Screening Shenzhen Main Board Stocks by Size, Profitability, Valuation, and Price

Summary

This proposed screen combines price movement, company size, profitability, exchange segment, valuation, and share price. It selects stocks with amplitude above 1, market capitalization below 10 billion yuan, positive net profit, and Shenzhen Main Board listing, then applies price-to-earnings and price-to-book ranges and a closing-price ceiling. Example formula and Python-style filters illustrate the criteria.

The article frames smaller capitalization as a possible source of growth and positive profits as a quality filter, while acknowledging that numeric screens omit industry prospects and competitive position. It also cautions that selecting too many stocks may dilute the intended effect and that market volatility can undermine the approach. Suggested improvements include combining several selection rules, adding business and sector analysis, and monitoring the market. It gives no backtest, benchmark comparison, or return evidence; the thresholds are screening choices rather than demonstrated predictors.

Key ideas

• The screen combines amplitude, market capitalization, positive profits, Shenzhen Main Board status, valuation ranges, and a price ceiling.
• It uses both financial and market data to filter candidates.
• The article warns that numeric criteria can omit industry prospects and company competitiveness.
• No backtest or performance evidence is given.

Tags

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