A-Share Screen for Turnover, Profits, Small Capitalization, and Low Price-to-Book

Summary

This proposed A-share screen combines turnover between 3% and 12%, market capitalization below 10 billion yuan, positive income, and a price-to-book ratio below one. The article frames the idea around selecting profitable, smaller companies with low book valuations and suggests supplementing the screen with valuation measures such as earnings, cash flow, or dividend yield. It also provides example formula and data-fetching code, though those examples do not clearly implement every stated condition consistently.

The article offers no backtest or evidence that the filters produce attractive returns. Its explanation shifts between an “inversion” price pattern and below-book valuation, while the final logic changes the initial pattern-based framing toward broader valuation analysis. It warns that market sentiment can make such stocks unstable and that an overly narrow screen can miss companies with strong fundamentals. The criteria need precise definitions and validation before they can support an investment decision.

Key ideas

• The stated screen uses turnover, market capitalization, positive income, and a price-to-book ratio below one.
• The article suggests adding earnings, cash-flow, or dividend-yield measures to broaden valuation analysis.
• Its explanation shifts between a reversal pattern and below-book valuation, and the sample code may not match all stated filters.
• No performance evidence is supplied, and the article flags volatility and limited fundamental coverage as risks.

Tags

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