Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$8.62, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Machinery industry in Hong Kong. Total returns to shareholders of 147% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$15.37 per share. Annuncio • Jun 30
First Tractor Company Limited to Report First Half, 2026 Results on Aug 26, 2026 First Tractor Company Limited announced that they will report first half, 2026 results on Aug 26, 2026 Declared Dividend • May 13
Dividend of CN¥0.20 announced Shareholders will receive a dividend of CN¥0.20. Ex-date: 4th June 2026 Payment date: 1st January 1970 Dividend yield will be 3.1%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 76% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annuncio • May 12
First Tractor Company Limited, Annual General Meeting, Jun 02, 2026 First Tractor Company Limited, Annual General Meeting, Jun 02, 2026, at 14:30 China Standard Time. Location: no. 154 jianshe road, luoyang, henan province, China Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: CN¥0.50 (vs CN¥0.47 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.50 (up from CN¥0.47 in 1Q 2025). Revenue: CN¥4.67b (up 2.5% from 1Q 2025). Net income: CN¥562.5m (up 6.2% from 1Q 2025). Profit margin: 12% (in line with 1Q 2025). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 28% per year, which means it is well ahead of earnings. Annuncio • Mar 30
First Tractor Company Limited to Report Q1, 2026 Results on Apr 29, 2026 First Tractor Company Limited announced that they will report Q1, 2026 results on Apr 29, 2026 Reported Earnings • Mar 27
Full year 2025 earnings released: EPS: CN¥0.72 (vs CN¥0.82 in FY 2024) Full year 2025 results: EPS: CN¥0.72 (down from CN¥0.82 in FY 2024). Revenue: CN¥10.8b (down 9.1% from FY 2024). Net income: CN¥812.0m (down 12% from FY 2024). Profit margin: 7.5% (down from 7.7% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$8.60, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Machinery industry in Hong Kong. Total returns to shareholders of 147% over the past three years. Annuncio • Dec 26
First Tractor Company Limited to Report Fiscal Year 2025 Results on Mar 27, 2026 First Tractor Company Limited announced that they will report fiscal year 2025 results on Mar 27, 2026 Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to HK$9.00, the stock trades at a trailing P/E ratio of 11.2x. Average forward P/E is 10x in the Machinery industry in Hong Kong. Total returns to shareholders of 192% over the past three years. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.20 (vs CN¥0.17 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.20 (up from CN¥0.17 in 3Q 2024). Revenue: CN¥2.77b (down 5.3% from 3Q 2024). Net income: CN¥225.2m (up 15% from 3Q 2024). Profit margin: 8.1% (up from 6.7% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Annuncio • Sep 30
First Tractor Company Limited to Report Q3, 2025 Results on Oct 29, 2025 First Tractor Company Limited announced that they will report Q3, 2025 results on Oct 29, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of HK$0.075 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 31 October 2025. Payout ratio is a comfortable 53% and this is well supported by cash flows. Trailing yield: 4.7%. Lower than top quartile of Hong Kong dividend payers (6.6%). Higher than average of industry peers (3.5%). New Risk • Sep 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Annuncio • Aug 29
First Tractor Company Limited Announces Interim Ordinary Dividend for the Financial Year End 30 June 2025 First Tractor Company Limited announced interim ordinary dividend of RMB 0.06844 per share for the Financial Year End 30 June 2025. Annuncio • Jun 30
First Tractor Company Limited to Report First Half, 2025 Results on Aug 29, 2025 First Tractor Company Limited announced that they will report first half, 2025 results on Aug 29, 2025 Upcoming Dividend • Jun 05
Upcoming dividend of CN¥0.30 per share Eligible shareholders must have bought the stock before 12 June 2025. Payment date: 29 August 2025. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 4.8%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.9%). Declared Dividend • May 14
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 12th June 2025 Payment date: 29th August 2025 Dividend yield will be 4.5%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is well covered by both earnings (39% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 28% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annuncio • May 09
First Tractor Company Limited, Annual General Meeting, Jun 10, 2025 First Tractor Company Limited, Annual General Meeting, Jun 10, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Luoyang, Henan China Reported Earnings • May 01
