Screening Shenzhen Stocks by Valuation, Size, and Profitability
Summary
The document describes a Chinese A-share screening approach for Shenzhen main-board stocks. It selects shares with amplitude above 1, price-to-earnings ratios from 0 to 29.01, price-to-book ratios from 0 to 3.11, market capitalization below 10 billion yuan, and positive net profit in the previous full fiscal year. It also outlines a Tushare and pandas implementation that checks valuation, estimated market value, and reported profitability data.
The article argues that combining valuation, size, and profitability filters is more selective than relying on one measure. It notes that the valuation bands may shrink the eligible universe, amplitude can reflect market swings rather than investment merit, and the stated size limit alone does not ensure financial strength. It suggests adding other fundamental and technical measures and defining entry and exit rules. No backtest, portfolio results, or performance evidence is provided, and the sample code’s data handling would need review before use.
Key ideas
- The screen combines price amplitude, valuation ratios, market capitalization, and prior-year profitability.
- It targets Shenzhen main-board companies below 10 billion yuan in market value.
- The proposed profitability check requires positive net profit in the prior complete fiscal year.
- Tight valuation limits may reduce the number of eligible stocks and exclude potential opportunities.
- The article provides selection logic but no backtest or evidence of investment performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.