Shares of First Tractor Company Limited (00038) surged more than 10% in Hong Kong trading, last up 10% at HK$9.35 with turnover reaching HK$61.79 million.

The company, also known as First Tractor, released its interim results for 2026, posting total operating revenue of RMB 7.886 billion, a 13.84% increase year-on-year. Net profit attributable to shareholders reached RMB 782 million, up 1.72% from the prior year. In the second quarter alone, revenue climbed 35.7% to RMB 3.22 billion, while attributable net profit slipped 8.2% to RMB 220 million. Notably, core profit excluding non-recurring items jumped 77.6% year-on-year to RMB 290 million.

Where to look first

Analysts at Guojin Securities noted that both revenue and core profit growth surpassed expectations, with the reported net profit heavily impacted by one-off fair value losses.

In the domestic market, First Tractor has outpaced the broader industry in sales growth for its key products. Tractor sales reached 50,100 units, up 17.05% year-on-year, while diesel engine sales soared 47.79% to 112,600 units.

Why the market is watching

Overseas operations are accelerating, with first-half export sales rising 47% to 8,006 units. Significant growth was recorded in the Americas and key Asian markets, with an increasing share of large and medium-sized tractors in total exports.