First quarter 2025 earnings released: EPS: CN¥0.47 (vs CN¥0.53 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.47 (down from CN¥0.53 in 1Q 2024). Revenue: CN¥4.56b (down 2.1% from 1Q 2024). Net income: CN¥529.5m (down 12% from 1Q 2024). Profit margin: 12% (down from 13% in 1Q 2024). Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 17% per year. Annuncio • Apr 10
First Tractor Company Limited Approves Board Committee Changes First Tractor Company Limited held the 34th meeting of the 9th session of the board of directors on 10 April 2025, during which the Proposal on the Adjustment of the Members of the Special Committees of the 9th Session of the Board of Directors was reviewed and approved. The board of directors agreed to appoint Ms. Wong Yee Man as a member of the Audit Committee and the Nomination Committee under the 9th session of the board of directors, and to appoint her as the chairman of the Audit Committee; and to appoint Mr. Xu Liyou as a member of the Remuneration Committee and to appoint him as the chairman. The terms of office of the aforesaid persons will expire on the date of the completion of the transition of the 9th session of the board of directors of the company. The adjustments, other members of the special committees under the 9th session of the board of directors of the company will remain unchanged. Annuncio • Mar 28
First Tractor Company Limited to Report Q1, 2025 Results on Apr 29, 2025 First Tractor Company Limited announced that they will report Q1, 2025 results on Apr 29, 2025 Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: CN¥0.82 (vs CN¥0.89 in FY 2023) Full year 2024 results: EPS: CN¥0.82 (down from CN¥0.89 in FY 2023). Revenue: CN¥11.9b (up 3.2% from FY 2023). Net income: CN¥922.0m (down 7.5% from FY 2023). Profit margin: 7.7% (down from 8.6% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Annuncio • Feb 07
First Tractor Company Limited Elects Zhao Weilin as Non-Independent Director First Tractor Company Limited at the EGM held on, 7 February 2025, at the EGM, Mr. Zhao Weilin ("Mr. Zhao") was elected as a non-independent Director of the ninth session of the Board of the Company. His term of office will commence on the date of approval by the EGM and end on the date of expiry of the term of office of the ninth session of the Board. Reference is made to the announcement of the Company dated 8 January 2025 in relation to the resignation of Mr. Li Xiaoyu ("Mr. Li") from his positions as a Director and the chairman of the ninth session of the Board of the Company, the chairman of the Strategy, Investment and Sustainable Development Committee, and a member of the Nomination Committee. As disclosed in the Announcement, the resignation of Mr. Li was to take effect upon the election of a new director at a general meeting of the Company. In light of Mr. Zhao's election as a Director at the EGM, the resignation of Mr. Li became effective from the date of the EGM. The Board further announced that Mr. Zhao was elected as the chairman of the ninth session of the Board and the legal representative at the 32nd meeting of the ninth session of the Board of the Company held on the same day, and he will also serve as a member and the chairman of the Strategy, Investment and Sustainable Development Committee of the Board and a member of the Nomination Committee of the Board. These positions will take effect from the date of approval by the Board and will end upon the expiry of the term of office of the ninth session of the Board. Annuncio • Jan 08
First Tractor Company Limited Announces Resignation of Li Xiaoyu as Chairman First Tractor Company Limited announced resignation from Mr. Li Xiaoyu on 8 January 2025. Due to work reassignment, Mr. Li submitted his resignation from his positions as a director of the ninth session of the Board and the chairman of the Company, the chairman of the Strategy, Investment and Sustainable Development Committee, and a member of the Nomination Committee. His resignation will take effect upon the election of a new director at a general meeting of the Company. Mr. Li confirmed that he has no disagreement with the Board and there are no other matters relating to his resignation that need to be brought to the attention of the shareholders of the Company. Annuncio • Dec 30
First Tractor Company Limited Appoints Wong Yee Man as Independent Non-Executive Director First Tractor Company Limited at its EGM held on December 30, 2024, Ms. Wong Yee Man (Ms. Wong) was elected as an independent non-executive Director of the ninth session of the Board of the Company. Ms. WONG Yee Man, aged 36, is a Certified Public Accountant, a Certified ESG Analyst (CESGA), and a practicing accountant with the Hong Kong Institute of Certified Public
Accountants. She is currently employed at PAL Advisory Limited. Ms. Wong holds a Bachelor of Business Administration in Accounting and a Bachelor of Laws. Ms. Wong has a wealth of experience in accounting, auditing, and compliance management.
