Business World
CIRTEK Holdings Philippines Corp. has been assigned a PRS A mark by local debt watcher Philippine Rating Services Corp. (PhilRatings) in relation to its commercial papers of up to P2 billion.
In a statement on Tuesday, PhilRatings said it gave Cirtek an issuer credit rating of PRS A (corp.) for the company’s three-year shelf registration for commercial papers. The rating includes a stable outlook for the company, which means it is seen to remain unchanged for the next 12 months.
Companies with PRS A (corp.) rating mean they have above average ability to meet their respective financial commitments relative to other local corporates. However, the rating also means the company is somewhat more susceptible to adverse changes in economic conditions. Cirtek plans to raise up to P2 billion through the issuance of commercial papers to refinance debt and fund working capital requirements.
The local debt watcher said Cirtek received the rating due to its manageable liquidity and capitalization levels, track record, strong management team and customer base, better profit margins despite lower revenues, and on the electronics industry’s competitive and cyclical nature.
“The company’s capitalization level also remained manageable, with its debt to equity ratio stable at 1.1x as of end-2019 and remaining roughly unchanged as of end-September 2020,” PhilRatings said.
“Cirtek is seen to attain a much more conservative capital structure in the future, on account of its planned equity raising activities and the continuous payment of existing debt,” it added.
PhilRatings noted that as of September 2020, Cirtek’s consolidated revenues dropped 14.4% year on year to $59.5 million, primarily caused by lower revenue contribution of the company’s subsidiary Quintel, at $16.5 million.
The local debt watcher added that the net income of Cirtek for the nine-month period declined 1.7% year on year to $3.6 million, while the company’s net profit margin increased to 6.1% from January to September 2020.
“As of end-September 2020, Cirtek’s liquidity position remained satisfactory, with its current ratio and acid test ratio at 1.1x and 0.5x, respectively,” PhilRatings said.
Cirtek is a global technology company that focuses on wireless communication and has business interests in the manufacture and sales of semiconductor packages and other technology products.
On Tuesday, shares in Cirtek at the Philippine Stock Exchange dropped 2.31% or 19 centavos to close at P8.05 per piece. — Revin Mikhael D. Ochave
Sep 16, 2020
MANILA, Philippines — Cirtek Holdings Philippines Corp., through its wholly owned subsidiary Quintel USA Inc., has bagged a new contract.
Read moreOct 28, 2021
Published by Manila Times
THE Securities and Exchange Commission (SEC) has cleared the P3.5-billion preferred shares offering of tech manufacturer, Cirtek Holdings Philippines Corp.
The commission on Wednesday said it has approved Cirtek's registration statement in its meeting on October 26.
The registration statement covers 50 million preferred B-2 Subseries C and D shares priced at P50 apiece, with an oversubscription option of up to 20 million shares.
Cirtek looks to raise up to P3.44 billion from the offer, which will refinance the company's existing debt, partially pay its maturing debt a...
Read moreAug 16, 2021
Publishehd by Rappler
WHAT YOU NEED TO KNOW
Buy, sell, or hold? Who are the top gainers? How about the biggest losers? Are the bulls winning over the bears? Which company is going public next?
Bookmark and refresh this page for the latest news and analysis on stock market movers, corporate and financial news, business deals, and the economy in the Philippines.
LATEST UPDATES
Peso-dollar exchange rate - August 19, 2021 RAPPLER.COM
Most active stocks and PSEi closing - August 19, 2021 RAPPLER.COM
Bangko Sentral to accept digital bank applicants only until August 31
The Bangko Sentral ng Pilipina...
Read more