Hong Kong stock concept tracking | Increase in subsidies for scrapping old agricultural machinery expands The destocking of the agricultural machinery industry continues to advance (with concept stocks)

Media reporters learned from the Ministry of Agriculture and Rural Affairs on the 25th that this year, the subsidy for scrapping and renewing old agricultural machinery will be further expanded, and the subsidy standards will also be significantly increased. The "Notice on the Implementation of the Policy of Scrapping and Renewing Agricultural Machinery in 2025" jointly issued by the Ministry of Agriculture and Rural Affairs, the National Development and Reform Commission, the Ministry of Finance, and the State Grain and Material Reserves Bureau clearly states that the scope of subsidies for scrapping old agricultural machinery will be further expanded. In addition to the existing 9 types of agricultural machinery, rice transplanters, field operation monitoring terminals, crop protection drones, grain dryers, color sorters, and flour mills will be newly included in the scope of scrapping and renewing subsidies. The notice also proposes to continue implementing the policy of raising standards in 2024 by further increasing the subsidies for certain key machinery. For example, the subsidy for scrapping and purchasing new rice transplanters of the same type will be raised by no more than 50%. The maximum subsidy for scrapping and purchasing cotton pickers will be increased from 60,000 yuan to 80,000 yuan per unit. The subsidies for scrapping and renewing agricultural Beidou navigation systems, field operation monitoring terminals, and crop protection drones will be increased by 50%. Central Document No. 1 of 2025 proposes to promote the high-quality development of agricultural machinery equipment, accelerate the research and application of domestically produced advanced and applicable agricultural machinery equipment, and promote the scrapping and renewing of old agricultural machinery. Support the development of Jiangsu Nonghua Intelligent Agriculture Technology and expand the application scenarios of artificial intelligence, data, and low-altitude technologies. Several personnel from agricultural listed companies interviewed expressed that Jiangsu Nonghua Intelligent Agriculture Technology has become a global trend in modern agriculture, with "AI + Agriculture" being the trend. Sinolink pointed out that the clearance of inventory in the agricultural machinery industry continues to advance, laying a good foundation for a strong start in the first quarter of 2025. Listed Hong Kong agricultural machinery companies: FIRST TRACTOR (00038): FIRST TRACTOR announced that the sales of tractor products in 2024 were about 74,300 units, a year-on-year increase of 2.71%. The sales of high-horsepower tractors increased by 12.49%, while the sales of medium-horsepower tractors and small-horsepower tractors decreased by 4.57% and 52% respectively. As for diesel engine products, the sales were about 146,000 units, a year-on-year decrease of 3.32%. The company continuously enriches export product configurations based on the agricultural characteristics and user needs of different regions, laying a solid product foundation for establishing a global market architecture. The overseas market is expected to become a new driving force for the company's continuous 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-scale and high-end competition in the domestic tractor market and the smooth expansion of the overseas market.