She has held several senior positions, including Manager at KPMG, Senior Consultant at FTI Consulting Inc., Compliance Consultant at Reg Advisory Limited, Manager of the Compliance Monitoring and Central Compliance Department at Invesco Investment
Management Co. Ltd., and Manager of the Intermediaries Supervision Department at the Securities & Futures Commission of Hong Kong. Annuncio • Dec 27
First Tractor Company Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 First Tractor Company Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 Annuncio • Dec 18
First Tractor Company Limited Appoints Liu Bin as Chief Financial Officer First Tractor Company Limited convened the 29th meeting of its ninth session of board of directors on 16 December 2024, during which the Proposal on the Appointment of the Company's Chief Financial Officer was reviewed and approved. In accordance with the relevant provisions of the Company Law and the Articles of Association, the Board resolved to appoint Mr. Liu Bin ("Mr. Liu") as the Company's Chief Financial Officer, following his nomination by the General Manager of the Company and subsequent
review and approval by both the nomination committee and the audit committee of the Board. This appointment shall take effect from the date of approval by the Board and remain in force until the expiration of the term of the ninth session of the Board. Mr. Liu Bin, aged 49, holds a Bachelor's degree in Accounting, is a Senior Accountant and a Certified Public Accountant. He is currently a member of the Standing Committee of the Party Committee of YTO Group Corporation. Mr. Liu has previously served as the Financial Director of Linhai Co. Ltd., the Financial Director of Luoyang Bearing Science & Technology Co. Ltd. and the Financial Director and Party Committee Member of Sinomach Precision Group Co. Ltd. He has extensive experience in financial management and other related fields. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.17 (vs CN¥0.29 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.17 (down from CN¥0.29 in 3Q 2023). Revenue: CN¥2.93b (down 2.4% from 3Q 2023). Net income: CN¥195.6m (down 41% from 3Q 2023). Profit margin: 6.7% (down from 11% in 3Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Oct 08
Now 22% undervalued Over the last 90 days, the stock has risen 28% to HK$8.51. The fair value is estimated to be HK$10.95, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 34%. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$9.78, the stock trades at a trailing P/E ratio of 8.7x. Average forward P/E is 9x in the Machinery industry in Hong Kong. Total returns to shareholders of 181% over the past three years. Annuncio • Sep 30
First Tractor Company Limited to Report Q3, 2024 Results on Oct 30, 2024 First Tractor Company Limited announced that they will report Q3, 2024 results on Oct 30, 2024 Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: CN¥0.27 (vs CN¥0.24 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.27 (up from CN¥0.24 in 2Q 2023). Revenue: CN¥3.15b (up 3.2% from 2Q 2023). Net income: CN¥306.0m (up 14% from 2Q 2023). Profit margin: 9.7% (in line with 2Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Aug 12
Now 20% overvalued Over the last 90 days, the stock has fallen 21% to HK$7.19. The fair value is estimated to be HK$5.99, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 26% in the next 2 years. Annuncio • Aug 03
First Tractor Company Limited Approves Board Appointments First Tractor Company Limited announced that at the twenty-second meeting of the ninth session of the Board held on 2 August 2024, the "Resolution on the Election of the Chairman of the Ninth Session of the Board of the Company" and the "Resolution on the Addition of Members to the Special Committees of the Ninth Session of the Board of the Company" were considered and approved. All Directors unanimously agreed to elect Mr. Li Xiaoyu as the chairman of the ninth session of the Board of the Company and the chairman of the Strategy, Investment and Sustainable Development Committee of the Board and a member of the Nomination Committee of the Board; and agreed to add Mr. Wei Tao as a member of the Strategy, Investment and Sustainable Development Committee of the Board, Mr. Yang Jianhui as a member of the Remuneration Committee of the Board and Mr. Miao Yu as a member of the Audit Committee of the Board. The term of office of the aforesaid persons shall commence on the date of consideration and approval by the Board and end on the date of expiry of the ninth session of the Board. After the completion of this addition, the composition of the special committees of the ninth session of the Board of the Company is as follows: Strategy, Investment and Sustainable Development Committee: Li Xiaoyu (Chairman), Wei Tao, Fang Xianfa, Xu Liyou; Audit Committee: Edmund Sit (Chairman), Miao Yu, Xu Liyou; Nomination Committee: Wang Shumao (Chairman), Li Xiaoyu, Edmund Sit; Remuneration Committee: Edmund Sit (Chairman), Yang Jianhui, Wang Shumao. Annuncio • Jun 29
