Stock Screening by Turnover, Float Value, and Revenue Growth

Summary

The screen selects equities using three criteria: turnover between 3% and 12%, circulating market value between 5 billion and 10 billion yuan, and 2021 revenue divided by 2018 revenue above 1.1. The stated rationale is to combine trading activity and company size constraints with a basic measure of multi-year revenue growth. The document also provides example formula and Python-style implementation references, while cautioning that field names depend on the data source.

The article recognizes that comparing two annual revenue observations can miss seasonal or cyclical effects and that revenue alone does not represent a company’s full financial condition. It suggests considering profitability, margins, leverage, asset growth, earnings per share, and shareholder returns as additional inputs. It offers no backtest, portfolio construction rules, transaction-cost analysis, or evidence that the screen predicts returns. The thresholds describe a screening recipe, not a complete investment strategy, and the underlying financial data and units should be checked before implementation.

Key ideas

• The screen filters stocks by turnover, circulating market value, and a comparison of 2021 with 2018 revenue.
• The revenue ratio threshold is intended to identify companies with growth across the selected years.
• A two-point revenue comparison can be distorted by seasonal and business-cycle effects.
• The article suggests adding profitability, balance-sheet, growth, and shareholder-return measures.
• No backtest or evidence of investment performance is provided.

Tags

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