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First Tractor Co
(0038)
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Rating:72Outperform
Price Target:
HK$10.00
▲(17.65% Upside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by solid financial performance (return to revenue growth, strong recent free-cash-flow generation, and manageable leverage). Technicals add support due to an uptrend with positive momentum signals. Valuation is the main restraint, with a mid-to-higher P/E partially offset by a ~3.26% dividend yield.
Positive Factors
Revenue Recovery
The return to revenue growth indicates renewed demand for tractors and related machinery. Sustained top-line expansion can improve factory utilization, strengthen the sales network and support earnings growth if product demand remains healthy.
Negative Factors
Margin Compression
Lower margins than in 2023 suggest persistent pricing, product-mix or manufacturing-cost pressure. If these factors continue, revenue growth may translate less effectively into operating profit and restrict reinvestment or shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The return to revenue growth indicates renewed demand for tractors and related machinery. Sustained top-line expansion can improve factory utilization, strengthen the sales network and support earnings growth if product demand remains healthy.
Read all positive factors
First Tractor Co (0038) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$16.35B
Dividend Yield3.19%
Average Volume (3M)3.88M
Price to Earnings (P/E)20.0
Beta (1Y)0.58
Revenue Growth11.49%
EPS Growth10.65%
CountryHK
Employees7,011
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.74
Shares Outstanding391,940,000
10 Day Avg. Volume4,982,438
30 Day Avg. Volume3,877,364
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)1.10
Price to Sales (P/S)0.78
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$14.00Price Target Upside64.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.81
Revenue Forecast (FY)HK$12.21B
First Tractor Co Business Overview & Revenue Model
Company Description
First Tractor Co., Ltd. engages in the research, development, manufacture, and sale of agricultural machinery and power machinery as well as their parts and components. It operates through the following business segments: Agricultural machinery, P...
How the Company Makes Money
First Tractor Co. makes money primarily by selling tractors and related agricultural machinery/equipment to end customers through its sales network. Revenue is generated from (1) product sales of tractors and other farm machinery (the main stream)...
First Tractor Co Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.71B | 10.82B | 11.90B | 11.53B | 12.56B | 9.33B |
| Gross Profit | 1.79B | 1.60B | 1.76B | 1.81B | 1.96B | 1.60B |
| EBITDA | 1.04B | 881.53M | 1.12B | 1.35B | 1.10B | 679.00M |
| Net Income | 821.80M | 811.95M | 922.02M | 997.02M | 681.05M | 433.34M |
Balance Sheet | ||||||
| Total Assets | 17.32B | 15.10B | 14.69B | 13.82B | 12.99B | 12.34B |
| Cash, Cash Equivalents and Short-Term Investments | 3.33B | 5.80B | 3.77B | 3.63B | 5.61B | 4.28B |
| Total Debt | 3.08B | 3.04B | 305.32M | 2.39B | 362.29M | 607.18M |
| Total Liabilities | 8.29B | 6.87B | 6.91B | 6.60B | 6.49B | 6.36B |
| Stockholders Equity | 8.22B | 7.66B | 7.26B | 6.69B | 5.96B | 5.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.61B | 840.26M | 1.10B | 967.16M | 3.51B | 514.43M |
| Operating Cash Flow | 1.91B | 1.03B | 1.22B | 1.06B | 3.60B | 582.28M |
| Investing Cash Flow | -1.95B | -1.19B | -1.32B | -2.01B | -2.10B | 272.58M |
| Financing Cash Flow | -74.91M | -279.45M | -336.17M | -346.34M | -140.53M | -119.91M |
First Tractor Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$14.70B | 8.74 | 12.47% | 5.92% | 21.86% | 25.46% | |
72 Outperform | HK$16.35B | 19.97 | 10.33% | 3.19% | 11.49% | 10.65% | |
71 Outperform | HK$116.51B | 12.11 | 17.17% | 5.04% | 38.33% | 37.12% | |
68 Neutral | HK$32.11B | 15.87 | 12.81% | 3.69% | 19.07% | 29.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | HK$64.21B | 13.58 | 7.23% | 7.44% | 22.97% | 6.24% | |
44 Neutral | HK$90.92M | -1.98 | -11.88% | ― | 40.13% | 44.68% |
* Industrials Sector Average
HK:0038
First Tractor Co
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First Tractor Co Corporate Events
First Tractor posts solid interim profit as working capital mix shifts
Aug 25, 2026
First Tractor Company Limited reported audited interim results for the six months ended 30 June 2026, posting total operating revenue of RMB7.89 billion and net profit attributable to equity holders of RMB782.29 million. Earnings per share reached...
