PinoyDesk By Juan Castro
CIRTEK Holdings Philippines Corp. has been given a PRS A mark by local debt monitor Philippine Rating Services Corp. (PhilRatings) in favor of its commercial paper up to P2 billion.
In a statement on Tuesday, PhilRatings reported that it gave Cirtek a PRS A (corp.) credit rating for the company’s three-year commercial paper registration. The ranking provides a positive outlook for the sector, which indicates that it will stay constant for the next 12 months.
PRS A (corp.) ranking firms had an above-average capacity to fulfill their respective financial requirements similar to most municipal businesses. However, the ranking therefore indicates that the business is far more vulnerable to unfavorable shifts in economic conditions. Cirtek aims to collect up to P2 billion by the issuing of commercial paperwork to refinance debt and support labor capital needs.
Cirtek earned the rating due to its sustainable liquidity and capitalization rate, track record, solid control departments and client base, increased profit margin amid low sales, and the volatile and cyclical existence of the electronics industry, the local debt watcher said.
“The level of capitalization of the company also remained manageable, with its debt-to-equity ratio stable at 1.1x at the end of 1919 and remaining roughly unchanged at the end of September 2020,” said PhilRatings.
“Cirtek is expected to achieve a much more conservative capital structure in the future, given its planned equity raising activities and the ongoing payment of existing debt,” he said.
PhilRatings noted that, as of September 2020, Cirtek’s combined sales declined from $16.5 million to $59.5 million year-on-year, largely due to the reduced revenue share of Quintel’s subsidiary.
The local debt watcher added that Cirtek’s net profits for the nine-month period fell from 1.7% year-on-year to $3.6 million, although Cirtek’s net profit margin rose to 6.1% from January to September 2020.
“At the end of September 2020, the liquidity position of Cirtek remained satisfactory, with its current ratio and the acid test ratio at 1.1x and 0.5x, respectively,” said PhilRatings.
Cirtek is a multinational technology corporation that specializes on wireless networking and has commercial interests in producing and distributing semiconductor kits and other technology items.
Dec 03, 2021
Published by Malaya
Cirtek Holdings Philippines Corp. expects to raise P2.5 billion from its ongoing preferred share sale.
It was earlier looking at a P3.5 billion fund raising.
The company said it is now selling 50 million of its preferred shares at an offer price of P50 apiece from an earlier 70 million, divided into an initial 30 million and another 20 million covering the oversubscription option.
The preferred shares that will have a series of TCB2C for the Preferred Class B-2 Subseries C and CB2D for the Preferred Class B-2 Subseries D will have a dividend rate of 6.5864 percent for TCB2C...
Read moreJan 12, 2021
Laguna-based Cirtek Holdings Philippines Corp. on Monday said it will scale up the output of its semiconductor plants
Read moreOct 27, 2021
Published by Business Mirror
The Securities and Exchange Commission (SEC) has approved Cirtek Holdings Philippines Corp.’s public offering of up to P3.5 billion worth of preferred shares.
In its en banc meeting, the agency approved the registration statement of Cirtek covering 50 million preferred B-2 Subseries C and D shares at an offer price of P50 per preferred share, with an oversubscription option of up to 20 million preferred shares.
The preferred shares will be listed and traded on the Main Board of the Philippine Stock Exchange (PSE).
The Laguna-based manufacturer expects to net P3.44 ...
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