![](https://wp-static.smartkarma.com/../assets/uploaded/2022/01/TMTTencentAdvantestCorpSamsungElectronicsPrefSharesKeyenceCorpandmore.jpg)
In today’s briefing:
- Tencent Holdings – Getting Its House In Order
- Advantest – Upside and Downside Scenarios
- Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma
- Keyence – Not a Gimme but Worth a Small Buy Into Earnings
Tencent Holdings – Getting Its House In Order
- Substantial disagreements over the video streamer DouYu International’s strategic direction, prompts ownership re-think at Tencent;
- Tencent is allegedly privatizing Douyu near the bottom of the market; and
- Unlike the JD.com move, this transaction maximizes shareholder value while getting into regulatory compliance.
Advantest – Upside and Downside Scenarios
- Advantest shares are down 19% from their Jan 4th high after a post earnings rally on Friday.
- While order momentum remains strong it has moderated slightly since 2Q and longer-term risks are a concern.
- What remains to be seen is how sustainable Chinese demand is given its steady rise since 2016.
Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma
- Korean prefs have outperformed ords on a YTD basis, probably due to the LG Energy listing. Many of KOSPI’s large-cap stocks have seen an outflow to make room for LGES.
- Samsung Electronics 1P and Mirae Asset 2PB have a negative pref-ord YTD yield difference and are currently below-1.0σ on a 20-day MA.
- Mirae widened the pref-ord spread by announcing an ord-only share buyback. So it should be seen as an outlier. Then, virtually all that remains is the Samsung Electronics 1P.
Keyence – Not a Gimme but Worth a Small Buy Into Earnings
- We are broadly negative the FA sector as we expect earnings to fall next FY for most players and valuations are extended.
- Keyence is an exception in that we expect further growth next year although valuations are extended even for Keyence.
- We believe this is because the market is pricing in its greater earnings resilience but maybe not quite enough.
Before it’s here, it’s on Smartkarma