First Tractor Co. Formalizes Connected Factoring Deal With Sinomach Unit
Aug 25, 2026
First Tractor Co., via its subsidiary YTO International, is a major player in China’s agricultural machinery industry, focusing on the production and sale of tractors and related equipment to large institutional and industrial clients. Its o...
First Tractor Sets 10% Interim Dividend Payout for 2026
Aug 25, 2026
First Tractor Company Limited, a leading Chinese agricultural machinery maker listed in Hong Kong, derives its earnings mainly from the sale of tractors and related equipment. With a substantial share base and a focus on mechanised farming markets...
First Tractor Declares Interim Dividend for First Half of 2026
Aug 25, 2026
First Tractor Company Limited, a Hong Kong-listed manufacturer of agricultural machinery and tractors, serves farming and industrial clients in China and abroad. Its governance framework includes a chairman, executive and non-executive directors, ...
First Tractor flags RMB95.8m fair value hit to interim profit
Aug 25, 2026
First Tractor Company Limited has announced the recognition of fair value changes on its financial assets and liabilities as of 30 June 2026, in line with Chinese accounting standards and listing rules in Hong Kong and Shanghai. The adjustments ma...
First Tractor Sets August Board Meeting to Approve Interim Results and Dividend Plan
Aug 13, 2026
First Tractor Company Limited has scheduled a board meeting for 25 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider a recommendation for an interim dividend, a decision that ...
First Tractor Gains Strong Shareholder Backing at 2026 Extraordinary Meetings
Aug 4, 2026
First Tractor Company Limited reported that all resolutions proposed at its 2026 first extraordinary general meeting and separate class meetings for A share and H share holders, held on 4 August 2026 in Luoyang, Henan Province, were duly approved ...
First Tractor Seeks Mandate for 10% H-Share Buyback at 2026 EGM
Jul 15, 2026
First Tractor Company Limited has called its first extraordinary general meeting of 2026 for 4 August in Luoyang, Henan, to seek shareholder approval for a special resolution on H share repurchases. The meeting will consider granting the board a g...
First Tractor Seeks Mandate for 10% H-Share Buyback at 2026 Class Meeting
Jul 15, 2026
First Tractor Company Limited has called a 2026 first class meeting for holders of its H shares in Luoyang, Henan, to vote on a special resolution granting the board authority to repurchase up to 10% of the company’s H shares in issue, exclu...
First Tractor Secures Full Shareholder Approval at 2025 AGM
Jun 2, 2026
First Tractor Company Limited reported that all resolutions proposed at its 2025 annual general meeting, held on 2 June 2026 in Luoyang, Henan Province, were duly passed by poll. The meeting saw participation from 253 shareholders or proxies, repr...
First Tractor Sets 2025 Final Dividend and Details Payout Terms for H-Share Holders
Jun 2, 2026
First Tractor Company Limited has confirmed its final dividend distribution for the 2025 financial year, following shareholder approval at its 2 June 2026 annual general meeting. The board maintained a cash dividend of RMB0.19746 per share, with H...
First Tractor Updates Final 2025 Dividend Terms and Tax Treatment
Jun 2, 2026
First Tractor Company Limited has updated details of its final dividend for the year ended 31 December 2025, confirming a payout of RMB 0.19746 per share, with Hong Kong shareholders to receive HKD 0.2243 per share based on an exchange rate of RMB...
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.