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First Tractor

SEHK:38
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
38
SEHK
HK$6B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

First Tractor Company Limited engages in the research and development, manufacture, and sale of agricultural and power machinery, and related spare parts. The last earnings update was 85 days ago. More info.


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38 Share Price and Events
7 Day Returns
3.9%
SEHK:38
-0.5%
HK Machinery
-0.7%
HK Market
1 Year Returns
-26.3%
SEHK:38
8.5%
HK Machinery
-5.7%
HK Market
38 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
First Tractor (38) 3.9% -6% -9.6% -26.3% -54.5% -68.9%
HK Machinery -0.5% -1.6% -8.8% 8.5% 58.1% 38.3%
HK Market -0.7% -0.9% -8.1% -5.7% 16.3% -0.3%
1 Year Return vs Industry and Market
  • 38 underperformed the Machinery industry which returned 8.5% over the past year.
  • 38 underperformed the Market in Hong Kong which returned -5.7% over the past year.
Price Volatility
38
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for First Tractor's competitors could be found in our database.

38 Value

 Is First Tractor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of First Tractor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for First Tractor.

SEHK:38 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:38
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.083 (1 + (1- 25%) (77.43%))
1.477
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.48
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.477 * 5.96%)
10.81%

Discounted Cash Flow Calculation for SEHK:38 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for First Tractor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:38 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 10.81%)
2020 145.14 Est @ -39.08% 130.98
2021 106.31 Est @ -26.75% 86.58
2022 87.04 Est @ -18.13% 63.98
2023 76.52 Est @ -12.09% 50.76
2024 70.50 Est @ -7.86% 42.21
2025 67.05 Est @ -4.9% 36.23
2026 65.15 Est @ -2.83% 31.77
2027 64.25 Est @ -1.38% 28.27
2028 64.02 Est @ -0.37% 25.42
2029 64.24 Est @ 0.35% 23.02
Present value of next 10 years cash flows CN¥519.22
SEHK:38 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥64.24 × (1 + 2%) ÷ (10.81% – 2%)
CN¥744.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥744.37 ÷ (1 + 10.81%)10
CN¥266.80
SEHK:38 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥519.22 + CN¥266.80
CN¥786.02
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥786.02 / 985.85
CN¥0.8
SEHK:38 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:38)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥0.8 x 1.135
HK$0.9
Value per share (HKD) From above. HK$0.90
Current discount Discount to share price of HK$1.88
= -1 x (HK$1.88 - HK$0.90) / HK$0.90
-107.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of First Tractor is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for First Tractor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are First Tractor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:38 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥-1.32
SEHK:38 Share Price ** SEHK (2019-07-23) in HKD HK$1.88
SEHK:38 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥1.66
Hong Kong Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 8.69x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of First Tractor.

SEHK:38 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:38 Share Price ÷ EPS (both in CNY)

= 1.66 ÷ -1.32

-1.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First Tractor is loss making, we can't compare its value to the HK Machinery industry average.
  • First Tractor is loss making, we can't compare the value of its earnings to the Hong Kong market.
Price based on expected Growth
Does First Tractor's expected growth come at a high price?
Raw Data
SEHK:38 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
59.5%per year
Hong Kong Machinery Industry PEG Ratio Median Figure of 13 Publicly-Listed Machinery Companies 0.69x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for First Tractor, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on First Tractor's assets?
Raw Data
SEHK:38 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥4.10
SEHK:38 Share Price * SEHK (2019-07-23) in HKD HK$1.88
SEHK:38 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥1.66
Hong Kong Machinery Industry PB Ratio Median Figure of 50 Publicly-Listed Machinery Companies 0.98x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:38 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:38 Share Price ÷ Book Value per Share (both in CNY)

= 1.66 ÷ 4.10

0.4x

* Primary Listing of First Tractor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First Tractor is good value based on assets compared to the HK Machinery industry average.
X
Value checks
We assess First Tractor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. First Tractor has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

38 Future Performance

 How is First Tractor expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover First Tractor, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
59.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is First Tractor expected to grow at an attractive rate?
  • First Tractor's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • First Tractor's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare First Tractor's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:38 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:38 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 59.5%
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:38 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:38 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:38 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 5,464 440 -1,303
2018-12-31 5,682 -384 -1,300
2018-09-30 6,171 -302 -414
2018-06-30 6,675 -89 -121
2018-03-31 7,027 -868 40
2017-12-31 7,358 -556 57
2017-09-30 7,520 187 51
2017-06-30 7,975 657 104
2017-03-31 8,484 1,525 201
2016-12-31 8,869 2,093 230
2016-09-30 8,774 1,451 174
2016-06-30 9,106 869 145

