Zhito Finance APP learned that First Tractor (00038) rose over 5%, as of the time of writing, it increased by 5.01%, reported at 7.75 Hong Kong dollars, with a transaction amount of 11.7414 million Hong Kong dollars.

In the news, Soochow Securities pointed out that the company is a leading enterprise in China's high-end large horsepower tractor sector, benefiting from the dual bullish factors of the domestic tractor competition pattern becoming larger and higher-end, as well as successful expansion into overseas markets. Driven by both policy and market forces, the demand for larger and higher-end products is increasingly on the rise. Under a neutral expectation, the firm believes that by 2026, the company's domestic revenue from medium and large tractors will reach 16.44 billion yuan. Furthermore, overseas demand opens up a second growth pole: the company continues to plan for tractor exports, with export revenue CAGR of 35.41% from 2019 to 2023, focusing on the Russian-speaking region, South America, Asia, and other areas.

Huaan Securities stated that in order to further enhance the mechanization level of agricultural production, the central document for 2024 clearly proposes to increase the purchase subsidy for agricultural machinery, with subsidies reaching 24.6 billion yuan. Overall, the development prospects of the agricultural machinery industry are broad. According to data from the China Business Industry Research Institute, the domestic agricultural machinery market size is expected to further expand to 610 billion yuan in 2024. In terms of going abroad, the company consistently adheres to a unique global development path aimed at enhancing global market competitiveness. From the perspective of overseas revenue, the company’s overseas revenue reached 0.985 billion yuan in 2023, with a CAGR of 35.37% from 2019 to 2023.