First Tractor Company Limited to Report First Half, 2024 Results on Aug 29, 2024 First Tractor Company Limited announced that they will report first half, 2024 results on Aug 29, 2024 Annuncio • May 30
First Tractor Company Limited Approves Final Ordinary for the Financial Year End 31 December 2023, Payable on July 5, 2024 First Tractor Company Limited approved Final Ordinary of HKD 0.352 per share for the financial year end 31 December 2023. Ex-dividend date 31 May 2024, Record date 07 June 2024 and Payment date 05 July 2024. Upcoming Dividend • May 24
Upcoming dividend of CN¥0.32 per share Eligible shareholders must have bought the stock before 31 May 2024. Payment date: 31 July 2024. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of Hong Kong dividend payers (7.5%). Higher than average of industry peers (3.1%). Reported Earnings • Apr 26
First quarter 2024 earnings released First quarter 2024 results: Revenue: CN¥4.66b (up 11% from 1Q 2023). Net income: CN¥599.4m (up 23% from 1Q 2023). Profit margin: 13% (up from 12% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Machinery industry in Hong Kong. Declared Dividend • Apr 26
Dividend of CN¥0.32 announced Shareholders will receive a dividend of CN¥0.32. Ex-date: 31st May 2024 Payment date: 31st July 2024 Dividend yield will be 3.9%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is well covered by both earnings (36% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 59% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annuncio • Apr 26
First Tractor Company Limited, Annual General Meeting, May 29, 2024 First Tractor Company Limited, Annual General Meeting, May 29, 2024, at 14:30 China Standard Time. Location: No. 154 Jianshe Road Luoyang Henan Province China Agenda: To consider and approve the report of the board of directors (the "Board") of the Company for the year 2023; to consider and approve the work report of the Independent Directors of the Company for the year 2023; to consider and approve the work report of the supervisory committee of the Company for the year 2023; to consider and approve the audited financial report of the Company for the year 2023; to consider and approve the annual report of the Company for the year 2023; to consider and approve the profit distribution plan of the Company for the year ended 31 December 2023; to consider and approve the re-appointment of ShineWing Certified Public Accountants LLP as the auditor of the Company's financial report and the internal control auditor for the year 2024, and to authorize the Board of the Company to decide its remuneration; and to transact other matters. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$7.18, the stock trades at a trailing P/E ratio of 7.5x. Average forward P/E is 8x in the Machinery industry in Hong Kong. Total returns to shareholders of 139% over the past three years. Annuncio • Mar 29
First Tractor Company Limited to Report Q1, 2024 Results on Apr 26, 2024 First Tractor Company Limited announced that they will report Q1, 2024 results on Apr 26, 2024 Annuncio • Mar 28
First Tractor Company Limited Proposes Final Dividend for the Financial Year End 31 December 2023, Payable on 31 July 2024 First Tractor Company Limited proposed final dividend of RMB 0.3194 per share for the financial year end 31 December 2022. Payment date 31 July 2024. Reported Earnings • Mar 28
Full year 2023 earnings released: EPS: CN¥0.89 (vs CN¥0.61 in FY 2022) Full year 2023 results: EPS: CN¥0.89 (up from CN¥0.61 in FY 2022). Revenue: CN¥11.5b (down 8.2% from FY 2022). Net income: CN¥997.0m (up 46% from FY 2022). Profit margin: 8.6% (up from 5.4% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$7.22, the stock trades at a trailing P/E ratio of 7.7x. Average forward P/E is 7x in the Machinery industry in Hong Kong. Total returns to shareholders of 133% over the past three years. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$5.96, the stock trades at a trailing P/E ratio of 6.3x. Average forward P/E is 8x in the Machinery industry in Hong Kong. Total returns to shareholders of 100% over the past three years. Annuncio • Jan 29