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • First Tractor's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if First Tractor is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:38 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from First Tractor Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:38 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:38 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 -1.32
2018-12-31 -1.32
2018-09-30 -0.42
2018-06-30 -0.12
2018-03-31 0.04
2017-12-31 0.06
2017-09-30 0.05
2017-06-30 0.10
2017-03-31 0.20
2016-12-31 0.23
2016-09-30 0.17
2016-06-30 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if First Tractor will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess First Tractor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
First Tractor has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

38 Past Performance

  How has First Tractor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare First Tractor's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • First Tractor does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare First Tractor's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare First Tractor's 1-year growth to the HK Machinery industry average as it is not currently profitable.
Earnings and Revenue History
First Tractor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from First Tractor Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:38 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,464.03 -1,303.10 1,160.04 368.50
2018-12-31 5,681.55 -1,300.11 1,203.61 378.39
2018-09-30 6,170.62 -413.86 899.57 274.08
2018-06-30 6,674.59 -120.73 769.81 468.03
2018-03-31 7,026.88 40.43 803.68 468.03
2017-12-31 7,357.94 56.51 910.03 386.34
2017-09-30 7,520.38 51.30 977.92 282.71
2017-06-30 7,975.23 103.64 1,245.38
2017-03-31 8,483.92 201.28 1,275.62
2016-12-31 8,869.27 229.72 1,304.46
2016-09-30 8,773.94 173.64 1,400.71
2016-06-30 9,106.08 145.03 1,315.36
2016-03-31 9,663.44 137.10 1,438.76
2015-12-31 9,655.49 135.32 1,438.65
2015-09-30 9,504.54 248.95 1,425.05
2015-06-30 9,261.59 203.91 1,484.90
2015-03-31 8,990.39 159.34 1,393.47
2014-12-31 9,026.98 167.70 1,424.96
2014-09-30 9,687.40 105.80 1,405.79
2014-06-30 9,897.01 153.28 1,415.70
2014-03-31 11,053.46 218.36 1,409.75
2013-12-31 11,057.84 227.08 1,320.84
2013-09-30 11,195.20 257.91 1,189.53
2013-06-30 11,451.74 249.75 1,151.77
2013-03-31 11,086.89 294.39 1,077.04
2012-12-31 11,508.04 324.96 1,059.85
2012-09-30 11,735.76 443.67 1,054.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if First Tractor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if First Tractor has efficiently used its assets last year compared to the HK Machinery industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if First Tractor improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess First Tractor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
First Tractor has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

38 Health

 How is First Tractor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up First Tractor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • First Tractor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • First Tractor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of First Tractor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from First Tractor Company Filings, last reported 3 months ago.

SEHK:38 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,691.88 3,892.50 2,660.04
2018-12-31 4,656.08 3,714.96 4,251.27
2018-09-30 5,561.16 3,889.80 2,948.82
2018-06-30 5,814.87 3,267.63 3,558.90
2018-03-31 5,464.86 3,920.04 2,695.91
2017-12-31 5,438.98 4,531.87 4,408.58
2017-09-30 5,492.91 2,494.23 2,851.29
2017-06-30 5,469.31 3,048.74 3,040.79
2017-03-31 5,570.95 2,306.51 2,605.77
2016-12-31 5,503.64 3,353.54 4,123.42
2016-09-30 5,554.94 3,210.13 2,792.10
2016-06-30 5,475.00 3,194.85 2,779.23
2016-03-31 5,483.55 3,469.06 2,051.43
2015-12-31 5,398.58 3,827.58 2,779.83
2015-09-30 5,477.91 3,304.81 2,162.41
2015-06-30 5,432.76 3,296.40 2,814.20
2015-03-31 5,405.64 3,364.92 2,384.25
2014-12-31 5,320.83 3,551.74 2,407.32
2014-09-30 5,267.15 3,032.87 1,774.91
2014-06-30 5,263.56 2,604.38 1,777.59
2014-03-31 5,315.44 2,144.59 1,501.28
2013-12-31 5,257.52 2,516.40 2,257.00
2013-09-30 5,212.36 2,323.13 2,096.41
2013-06-30 5,151.69 2,050.12 2,097.47
2013-03-31 5,190.80 1,435.32 2,044.87
2012-12-31 4,942.57 1,428.74 2,275.30
2012-09-30 4,961.91 1,392.32 1,675.08
  • First Tractor's level of debt (83%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40.4% vs 83% today).
  • Debt is not well covered by operating cash flow (11.3%, less than 20% of total debt).
  • Unable to confirm if the interest payments on First Tractor's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess First Tractor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. First Tractor has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

