Cirtek receives PRS A grade from PhilRatings

Jan 13, 2021

Cirtek receives PRS A grade from PhilRatings

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

  • Jan 16, 2025

    ‘Cirtek is top contract manufacturer in Q4’

    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 more
  • Apr 15, 2015

    Press Release  -  April 15, 2020

    Press Release - April 15, 2020

    Amidst the global pandemic, Cirtek Holdings Philippines Corp. through its wholly owned semiconductor arm

    Read more
  • Oct 27, 2021

    Cirtek aims to raise ₧3.5B from preferred shares offer

    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 ...

    Read more