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First Tractor Co (0038) AI Stock Analysis
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First Tractor Co
(HKEX:0038)
The score is held up by solid financial performance—especially strong recent free cash flow—and a reasonable valuation with a ~4% dividend yield. However, the stock’s technical picture is the main drag, with price below key moving averages and bearish momentum signals indicating a pronounced downtrend.
First Tractor Co (0038) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.84B
- Dividend Yield
- 4.03%
- Average Volume (3M)
- 3.35M
- Price to Earnings (P/E)
- 17.0
- Beta (1Y)
- 0.65
- Revenue Growth
- 18.38%
- EPS Growth
- 14.26%
- Country
- Hong Kong
- Employees
- 7,011
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Agricultural - Machinery
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, Powe...
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), a...
First Tractor Co Financial Statement Overview
Summary
Financials are solid but not best-in-cycle: TTM revenue returned to modest growth (+3.3%) and profitability is steady, though net margin (~7.2%) is below stronger 2023–2024 levels. Balance sheet remains reasonable but leverage has increased (debt-to-equity ~0.55), raising sensitivity to any further margin pressure. Cash flow is the key strength with strong TTM free cash flow (~2.09B) and growth (+30.1%), despite historical volatility.
Income Statement
67PositiveBalance Sheet
62PositiveCash Flow
74Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.10B | 10.82B | 11.90B | 11.53B | 12.56B | 9.33B |
| Gross Profit | 1.84B | 1.60B | 1.76B | 1.81B | 1.96B | 1.60B |
| EBITDA | 980.00M | 938.62M | 1.17B | 1.35B | 1.10B | 679.00M |
| Net Income | 866.98M | 811.95M | 922.02M | 997.02M | 681.05M | 433.34M |
Balance Sheet | ||||||
| Total Assets | 19.09B | 15.10B | 14.69B | 13.82B | 12.99B | 12.34B |
| Cash, Cash Equivalents and Short-Term Investments | 3.94B | 5.80B | 3.77B | 3.63B | 5.61B | 4.28B |
| Total Debt | 4.59B | 3.04B | 305.32M | 2.39B | 362.29M | 607.18M |
| Total Liabilities | 10.09B | 6.87B | 6.91B | 6.60B | 6.49B | 6.36B |
| Stockholders Equity | 8.41B | 7.66B | 7.26B | 6.69B | 5.96B | 5.40B |
Cash Flow | ||||||
| Free Cash Flow | 2.09B | 840.26M | 1.10B | 967.16M | 3.51B | 514.43M |
| Operating Cash Flow | 2.50B | 1.03B | 1.22B | 1.06B | 3.60B | 582.28M |
| Investing Cash Flow | -2.56B | -1.19B | -1.32B | -2.01B | -2.10B | 272.58M |
| Financing Cash Flow | -13.59M | -279.45M | -336.17M | -346.34M | -140.53M | -119.91M |
First Tractor Co Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0038, the sentiment is Neutral. The current price of 7.55 is below the 20-day moving average (MA) of 7.91, below the 50-day MA of 8.58, and below the 200-day MA of 8.37, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 14.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0038.
First Tractor Co Peers Comparison
Overall Rating
HK:333976Outperform
HK:380869Neutral
HK:063161Neutral- HK:003859Neutral
HK:115752Neutral
HK:084038Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:3339 | 76Outperform | HKD 11.98B | 7.20 | 12.47% | 7.14% | 21.86% | 25.46% |
| HK:3808 | 69Neutral | HKD 86.03B | 9.18 | 17.17% | 6.61% | 38.33% | 37.12% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| HK:0631 | 61Neutral | HKD 21.48B | 10.84 | 12.81% | 5.36% | 19.07% | 29.20% |
| HK:0038 | 59Neutral | HKD 14.38B | 16.97 | 10.71% | 4.03% | 18.38% | 14.26% |
| HK:1157 | 52Neutral | HKD 57.01B | 13.09 | 6.73% | 8.95% | 22.97% | 6.24% |
| HK:0840 | 38Underperform | HKD 81.56M | -1.77 | -11.88% | ― | 40.38% | 44.68% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0038 | First Tractor Co Class H | 7.55 | -0.10 | -1.27% | |
| HK:3339 | Lonking Holdings | 2.80 | -0.12 | -4.24% | |
| HK:3808 | Sinotruk Hong Kong | 31.16 | 5.66 | 22.20% | |
| HK:0631 | Sany Heavy Equipment International Holdings Co | 6.53 | -0.39 | -5.69% | |
| HK:1157 | Zoomlion Heavy Industry Science & Technology Co Class H | 4.99 | -2.18 | -30.39% | |
| HK:0840 | Xinjiang Tianye Water Saving Irrigation System Co., Ltd. Class H | 0.16 | -0.06 | -27.65% |
First Tractor Co Corporate Events
First Tractor Issues Unaudited 2026 Third-Quarter Report With Assurance on Disclosure Quality
First Tractor Company Limited has released its unaudited third-quarter report for 2026, with the board, directors and senior management collectively affirming the truthfulness, accuracy and completeness of the financial disclosures. The company’...
First Tractor to Host Online Briefing on Q3 2026 Results
First Tractor Company Limited has scheduled an online presentation of its third-quarter 2026 results to deepen investor understanding of its operating performance and financial position. The move underscores the company’s efforts to maintain tr...
First Tractor Opposes Leasing Merger Terms and Demands Equity Repurchase
First Tractor has disclosed developments surrounding a proposed merger by absorption between its investee BOL Financial Leasing and AB Leasing, under which AB Leasing would issue new shares to acquire all of BOL Financial Leasing and deregister the t...
First Tractor Sets Board Meeting to Approve Nine-Month Unaudited Results
First Tractor Company Limited, a Hong Kong-listed agricultural machinery maker based in Luoyang, focuses on tractors and related farm equipment for domestic and overseas markets. The company operates under a conventional listed-company governance mod...
First Tractor Confirms 2026 Interim Dividend and H-Share Tax Treatment
First Tractor Company Limited has confirmed its 2026 interim dividend plan, declaring a cash payout of RMB0.06962 per share, with the H-share dividend translated into approximately HK$0.08 per share before tax. The company has set 9 October 2026 as t...
First Tractor sets interim cash dividend and clarifies H-share tax treatment
First Tractor Company Limited has declared an interim ordinary cash dividend of RMB 0.06962 per share for the six months ended 30 June 2026, with Hong Kong holders to receive HKD 0.08 per share based on an exchange rate of RMB 1 to HKD 1.15594. The e...
First Tractor to Host Live Investor Briefing on 2026 Interim Results
First Tractor Company Limited will host a live investor presentation on its 2026 interim results on 9 September 2026 via the Shanghai Stock Exchange SSE Roadshow Centre, combining video streaming with online interaction. Senior management, including...
First Tractor posts solid interim profit as working capital mix shifts
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 RM...
First Tractor Co. Formalizes Connected Factoring Deal With Sinomach Unit
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 oper...
First Tractor Sets 10% Interim Dividend Payout for 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, i...
First Tractor Declares Interim Dividend for First Half of 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, ind...
First Tractor flags RMB95.8m fair value hit to interim profit
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 mainl...
First Tractor Sets August Board Meeting to Approve Interim Results and Dividend Plan
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 cou...
First Tractor Gains Strong Shareholder Backing at 2026 Extraordinary Meetings
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 by...
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.
Date of analysis: Oct 31, 2026