Screening for Turnover, Profit Growth, and Dividends, Then Ranking by Market Value

Summary

This Chinese equity screen selects stocks with turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and a 2019 dividend ratio above 25%. It then ranks qualifying stocks by market value and takes the five largest. The document frames the approach as emphasizing earnings and dividends rather than recent trading value, and includes example implementations using market data services; it provides no backtest or return evidence.

The selection is acknowledged to be a coarse fundamental screen. It does not adequately account for industry or company position, and the reliance on a single year of dividends may be incidental. The proposed improvements are to add measures such as return on equity and earnings per share, consider a longer dividend history, and incorporate industry and market-position filters. The thresholds and ranking rule are therefore a starting point requiring broader company and market analysis.

Key ideas

• Eligible stocks must have turnover between 3% and 12%, specified parent-attributable profit growth, and a 2019 dividend ratio above 25%.
• The final rule ranks eligible stocks by market value and selects the top five.
• The method emphasizes profit growth and dividends and gives no reported performance evidence.
• The screen does not adequately assess industry, market position, or wider fundamentals.
• Suggested refinements include additional financial measures, more dividend years, and industry filters.

Tags

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