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.
Jul 05, 2021
When Brian Liu stepped up to the role of CFO at electrical component manufacturer Cirtek Holdings Philippines Corporation in the middle of 2020, the world was undergoing intense upheaval as the maelstrom of the COVID-19 pandemic swirled.
Lockdowns, and production and logistical issues became commonplace around the world. So how did he tackle this huge new opportunity amid such turbulent times? The promotion from his former position as Executive Vice President at Cirtek Electronics, a Cirtek subsidiary, came as something of a surprise, Brian tells The CEO Magazine.
But while he...
Read moreJan 16, 2025
Published by Business Mirror
Laguna-based technology firm Cirtek Holdings Philippines Corp. said an American multinational semiconductor company has recognized its unit as the top contract manufacturer worldwide for the evaluation boards product line.
Analog Devices Inc. has recognized Cirtek Advanced Technologies and Solutions Inc. (CATSI) as the number one contract manufacturer during the fourth quarter of last year, the company said.
Analog specializes in data conversion, signal processing and power management technology.
CATSI previously held the number three position during the first and ...
Read moreJul 14, 2021
Published By VG CABUAG BusinessMirror
Quintel USA Inc., a unit of Laguna-based Cirtek Holdings Philippines Corp., on Monday said it has extended its master supply agreement with two major leading carriers in North America.
The extension of the agreement allows Quintel another 5 years of secured business with these two telcos, the firm said.
“Quintel is poised to grow its business in the near to medium term as evidenced by the relevance of its pioneering products that has been well received by our customers. Our products allow carriers to stay ahead of their game and maximize 5G services in the...
Read more