Screening Beverage and Alcohol Stocks by Turnover and Profit Growth

Summary

This document describes a Chinese equity screening rule for beverage and alcohol import-export companies. It selects stocks with turnover between 3% and 12% and year-over-year parent-company net profit growth above 20% and up to 100%. The article also gives example formulas and Python that combine industry, turnover, and profit-growth filters, though the code includes additional data fields and a small-buying-volume comparison that are not part of the stated final rule.

The rationale is to combine an industry screen with liquidity and earnings-growth measures. The author cautions that this leaves out macroeconomic conditions, policy changes, competition, and other company factors, and suggests adding measures of industry outlook and competitiveness. No backtest results or evidence of performance are provided, so the screen is a starting point for research rather than a validated strategy.

Key ideas

• The screen targets beverage and alcohol import-export companies.
• It requires turnover between 3% and 12%.
• It filters for parent-company net profit growth above 20% and no more than 100% year over year.
• The article warns that industry and financial filters omit broader market and company risks.
• The example code includes extra volume conditions beyond the stated final selection rule.

Tags

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