SEHK:38Machinery
First Tractor (SEHK:38) Stock Sees Revenue Strength Clash With Softer Earnings
First Tractor stock has quietly added 12.8% over the past three months and now trades at HK$9.19. The headline from this quarter is not the share price move. It is the pressure on profitability that is starting to test investor conviction.
Q2 net income of ¥219.8m on revenue of ¥3.2b left the trailing net margin sitting at about 7%, only slightly below last year but crucial for a capital intensive machinery maker. The market is being asked to decide whether this margin squeeze is a small...