SEHK:38

Stock Analysis Report

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Executive Summary

First Tractor Company Limited engages in the research, development, manufacture, and sale of agricultural and power machinery, and related spare parts.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

How has First Tractor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 38's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.5%

38

0.3%

HK Machinery

0.8%

HK Market


1 Year Return

85.7%

38

41.4%

HK Machinery

5.5%

HK Market

Return vs Industry: 38 exceeded the Hong Kong Machinery industry which returned 42.2% over the past year.

Return vs Market: 38 exceeded the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

38IndustryMarket
7 Day-5.5%0.3%0.8%
30 Day27.3%5.1%-2.4%
90 Day35.1%23.2%7.6%
1 Year85.7%85.7%45.2%41.4%9.8%5.5%
3 Year-14.3%-14.3%65.0%52.5%2.1%-8.9%
5 Year-43.7%-45.3%72.7%58.7%12.7%-6.2%

Price Volatility Vs. Market

How volatile is First Tractor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Tractor undervalued compared to its fair value and its price relative to the market?

12.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 38's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 38's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 38 is good value based on its PE Ratio (12.9x) compared to the HK Machinery industry average (13x).

PE vs Market: 38 is poor value based on its PE Ratio (12.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 38's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 38 is good value based on its PB Ratio (0.6x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

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

4.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as First Tractor has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has First Tractor performed over the past 5 years?

-56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 38 has a large one-off gain of CN¥143.6M impacting its March 31 2020 financial results.

Growing Profit Margin: 38 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 38 has become profitable over the past 5 years, growing earnings by -56.9% per year.

Accelerating Growth: 38 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 38 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-8.7%).


Return on Equity

High ROE: 38's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is First Tractor's financial position?


Financial Position Analysis

Short Term Liabilities: 38's short term assets (CN¥6.6B) exceed its short term liabilities (CN¥6.2B).

Long Term Liabilities: 38's short term assets (CN¥6.6B) exceed its long term liabilities (CN¥482.7M).


Debt to Equity History and Analysis

Debt Level: 38's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: 38's debt to equity ratio has reduced from 62.2% to 39.8% over the past 5 years.

Debt Coverage: 38's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: Insufficient data to determine if 38's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 38's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 38's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 38's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 38's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 38 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 38's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jiguo Liu (56 yo)

1.42yrs

Tenure

CN¥471,300

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Jiguo's total compensation ($USD67.64K) is below average for companies of similar size in the Hong Kong market ($USD565.04K).

Compensation vs Earnings: Jiguo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Xiaoyu Li
Chairman1.33yrsno datano data
Jiguo Liu
GM & Executive Director1.42yrsCN¥471.30kno data
Jibo Cai
Vice Chairman1.33yrsno datano data
Junfen Zhao
CFO & Financial Controller1.17yrsCN¥181.30kno data
Wensheng Su
Deputy General Manager7.67yrsCN¥439.70kno data
Kejun Wang
Deputy General Managerno dataCN¥440.40kno data
Wenpu Xue
Deputy General Manager1yrCN¥552.50kno data
Lina Yu
Deputy GM & Secretary to the Board14.08yrsCN¥441.40kno data
Liwen Yi
Head of The Audit Departmentno datano datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: 38's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiaoyu Li
Chairman1.33yrsno datano data
Jiguo Liu
GM & Executive Director1.42yrsCN¥471.30kno data
Jibo Cai
Vice Chairman1.33yrsno datano data
Lak Pun Sit
Independent Non-Executive Director1.83yrsCN¥19.40kno data
Hepeng Li
Non-Executive Director4.83yrsCN¥5.90kno data
Donggang Xie
Non-Executive Director4.83yrsCN¥5.70kno data
Minli Yang
Independent Non-Executive Director4.83yrsCN¥96.60kno data
Honghai Zhou
Non-Executive Director1.83yrsno datano data
Yuru Wang
Independent Non-Executive Director1.83yrsCN¥96.60kno data
Tian Peng
Non-Staff Representative Supervisor1.83yrsno datano data
Zhang Bin
Non-Staff Representative Supervisor1.83yrsno datano data
Hongsheng Zhang
Chairman of Supervisory Committee0.75yrno datano data

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 38's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First Tractor Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Tractor Company Limited
  • Ticker: 38
  • Exchange: SEHK
  • Founded: 1955
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: HK$9.804b
  • Shares outstanding: 985.85m
  • Website: https://www.first-tractor.com.cn

Number of Employees


Location

  • First Tractor Company Limited
  • No. 154 Jianshe Road
  • Luoyang
  • Henan Province
  • 471004
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
38SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 1997
FIRR.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 1997
FTPDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 1997
38SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 1997
38SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 1997
FIRR.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2012
601038SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYAug 2012
601038XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYAug 2012

Biography

First Tractor Company Limited engages in the research, development, manufacture, and sale of agricultural and power machinery, and related spare parts. It operates through four segments: Agricultural Machi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:53
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.