HK Stock Market Move | First Tractor (00038) rose more than 11% in early trading, the company is expected to benefit from the modernization transformation of agriculture, and the export business will become a new growth point.

First Tractor (00038) rose by over 11% in the morning session, as of the time of writing, it was up 11.39% at 8.02 Hong Kong dollars, with a trading volume of 72.26 million Hong Kong dollars. Goldman Sachs released a research report stating that First Tractor is the largest producer of agricultural tractors in China. Against the backdrop of China's transition to modernize agriculture in order to achieve food security, the company is in a favorable position to capture the structural growth opportunities brought about by the large-scale and high-end upgrades of tractors. In the long term, the export business is expected to become another major pillar of the company's growth, as First Tractor continues to enhance its global competitiveness, with exports potentially becoming a new driver of long-term growth. The bank believes that these structural changes will gradually align First Tractor's profit margins and returns with global peers, and provide an opportunity for upward revaluation of the stock's relatively low valuation.