shares. This move is intended to boost investor confidence and protect shareholder interests by providing the board with flexibility in managing the company’s capital structure. The repurchased shares will be canceled, reducing the company’s registered capital, and the board will have the discretion to manage the specifics of the repurchase process, including price and quantity.

First Tractor Co. Releases 2025 Q1 Report with Emphasis on Transparency

First Tractor Co. has released its 2025 first quarterly report, ensuring stakeholders of the accuracy and completeness of its financial information, although the statements have not been audited. The announcement underscores the company’s commitment to transparency and accountability, which may bolster investor confidence and influence its market positioning positively.