First Tractor Co (0038) AI Stock Analysis

• Market Cap: $13.54B
• Dividend Yield: 5.12%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.49
• 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: 0.33
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 4.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$9.00 ▲(16.13% Upside)

The overall stock score of 71 reflects a combination of stable financial performance and positive technical indicators, tempered by potential risks from declining revenue and cash flow. The stock's valuation is attractive with a low P/E ratio and high dividend yield, making it appealing for value and income-focused investors. However, caution is advised due to technical signals indicating overbought conditions.

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	11.03B	11.90B	11.53B	12.56B	9.33B	7.58B
Gross Profit	1.54B	1.76B	1.81B	1.96B	1.60B	1.54B
EBITDA	893.04M	1.12B	1.35B	970.74M	849.22M	754.20M
Net Income	785.71M	922.02M	997.02M	681.05M	433.34M	280.15M
Balance Sheet
Total Assets	15.31B	14.69B	13.82B	12.99B	12.34B	12.34B
Cash, Cash Equivalents and Short-Term Investments	6.74B	3.77B	3.63B	5.61B	4.28B	3.01B
Total Debt	319.14M	305.32M	2.39B	362.29M	615.43M	1.27B
Total Liabilities	7.04B	6.91B	6.60B	6.49B	6.36B	7.37B
Stockholders Equity	7.69B	7.26B	6.69B	5.96B	5.40B	4.34B
Cash Flow
Free Cash Flow	607.95M	1.10B	967.16M	3.51B	514.43M	1.17B
Operating Cash Flow	698.45M	1.22B	1.06B	3.60B	582.28M	1.25B
Investing Cash Flow	-913.52M	-1.32B	-2.01B	-2.10B	272.58M	479.94M
Financing Cash Flow	-195.71M	-336.17M	-346.34M	-140.53M	-119.91M	-1.42B

First Tractor Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7.75 is above the 20-day moving average (MA) of 7.58, above the 50-day MA of 7.33, and above the 200-day MA of 6.74, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 41.77 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	$13.23B	10.28	11.37%	4.09%	2.60%	49.21%
1133	77 Outperform	HK$33.16B	13.87	15.06%	1.72%	34.78%	98.79%
1157	74 Outperform	HK$75.23B	15.10	7.29%	4.18%	-3.92%	2.33%
0038	71 Outperform	$13.54B	9.95	10.40%	5.12%	-9.90%	-20.25%
0631	71 Outperform	$23.10B	15.71	11.02%	4.06%	15.52%	-23.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1196	45 Neutral	HK$18.12B	―	-31.35%	―	-53.09%	-74.54%

First Tractor Co Corporate Events

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.

First Tractor Co. Enhances Governance with New Audit Committee

First Tractor Company Limited has established an Audit Committee to enhance its corporate governance structure and strengthen the decision-making capabilities of its Board of Directors. This committee is tasked with overseeing the company’s financial disclosures, audit processes, and internal controls, ensuring compliance with various regulatory requirements. The formation of this committee is expected to improve transparency and protect investor interests, potentially enhancing the company’s reputation and trust among stakeholders.

The most recent analyst rating on (HK:0038) stock is a Buy 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. Enhances Governance with New Nomination Committee

First Tractor Company Limited has established a Nomination Committee to enhance its corporate governance structure. This committee is tasked with optimizing the Board of Directors’ composition by setting criteria for selecting directors and senior management, reviewing candidates, and making recommendations for appointments or dismissals. This move is expected to strengthen the company’s governance and operational efficiency, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:0038) stock is a Buy 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. Enhances Governance with New Remuneration Committee

First Tractor Company Limited has established a Remuneration Committee to enhance the performance assessment and remuneration management systems for its directors and senior management. This move aims to ensure a scientific and effective approach to evaluating and compensating key personnel, which could strengthen the company’s operational efficiency and governance.

The most recent analyst rating on (HK:0038) stock is a Buy 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 Forms Strategic Investment Committee to Boost Development

First Tractor Co has established a Strategic Investment and Sustainable Development Committee to enhance its strategic development, improve investment decision-making, and boost the effectiveness of major investment decisions. This committee, composed of directors including independent ones, will focus on medium and long-term development strategies, potentially impacting the company’s market positioning and operational efficiency.

