Screening A-Shares by Turnover, Market Value, Profitability, and Earnings Growth
Summary
This A-share screening strategy first restricts candidates by turnover, circulating market value, and a positive-earnings condition. It then selects companies whose year-over-year growth in net profit attributable to parent-company shareholders falls within a specified band, and describes sorting the resulting stocks by market value. The article includes a screening formula and an example data workflow, alongside suggestions to exclude special-treatment shares and consider additional information.
The stated rationale is to combine trading activity, company size, profitability, and earnings growth. The author cautions that relying mainly on net profit growth can overlook other financial measures, valuation, leverage, and industry context; reported earnings can also be affected by accounting practices. The suggested improvements include combining more financial and market factors. No test results, portfolio construction rules, transaction-cost assumptions, or evidence of returns are supplied, so the screen is a starting point rather than a demonstrated strategy.
Key ideas
- The screen combines turnover and market-value constraints with a positive-earnings filter.
- It selects for a bounded year-over-year growth rate in parent-attributable net profit.
- The article describes ranking qualifying stocks by circulating market value.
- It warns that earnings growth alone may miss balance-sheet, profitability, valuation, and industry risks.
- No backtest or trading performance evidence is presented.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.