38 Dividends

 What is First Tractor's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from First Tractor dividends.
If you bought HK$2,000 of First Tractor shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate First Tractor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate First Tractor's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:38 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 3.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:38 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SEHK:38 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-10-26 0.000 0.000
2018-08-29 0.000 0.000
2018-04-25 0.000 0.000
2018-03-29 0.000 0.000
2017-06-14 0.057 1.932
2016-03-29 0.041 1.094
2015-06-01 0.051 1.255
2014-07-03 0.060 1.298
2013-06-06 0.100 2.521
2012-10-30 0.000 0.000
2012-08-27 0.000 0.000
2012-07-16 0.000 0.000
2011-08-15 0.000 0.000
2011-04-27 0.400 4.998
2011-03-25 0.200 2.330
2010-08-20 0.240 3.712
2010-04-26 0.120 2.897
2010-04-12 0.120 2.358
2009-04-20 0.050 1.718

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as First Tractor has not reported any payouts.
  • Unable to verify if First Tractor's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of First Tractor's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as First Tractor has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess First Tractor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can First Tractor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. First Tractor has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

38 Management

 What is the CEO of First Tractor's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jiguo Liu
COMPENSATION CN¥499,600
AGE 55
TENURE AS CEO 0.3 years
CEO Bio

Mr. Jiguo Liu has been Executive Director at First Tractor Co. Ltd. Since April 25, 2019. He has been General Manager at First Tractor Co. Ltd. Since March 05, 2019. He served as Deputy General Manager at First Tractor Co. Ltd. Until March 05, 2019. Mr. Jiguo served as a Deputy General Manager of First Tractor Co. Ltd. since July 1, 2009. Mr. Liu joined China First Tractor Group in 1987, where he had been section head, deputy factory manager and factory manager. He had also served as executive deputy general manager and general manager of Agriculture Equipment Division of YTO Group. He Joined First Tractor Co. Ltd. in 1997. He served as a Non-Executive Director of First Tractor Co. Ltd. from June 2011 to October 29, 2015. Mr. Liu is familiar with the machinery manufacturing technics and equipment, marketing and has extensive experience in production, operation, cost management of procurement and financial operations. He holds the title of Senior Engineer. Mr. Liu graduated from Northeast Heavy Machinery Institute and Jiangsu University of Science and Technology with a bachelor’s degree in engineering and a master’s degree in engineering respectively.

CEO Compensation
  • Jiguo's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jiguo's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team

Jiguo Liu

TITLE
GM & Executive Director
COMPENSATION
CN¥500K
AGE
55
TENURE
0.3 yrs

Lina Yu

TITLE
Deputy GM & Secretary to the Board
COMPENSATION
CN¥556K
AGE
49

Wensheng Su

TITLE
Deputy General Manager
COMPENSATION
CN¥553K
AGE
51
TENURE
6.6 yrs

Kejun Wang

TITLE
Deputy General Manager
COMPENSATION
CN¥492K
AGE
55

Xiaoyu Li

TITLE
Chairman
AGE
52

Jibo Cai

TITLE
Vice Chairman
AGE
49

Liwen Yi

TITLE
Head of The Audit Department
AGE
56

Junfen Zhao

TITLE
Financial Controller
AGE
40
Board of Directors Tenure

Average tenure and age of the First Tractor board of directors in years:

0.8
Average Tenure
55.5
Average Age
  • The average tenure for the First Tractor board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jiguo Liu

TITLE
GM & Executive Director
COMPENSATION
CN¥500K
AGE
55
TENURE
0.3 yrs

Xiaoyu Li

TITLE
Chairman
AGE
52
TENURE
0.3 yrs

Jibo Cai

TITLE
Vice Chairman
AGE
49
TENURE
0.3 yrs

Zeng Biao Yu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥89K
AGE
64
TENURE
3.8 yrs

Minli Yang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥86K
AGE
54
TENURE
3.8 yrs

Edmund Sit

TITLE
Independent Non-Executive Director
AGE
56
TENURE
0.8 yrs

Hepeng Li

TITLE
Non-Executive Director
COMPENSATION
CN¥12K
AGE
65
TENURE
3.8 yrs

Gang Xie

TITLE
Non-Executive Director
COMPENSATION
CN¥14K
AGE
63
TENURE
3.8 yrs

Honghai Zhou

TITLE
Non-Executive Director
AGE
47
TENURE
0.8 yrs

Yuru Wang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥18K
AGE
65
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
11. Jul 19 Sell UBS Asset Management Company 08. Jul 19 08. Jul 19 -185,060 HK$1.89 HK$-349,541
02. Jul 19 Buy UBS Asset Management Company 26. Jun 19 26. Jun 19 208,000 HK$2.07 HK$430,997
X
Management checks
We assess First Tractor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. First Tractor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

38 News

Simply Wall St News

First Tractor (HKG:38) Has Us Worried With Its Last Reported Debt Levels

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … The latest balance sheet data shows that First Tractor had liabilities of CN¥7.97b due within a year, and liabilities of CN¥1.30b falling due after that. … Because it carries more debt than cash, we think it's worth watching First Tractor's balance sheet over time.

