Is 0038.HK overvalued or undervalued?

0038.HK currently has a P/E ratio of 18.59. Relative to the sector average of 28.20, this suggests the stock may be undervalued. A higher P/E than peers means investors are paying more for each unit of earnings, often because they expect faster future growth. However, if that growth does not materialize, the stock can appear overvalued. A lower P/E may indicate weaker growth expectations or higher risk, but it can also signal a potential valuation discount.

How can I buy First Tractor Company Limited stock?

First Tractor Company Limited trades on HKSE. Investors in Latin America can buy it through international and regional brokerage and investment platforms. You simply need a valid government ID or passport to get started.

Can I buy fractional shares of 0038.HK?

Yes. Through fractional investing, you can invest exactly the amount you want, starting with as little as $1 or $5 USD (depending on what investment platform you use), and own a proportional piece of the company.

Does buying 0038.HK protect my money against local inflation?

Many investors in Latin America buy international stocks like 0038.HK to protect their purchasing power. Because 0038.HK is priced in foreign currency, your investment is tied to a hard currency. If your local currency devalues against the foreign currency, usually USD or Euro, the underlying value of your stock portfolio remains protected from local inflation.

Do I need a foreign bank account or a Visa to buy 0038.HK shares?

No. A common misconception is that you need a foreign bank account or a foreign visa to invest in international stocks. Today, modern investment platforms allow you to fund your account using local bank transfers or local payment methods right from your home country.

Is 0038.HK a suitable investment for my portfolio?

There is no universal answer, since fit depends on your situation, not just the stock. Think about three things: how well 0038.HK diversifies what you already own, whether you can stomach its price swings given your risk tolerance, and how long you plan to stay invested. As a rule, a single stock works best as one piece of a broader asset allocation and with a multi-year time horizon. This is general information, not personalized financial advice.

All stocks0038.HK

First Tractor Company Limited

HK$8.40-HK$0.20-2.33%

HKSE / HKD

Market cap

HK$16.0B

P/E

18.6

EPS (TTM)

HK$0.10

Dividend yield

3.62%

Beta

1.22

1Y return

+18.98%

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Financials

The numbers behind the company

Revenue vs net income

RevenueNet income

$1.5B2021

$1.8B2022

$1.6B2023

$1.6B2024

$1.5B2025

Financial health

Gross margin

Operating margin

ROE

ROA

Debt to equity0.38Low
Current ratio0.95
Cash ratio0.21
Net margin7.0%
Free cash flow—

Valuation

Is it expensive right now

P/E vs the market

scale 0–50

0153050

0038.HK18.6
Industrials sector median28.2
S&P 50022.0

Trades about 34% below its sector, cheaper than its peers on earnings.

Ratios

PEG2.57
Price to book1.88
EPS (TTM)HK$0.10
Payout ratio6,798%
FCF yield9.96%

Range & risk

HK$6.33HK$10.60

Trading in the middle of its 52-week band

Beta1.22

Profile

What First Tractor Company Limited actually does

First Tractor Co., Ltd. engages in the research, development, manufacture, and sale of agricultural machinery and power machinery as well as their parts and components. It operates through the following business segments: Agricultural machinery, Power machinery, and Finance. The Agricultural machinery segment involves in the research, development, manufacture, and sale of wheeled and crawler tractors as well as related parts such as forgings, gears, and gearboxes. The Power machinery segment includes off-read diesel engines as well as parts such as fuel pumps and injectors. The Finance segment provides capital settlement, deposit and loan, finance lease, buyer credit, and investment services through non-bank financial institution subsidiaries. The company was founded in 1955 and is headquartered in Luoyang, China.

CEO

Tao Wei

Employees

7,011

Headquarters

Luoyang, HA

Founded

1997-06-23

Company website

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Community sentiment

Bullish—

Distribution

Bearish0%
Neutral0%
Bullish0%

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Q&A

Questions people ask

0038.HK has a beta of 1.22, which indicates how sensitive it has historically been to movements in its broader market. A beta above 1 suggests higher relative volatility than the market. Beta is based on historical data and does not predict future performance.

First Tractor Company Limited