First Tractor Company Limited Provides Earnings Guidance for the Year Ended 31 December 2023 First Tractor Company Limited provided earnings guidance for the year ended 31 December 2023. For the year, the company expects to record a net profit of RMB 920 million to RMB 1,020 million attributable to owners of the parent company for the year 2023, representing an increase of RMB 239 million to RMB 339 million as compared with the corresponding period last year, or a year-on-year increase of 35.09% to 49.77%. It is expected that the net profit attributable to the owners of the parent company after deducting non-recurring profit or loss is to be RMB 836 million to RMB 936 million for the year 2023, representing an increase of RMB 65 million to RMB 165 million as compared with the corresponding period last year, or a year-on-year increase of 8.37% to 21.33%. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$4.60, the stock trades at a trailing P/E ratio of 4.9x. Average forward P/E is 7x in the Machinery industry in Hong Kong. Total returns to shareholders of 39% over the past three years. Annuncio • Dec 29
First Tractor Company Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 First Tractor Company Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.29 (vs CN¥0.19 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.29 (up from CN¥0.19 in 3Q 2022). Revenue: CN¥3.00b (down 19% from 3Q 2022). Net income: CN¥331.0m (up 55% from 3Q 2022). Profit margin: 11% (up from 5.8% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Annuncio • Oct 24
First Tractor Company Limited Announces Changes of directorate Due to work adjustment, Mr. Liu Jiguo, the Chairman of First Tractor Company Limited has submitted a written report to the Board of the Company and applied to resign as the General Manager of the Company but he will continue to serve as the chairman of the Board, the chairman of the Strategy, Investment and Sustainable Development Committee of the Board and a member of the Nomination Committee of the Board of the Company. In order to ensure a normal and stable operation of the Company's production and operations, the Company held the fourteenth meeting of the Ninth Session of the Board of Directors on 23 October 2023, in which the "Resolution in relation to the Appointment of the Company's General Manager and the Nomination of Director Candidate" was considered and passed. Upon the nomination by the Chairman and the qualification and approval of the Nomination Committee of the Board, the Board agreed and appointed Mr. Wei Tao (whose biography is set out in the Appendix) as the Company's General Manager, with a term of office commencing from the date of the consideration and approval by the Board and expiring upon the expiry ofthe Ninth Session of the Board of Directors. In addition, the Board of the Company has also nominated Mr. Wei Tao as a director candidate of the Ninth Session of the Board of Directors. The independent directors of the Company expressed their concurring independent opinions on the matter: the consideration and voting procedures in respect of this nomination and appointment were in compliance with the relevant laws, regulations and the Company 's articles of association, and Mr. Wei Tao possesses the professionalism and capabilities required for performing the task, which fufilled the qualifications for the appointment as stipulated in the Company Law and other laws and regulations as well as the Company's articles of association.Mr. Wei Tao, aged 43, senior engineer, currently serves as the General Manager of the Company and the Deputy Secretary of the Party Committee of YTO Group Corporation. Mr. Wei joined YTO Group Corporation in 2003, successively served as deputy director of the Third Assembly Plant, the deputy head of Quality Engineering Center, the deputy head of the Technology Development Department of the Company and the head of the QualityDepartment, the head of the Human Resources Department and the General Manager Assistant and Deputy General Manager of the Company. Mr. Wei graduated from Northeast Agricultural University with a Bachelor degree in engineering. He has extensive experience in production and manufacturing, technical quality management, cadre and human resource management, etc. If Mr. Wei is appointed as a director of the Company, he will enter into a service contract with the Company for a term commencing from the date of approval by the shareholders at the extraordinary general meeting to the expiry of the term of the Ninth Session of the Board of Directors. As the general manager and an executive director of the Company, Mr. Wei will receive remuneration from the Company in accordance with the relevant performance and Remuneration Management Policy for senior management of the Company. The pension insurance, unemployment insurance, medical insurance and other social insurance and housing provident funds of Mr. Wei will be implemented in accordance with relevant national requirements. Annuncio • Sep 30
First Tractor Company Limited to Report Q3, 2023 Results on Oct 28, 2023 First Tractor Company Limited announced that they will report Q3, 2023 results on Oct 28, 2023 Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.24 (vs CN¥0.09 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.24 (up from CN¥0.09 in 2Q 2022). Revenue: CN¥3.05b (up 28% from 2Q 2022). Net income: CN¥268.4m (up 166% from 2Q 2022). Profit margin: 8.8% (up from 4.2% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Annuncio • Jun 28