Simply Wall St -

Investors Who Bought First Tractor (HKG:38) Shares Five Years Ago Are Now Down 63%

Zooming in on an example, the First Tractor Company Limited (HKG:38) share price dropped 63% in the last half decade. … Over five years First Tractor's earnings per share dropped significantly, falling to a loss, with the share price also lower. … A Dividend Lost The share price return figures discussed above don't include the value of dividends paid previously, but the total shareholder return (TSR) does.

Simply Wall St -

First Tractor Company Limited (HKG:38): Time For A Financial Health Check

Investors are always looking for growth in small-cap stocks like First Tractor Company Limited (HKG:38), with a market cap of HK$4.9b. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.

Simply Wall St -

Could The First Tractor Company Limited (HKG:38) Ownership Structure Tell Us Something Useful?

Every investor in First Tractor Company Limited (HKG:38) should be aware of the most powerful shareholder groups. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … First Tractor is a smaller company with a market capitalization of HK$4.6b, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Such Is Life: How First Tractor Shareholders Saw Their Shares Drop 57%

First Tractor Company Limited (HKG:38) shareholders should be happy to see the share price up 15% in the last month. … In that time the share price has delivered a rude shock to holders, who find themselves down 57% after a long stretch. … Over five years First Tractor's earnings per share dropped significantly, falling to a loss, with the share price also lower.

Simply Wall St -

Before You Buy First Tractor Company Limited (HKG:38), Consider Its Volatility

Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

What does First Tractor Company Limited's (HKG:38) Balance Sheet Tell Us About Its Future?

Investors are always looking for growth in small-cap stocks like First Tractor Company Limited (HKG:38), with a market cap of HK$4.4b. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.

Simply Wall St -

How Much Of First Tractor Company Limited (HKG:38) Do Institutions Own?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … First Tractor is not a large company by global standards. … institutional investors have bought into the company.

Simply Wall St -

First Tractor Company Limited (HKG:38): Time For A Financial Health Check

While small-cap stocks, such as First Tractor Company Limited (HKG:38) with its market cap of CN¥4.50b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Who Are The Largest Shareholders In First Tractor Company Limited (HKG:38)?

Today, I will be analyzing First Tractor Company Limited’s (HKG:38) recent ownership structure, an important but not-so-popular subject among individual investors. … Ownership structure of a company has been found to affect share performance over time. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

38 Company Info

Description

First Tractor Company Limited engages in the research and development, manufacture, and sale of agricultural and power machinery, and related spare parts. The company operates through four segments: Agricultural Machinery, Power Machinery, Finance, and Other Machinery. It offers wheeled and crawler tractors, and its components, such as castings, gears, gear boxes, and covers; and industrial handling products, such as mine trucks, and industrial and economic forklifts. The company also provides off-road diesel engines, as well as accessory parts, including fuel injection pumps and fuel injectors; harvesters; and accessories of construction machineries, low-speed vehicles, vessels, and power generators. In addition, it offers various parts comprising forged parts, agricultural machinery covering panels, mudguards of covering parts, front drive axles, control machine tools, rear transfer box housings, dry cylinder blocks, and machine tool main crankcase assembly products. Further, the company engages in fund settlement, fund raising, financing, and other financial activities; and the processing and sale of rough and semi-finished, and finished products of castings and forging products. Additionally, it accepts deposits; and provides loans, bills, financial leasing, consumer credit service, and buyer credit and investment products and services. First Tractor Company Limited markets its products to approximately 140 countries and regions worldwide. The company was formerly known as First Tractor Works of China. The company was founded in 1955 and is based in Luoyang, China. First Tractor Company Limited is a subsidiary of YTO Group Corporation.

Details
Name: First Tractor Company Limited
38
Exchange: SEHK
Founded: 1955
HK$5,705,588,188
985,850,000
Website: http://www.first-tractor.com.cn
Address: First Tractor Company Limited
No. 154 Jianshe Road,
Luoyang,
Henan Province, 471004,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 38 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 23. Jun 1997
DB FTP Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 23. Jun 1997
SHSC 38 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 23. Jun 1997
SZSC 38 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 23. Jun 1997
OTCPK FIRR.Y ADR Pink Sheets LLC US USD 05. Apr 2012
SHSE 601038 Domestic Shares Shanghai Stock Exchange CN CNY 08. Aug 2012
XSSC 601038 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 08. Aug 2012
Number of employees
Current staff
Staff numbers
8,488
First Tractor employees.
Industry
Agricultural and Farm Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 12:37
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2018/03/29
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.