Hong Kong stock concept tracking | National Development and Reform Commission research on measures to promote high-quality development of agricultural machinery and equipment, promoting the upgrading of agricultural machinery and equipment through trade-in (with concept stocks)

State Council Meeting: Research on Measures to Promote High-Quality Development of Agricultural Machinery and Equipment The meeting pointed out that agricultural machinery and equipment are an important support for ensuring national food security and building a strong agricultural country. It is necessary to adhere to the needs of agriculture, focus on key areas, comprehensively implement measures from breaking through basic technologies, improving innovation systems, cultivating high-quality enterprises, and building industrial clusters, and accelerate the development of landmark products and key core technologies. It is necessary to make good use of policies such as subsidies for the purchase and application of agricultural machinery and large-scale equipment updates, strengthen pilot testing and mature applications, and promote the market promotion of advanced and applicable agricultural machinery and equipment. The meeting also emphasized the role of standards in leading, carrying out identification, testing, and certification, strengthening quality supervision and management, and promoting the rapid upgrade of agricultural machinery and equipment products. The Central Government's No. 1 Document proposed advancing collaborative research in agricultural science and technology. Leading advanced production factors gathering through technological innovation to develop new quality agricultural productivity in a targeted manner. Focusing on accelerating breakthroughs in key core technologies, strengthening the overall coordination of agricultural research resources, and cultivating leading agricultural technology enterprises. Thoroughly implementing the revitalization of seed industry, leveraging major agricultural research platforms such as "Silicon Valley of Southern Breeding," and accelerating the breakthrough of a number of revolutionary varieties. Continuing to promote the industrialization of biological breeding. Promoting the high-quality development of agricultural machinery and equipment, accelerating the research and application of domestically advanced and applicable agricultural machinery and equipment, and advancing the retirement and replacement of old agricultural machinery. Supporting the development of Jiangsu Nonghua Intelligent Agriculture Technology, expanding the application scenarios of technologies such as artificial intelligence, data, and low-altitude. China Great Wall released a research report stating that the new quality agricultural productivity emphasizes the leading role of technological innovation. This will compel agricultural machinery enterprises to increase their research and development investment in intelligent technology and apply mature technologies such as new energy, digital technology, and artificial intelligence to agricultural machinery and equipment. This will achieve the intelligent upgrading of agricultural machinery and also raise the requirement for the independent controllable ability of domestic agricultural machinery and equipment. In terms of the market, the document also proposes to accelerate the retirement and replacement of old agricultural machinery, which is expected to strengthen the market demand for new types of agricultural machinery, accelerate the elimination of old agricultural machinery, and promote the transformation of agricultural production methods towards intelligence, precision, and efficiency. Against this backdrop, agricultural machinery enterprises with technological innovation capabilities, reliable product quality, and sound aftersales service are expected to expand their market share and enhance their profit capabilities. Sinolink pointed out that the clearance of inventory in the agricultural machinery industry continues to advance, laying a good foundation for the strong start of the 25Q1 peak season. Agricultural machinery-related Hong Kong-listed companies: FIRST TRACTOR (00038): FIRST TRACTOR announced that tractor product sales in 2024 were approximately 74,300 units, a year-on-year increase of 2.71%. Sales of high-horsepower tractors increased by 12.49%, while sales of medium-horsepower tractors and small-horsepower tractors decreased by 4.57% and 52%, respectively. Diesel engine product sales were approximately 146,000 units, a year-on-year decrease of 3.32%. The company continuously enriches its export product configurations based on different agricultural characteristics and user needs in various regions, laying a solid product foundation for establishing a global market architecture. The overseas market is expected to become a new driving force for the company's sustained growth. Soochow pointed out that the company is a leading domestic high-end large-horsepower tractor enterprise, benefiting from the double positive factors of the domestic tractor competition landscape becoming larger and higher-end and the successful expansion of overseas markets.