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

  • Aug 16, 2021

    Cirtek lists P1.37-B rights shares with bonus warrants

    Published by Manila Bulletin

    Cirtek Holdings Philippines Corporation listed at the Philippine Stock Exchange its stock rights offering (SRO) shares worth P1.37 billion as well as the bonus detachable warrants that came with them.

    The SRO consisted of 249.44 million common shares sold at an offer price of 5.50 per Entitlement Right at the ratio of 1 Entitlement Right for every 1.68 common shares to eligible shareholders of record as of 7 July 2021.

    In addition to the rights shares, Cirtek issued 249.44 million Bonus Detachable Warrants free of charge. The Exercise Price for the Bonus Detachable...

    Read more
  • Jul 14, 2021

    Quintel renews deal with N. American telcos

    Published By Malaya Business Insight

    Cirtek Holdings Philippines Corp.’s telecom base antenna unit Quintel USA Inc. has secured five more years of contract to supply antennas to two leading carriers in North America.

    Cirtek said this is following a series of new product introductions released by Quintel when 5G is at an inflection point.

    “Quintel’s 5G products are precisely designed with the customer’s network architecture in mind allowing synergies in terms of backwards compatibility to existing infrastructure while providing 5G capability at a fraction of the cost against competitor products...

    Read more
  • Jul 05, 2021

    Cirtek receives PSE nod for stock rights offer, warrants

    Business World

    CIRTEK Holdings Philippines Corp. received the approval of The Philippine Stock Exchange, Inc. (PSE) for its stock rights offering with bonus detachable warrants.

    The company said in regulatory filing on Wednesday that shareholders eligible to participate in the stock rights offering should pass the requisite documents and participate during the offer period scheduled on July 12 to July 22.

    Listing for both the rights shares and the bonus detachable warrants are tentatively scheduled for Aug. 16, while the ex-rights date and record date will be on July 2 and July 7, respectively...

    Read more