A-Share Screen for Profit Growth and Sustained High Return on Equity

Summary

This A-share stock screen selects companies with turnover between 3% and 12%, parent-attributable net profit growth above 20% and no more than 100%, and return on equity above 15% for five consecutive years. The stated rationale is to combine trading activity with profitability, growth, and a record of returns on shareholder equity. The article provides both a formula-style selection expression and a Python example intended to retrieve stock and financial data.

The document cautions that the consecutive high-ROE condition may leave a small candidate universe, and that ROE alone cannot establish overall company quality or rule out liquidity problems. It recommends adjusting thresholds for industry and stock type. No backtest, candidate list, or performance evidence is included. The Python example appears to mix annual profit-growth data with the five-year ROE check, so its implementation does not clearly match the screening rule; data-field definitions and timing would need verification before relying on it.

Key ideas

• The screen requires turnover within a specified band, bounded year-over-year net profit growth, and five consecutive years of high ROE.
• The combined conditions aim to capture trading activity alongside profitability and growth.
• A long run of high ROE may sharply restrict the number of qualifying stocks.
• ROE does not capture every aspect of business strength or liquidity.
• The page supplies code examples but no empirical performance evidence, and the Python checks do not clearly implement the stated ROE test.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.