First Tractor Company Limited to Report First Half, 2023 Results on Aug 29, 2023 First Tractor Company Limited announced that they will report first half, 2023 results on Aug 29, 2023 Annuncio • Jun 07
First Tractor Company Limited Approves Dividend for the Financial Year Ended 31 December 2022, Payable on 06 July 2023 First Tractor Company Limited approves dividend of RMB 0.2257 per share for the financial year ended 31 December 2022, payable on 06 July 2023. Record date 15 June 2023 and Ex-dividend date 08 June 2023. Upcoming Dividend • Jun 01
Upcoming dividend of CN¥0.23 per share at 6.6% yield Eligible shareholders must have bought the stock before 08 June 2023. Payment date: 31 July 2023. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 6.6%. Lower than top quartile of Hong Kong dividend payers (7.9%). Higher than average of industry peers (2.7%). Reported Earnings • Mar 30
Full year 2022 earnings released: EPS: CN¥0.61 (vs CN¥0.39 in FY 2021) Full year 2022 results: EPS: CN¥0.61 (up from CN¥0.39 in FY 2021). Revenue: CN¥12.6b (up 35% from FY 2021). Net income: CN¥681.1m (up 55% from FY 2021). Profit margin: 5.4% (up from 4.7% in FY 2021). Revenue is forecast to grow 2.5% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Machinery industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 4 experienced directors. No highly experienced directors. Supervisor Yang Kun is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 30
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: CN¥3.69b (up 42% from 3Q 2021). Net income: CN¥326.0m (up 107% from 3Q 2021). Profit margin: 8.8% (up from 6.1% in 3Q 2021). The increase in margin was driven by higher revenue. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.09 (vs CN¥0.11 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.09 (down from CN¥0.11 in 2Q 2021). Revenue: CN¥2.38b (flat on 2Q 2021). Net income: CN¥100.8m (down 18% from 2Q 2021). Profit margin: 4.2% (down from 5.2% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Board Change • Jun 01
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 4 experienced directors. No highly experienced directors. Supervisor Yang Kun is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Upcoming Dividend • May 10
Upcoming dividend of CN¥0.12 per share Eligible shareholders must have bought the stock before 17 May 2022. Payment date: 31 July 2022. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Hong Kong dividend payers (7.8%). In line with average of industry peers (3.7%). Board Change • May 02
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 6 experienced directors. No highly experienced directors. Supervisor Yang Kun is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.43 (up from CN¥0.36 in 1Q 2021). Revenue: CN¥4.25b (up 31% from 1Q 2021). Net income: CN¥480.6m (up 24% from 1Q 2021). Profit margin: 11% (in line with 1Q 2021). Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 51%. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 31
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.39 (up from CN¥0.28 in FY 2020). Revenue: CN¥9.33b (up 23% from FY 2020). Net income: CN¥438.2m (up 56% from FY 2020). Profit margin: 4.7% (up from 3.7% in FY 2020). Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 51%. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 25% share price gain to HK$3.76, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 11x in the Machinery industry in Hong Kong. Total returns to shareholders of 87% over the past three years. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.14 (vs CN¥0.16 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: CN¥2.60b (up 11% from 3Q 2020). Net income: CN¥157.8m (up 2.2% from 3Q 2020). Profit margin: 6.1% (down from 6.6% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.13 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥2.38b (up 18% from 2Q 2020). Net income: CN¥123.1m (down 1.4% from 2Q 2020). Profit margin: 5.2% (down from 6.2% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥3.87, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 16x in the Machinery industry in Hong Kong. Total returns to shareholders of 53% over the past three years. Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥5.31, the stock trades at a trailing P/E ratio of 9.5x. Average trailing P/E is 16x in the Machinery industry in Hong Kong. Total returns to shareholders of 108% over the past three years. Executive Departure • Jun 16
Vice Chairman Jibo Cai has left the company On the 9th of June, Jibo Cai's tenure as Vice Chairman ended after 2.1 years in the role. We don't have any record of a personal shareholding under Jibo's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 2.25 years.