A-Share Screen Using Turnover and Historical Revenue Growth

Summary

This A-share screening rule filters for turnover between 3% and 12%, excludes Beijing-listed shares, and requires 2021 revenue to exceed 2018 revenue by a factor greater than 1.1. The stated aim is to find companies with revenue growth while retaining a moderate level of trading activity. The document includes formula and sample implementation references for applying these conditions.

The source offers no backtest, selected-stock analysis, or return evidence. It cautions that revenue growth alone can overlook other fundamentals and that rapidly growing sales do not guarantee profitability or attractive investment returns. It recommends checking measures such as valuation and return on equity, as well as revenue behavior across additional periods, but does not specify thresholds or test the combined screen. The rule is therefore a basic historical growth filter rather than a demonstrated valuation or quality strategy; its use also depends on consistent treatment of the turnover units and historical financial data.

Key ideas

• The screen uses a turnover range of 3% to 12% and excludes Beijing A-shares.
• It requires 2021 revenue divided by 2018 revenue to be greater than 1.1.
• The proposed rationale is to identify firms with historical revenue growth and a chosen level of trading activity.
• Revenue growth alone does not establish profitability or attractive returns.
• The document recommends considering valuation, return on equity, and growth across more periods but provides no performance test.

Tags

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