Shares of First Tractor (00038) are up more than 5%, up 5.06% at HKD 6.64 as of press time, with a turnover of HKD 39.4686 million.
According to the Zhiliao Finance APP, shares of First Tractor (00038) are up more than 5%, up 5.06% at HKD 6.64 as of press time, with a turnover of HKD 39.4686 million.
As for the news, the National Development and Reform Commission and the Ministry of Finance have issued several measures to vigorously support large-scale equipment renewal and the replacement of consumer goods. Among them, the scrapping subsidy for tractors (over 20 horsepower) has been increased from RMB 1,000 to RMB 1,500 per unit. The subsidy standard for scrapping and purchasing new combines and seeders is increased by 50% on the existing basis. For cotton-picking machines, the subsidy for scrapping and purchasing new ones will be increased from RMB 0.03 million to RMB 0.06 million per unit. In addition, each region can include up to six additional types of new agricultural machinery in the subsidy program.
China Merchants Securities pointed out that this policy further refines the scope of updates and subsidy amounts for equipment such as ships and agricultural machinery. We expect that the amount of subsidies for updates and scrapping will be higher this time, which will be more conducive for downstream equipment replacement. Considering that ships and agricultural machinery are typical cyclical industries, the update of equipment has a significant impact on industry demand. Therefore, we expect this policy to have a positive effect on ships and agricultural machinery.