Screening Shenzhen Stocks by Turnover, Profit Growth, and Valuation

Summary

This stock-selection recipe filters Shenzhen main-board listings using turnover between 3% and 12%, year-over-year growth in net profit attributable to parent-company shareholders above 20% and up to 100%, price-to-earnings ratios from 0 to 29.01, and price-to-book ratios from 0 to 3.11. The article presents these conditions as a combination of trading activity, earnings growth, and valuation, and includes example implementations using market data tools. Its rationale is that bounded turnover may avoid some extremes, profit growth reflects operating performance, and valuation ratios constrain entry candidates.

The author acknowledges that a small set of indicators cannot represent a company fully and that valuation thresholds may behave differently across industries. Technical indicators, industry context, and recent price behavior are proposed as possible additions. The examples include fixed historical inputs and the article gives no backtest, portfolio results, or evidence that the chosen cutoffs predict returns. The rules should be treated as a screening illustration requiring validation and data checks.

Key ideas

• The screen combines turnover, year-over-year profit growth, valuation ratios, and a Shenzhen listing filter.
• The stated turnover range is 3% to 12%, and profit growth must exceed 20% without exceeding 100%.
• The price-to-earnings and price-to-book limits may not suit every industry.
• The article provides implementation examples but no backtest or performance evidence.

Tags

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