Concept tracking of Hong Kong stocks | Promoting the scrapping and renewal of old agricultural machinery Institutions are optimistic about the growth space of leading enterprises (with concept stocks)

The Central Document No. 1 for 2025 was released on February 23, which is titled "Opinions of the CPC Central Committee and the State Council on Further Deepening Rural Reform and Solidly Promoting the Comprehensive Revitalization of Rural Areas". This is the 13th guiding document on agricultural work since the 18th National Congress of the Communist Party of China. It mentioned promoting the high-quality development of agricultural machinery and equipment, speeding up the research and application of domestically produced advanced and applicable agricultural machinery and equipment, and promoting the scrapping and renewal of old agricultural machinery. It also supports the development of Jiangsu Nonghua Intelligent Agriculture Technology and the expansion of artificial intelligence, data, and low-altitude technologies application scenarios. The National Development and Reform Commission and the Ministry of Finance announced that they will expand support for the scrapping and renewal of old operating trucks and agricultural machinery. Each region can independently determine the maximum number of types of agricultural machinery eligible for scrapping and renewal subsidies, which has been increased from 6 to 12. Sinolink pointed out that since September 2024, due to the decline in food prices and the industry's stockpile, the agricultural machinery industry has seen a decline in production and sales. Currently, the sales channels are still in the process of destocking, and the overall performance in Q4 2024 is relatively stable. It is believed that the destocking of agricultural machinery inventory will continue to progress, which can lay a good foundation for a strong start in the first quarter of 2025. Listed Hong Kong companies related to agricultural machinery: FIRST TRACTOR (00038): FIRST TRACTOR announced that the sales of tractor products in 2024 were approximately 74,300 units, an increase of 2.71% year-on-year. Sales of high-horsepower tractors rose by 12.49%, while sales of medium-horsepower tractors and low-horsepower tractors decreased by 4.57% and 52% respectively. Diesel engine product sales were around 146,000 units, a decrease of 3.32% year-on-year. The company continuously enriches its export product configuration based on the agricultural characteristics and user needs of different regions, laying a solid product foundation for establishing a global market structure. The overseas market is expected to become a new driving force for the company's continued development. Soochow pointed out that the company is a leading domestic high-end large horsepower tractor enterprise, benefiting from the dual advantages of the large and high-end competition in the domestic tractor market and the smooth expansion of overseas markets.