The most recent analyst rating on (HK:0038) stock is a Buy 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. Implements Key Governance Changes at 2025 EGM

First Tractor Company Limited held its 2025 second extraordinary general meeting (EGM) on September 29, 2025, where significant corporate governance changes were approved. The meeting resulted in the abolition of the supervisory committee and amendments to the articles of association, reflecting a strategic shift in the company’s governance structure. These changes are expected to impact the company’s operational framework and may influence its market positioning by streamlining decision-making processes.

The most recent analyst rating on (HK:0038) stock is a Buy 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 Interim Dividend Plan

First Tractor Co announced its interim dividend distribution plan for 2025, proposing a cash dividend of RMB0.06844 per share. The company has outlined the process for determining eligible shareholders and the tax implications for non-resident enterprise shareholders, highlighting a 10% withholding tax requirement.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$8.50 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. Updates 2025 Interim Dividend Details

First Tractor Co. announced an update regarding its 2025 interim dividend, detailing the currency, exchange rate, and withholding tax implications for shareholders. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.075 per share, with specific tax arrangements for different types of shareholders, including a 10% withholding tax for non-resident enterprises and a 20% tax for Mainland individual investors. This announcement underscores the company’s commitment to shareholder returns while navigating complex tax regulations, potentially impacting investor relations and market positioning.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$8.50 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 Governance Changes at Upcoming EGM

First Tractor Company Limited has announced the convening of its second extraordinary general meeting in 2025, scheduled for September 29th in Luoyang, China. The meeting will address several key resolutions, including the abolition of the Supervisory Committee and amendments to the Articles of Association, Rules of Procedures for General and Board Meetings, and various corporate governance policies. These changes are aimed at streamlining the company’s governance structure and enhancing operational efficiency.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$8.50 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 Interim Results Presentation

First Tractor Company Limited is set to hold a presentation on its 2025 interim results to provide investors with a comprehensive understanding of its performance. The presentation will take place online on September 18, 2025, and will include key company figures such as the Chairman and Chief Financial Officer. This event aims to enhance transparency and engagement with investors by addressing their questions and concerns.

The most recent analyst rating on (HK:0038) stock is a Buy with a HK$8.50 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 Interim Dividend Plan

First Tractor Company Limited has announced an interim dividend distribution plan for 2025, declaring a dividend of RMB 0.06844 per share for the financial year ending 30 June 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may influence its market positioning by signaling financial stability and profitability.

The most recent analyst rating on (HK:0038) stock is a Buy 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 Announces 2025 Interim Dividend Plan

First Tractor Company Limited has announced its interim dividend distribution plan for 2025, declaring a cash dividend of RMB0.6844 per 10 shares. This distribution is based on a net profit of RMB769,040,000 for the first half of 2025, with a total proposed cash dividend of RMB76,900,000, representing 10% of the net profit attributable to the owners of the parent company. The plan is part of the company’s strategy to reward shareholders and maintain transparency in its financial operations, with adjustments to be made if there are changes in share capital due to repurchases.

The most recent analyst rating on (HK:0038) stock is a Buy 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. Revamps Governance Structure, Abolishes Supervisory Committee

First Tractor Company Limited has announced significant changes to its corporate governance structure by abolishing its Supervisory Committee. The company, which operates in the agricultural machinery industry, will transfer the responsibilities of the Supervisory Committee to the Audit Committee of the Board of Directors, in line with recent amendments to Chinese corporate law and stock exchange regulations. This move is part of a broader effort to enhance corporate governance and align with updated legal frameworks. The changes are expected to streamline operations and potentially improve oversight, impacting stakeholders by possibly increasing efficiency and accountability within the company.

The most recent analyst rating on (HK:0038) stock is a Buy 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 Reports Strong Interim Financial Results for 2025

First Tractor Co announced its interim financial results for the first half of 2025, reporting a total operating revenue of RMB6.93 billion and a net profit of RMB769 million. The results indicate a stable financial performance, reflecting the company’s strong market position in the agricultural machinery industry. The announcement highlights a robust financial standing, which may positively impact stakeholders’ confidence and the company’s strategic operations moving forward.

The most recent analyst rating on (HK:0038) stock is a Buy 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 Change in Share Registrar

First Tractor Company Limited has announced a change in its share registrar and transfer office for H shares, effective from September 1, 2025. This change to Computershare Hong Kong Investor Services Limited is expected to streamline the process for shareholders and potentially enhance the company’s operational efficiency in managing share transfers.

First Tractor Co. Schedules Board Meeting for Interim Results

First Tractor Company Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact shareholder returns and reflect the company’s financial health and strategic direction.