Screening Shenzhen Main Board Stocks by ROE, Valuation, and Price Range
Summary
This stock screen looks for Shenzhen Main Board companies with annual return on equity above 15% in each of five years, a price-to-earnings ratio from zero to 29.01, and a price-to-book ratio from zero to 3.11. It also requires the daily high-low range to be at least one. The post frames the profitability history and valuation bounds as ways to find financially stronger stocks at moderate valuations, while the price range adds a market-activity filter.
The article describes the conditions in prose and provides example selector logic, but it does not report a backtest or investment results. It cautions that relying on valuation ratios may miss growth opportunities or fail to adapt to changes in the market or a company. Its suggested refinements include considering additional valuation, company, industry, and market information. However, the proposed extra factors are not specified or evaluated, so the screen remains a basic filter rather than a validated long-term strategy.
Key ideas
- The screen requires return on equity above 15% in each of five years.
- It restricts candidates to Shenzhen Main Board stocks within specified price-to-earnings and price-to-book ranges.
- A high-low price range of at least one is included as an additional filter.
- The post identifies risks in relying heavily on valuation ratios and a narrow set of conditions.
- No backtest results are reported, and suggested additional factors are not tested.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.