SEHK:38Machinery
First Tractor (SEHK:38) Margin Decline Challenges Bullish Growth Narrative Despite Forecast-Beating Outlook
First Tractor (SEHK:38) is expecting earnings to grow 17.6% per year, with revenue projected to expand by 9% annually. Both are outpacing Hong Kong market averages of 12.3% for earnings and 8.6% for revenue. The company’s net profit margin, however, has slipped from 8.4% last year to 7.5%, even as five-year earnings growth averaged a robust 18.7% per year. Despite these longer-term gains, the most recent period saw negative earnings growth, giving investors a mixed short-term view while...