HK Stock Market Move | The first tractor (stock code 00038) rose by more than 4%, the board proposed to repurchase H shares, and institutions pointed out that the company's operating cycle is stabilizing.

FIRST TRACTOR (00038) rose by more than 4%, reaching 4.07% at the time of publication, at 5.88 Hong Kong dollars, with a turnover of 46.5586 million Hong Kong dollars. In terms of news, FIRST TRACTOR announced its performance for the first quarter of 2025. The group achieved operating income of 4.557 billion RMB, a decrease of 2.13% year-on-year; net profit attributable to shareholders of the listed company was 529 million RMB, a decrease of 11.66% year-on-year. It is worth noting that, according to the company's announcement, the company has proposed to authorize the board of directors to repurchase the company's H shares at the shareholders' meeting in general, with the total number of repurchased shares not exceeding 10% of the total H shares issued by the company, and the repurchase funds including the company's own funds and self-raised funds. Repurchased H shares will be cancelled, and the registered capital will be correspondingly reduced. Sinolink pointed out that the company's Q1 revenue and profits slightly exceeded expectations, with the production of medium-sized tractors stabilizing and the demand clouds gradually dispersing. According to the National Bureau of Statistics, the production of large/medium/small tractors in March was 16,200/33,600/13,300 units respectively, a year-on-year increase of 5.5%/-1.7%/-18.8%; the proportion of large tractor production was 25.7%, an increase of 2.7 percentage points year-on-year. The most eye-catching data in March was the stabilization of medium-sized tractors, indicating that the drag of the 24-year decline in grain prices on tractor demand is coming to an end. It is expected that downstream demand will remain stable for a period of time, and the core contradiction of related companies will become their own operating cycle. The company's revenue and gross profit margin decline have stabilized, indicating that the company's overall business cycle is bottoming out.