CIRTEK HOLDINGS PHILIPPINES

CORPORATION (CHPC)

INITIATING COVERAGE
CIRTEK HOLDINGS PHILIPPINES integrated radio frequency, microwave and millimeter
CORPORATION (CHPC) wave technology products.

The company operates out of its plant in Laguna

Technopark in Bian, Laguna and its sales office in
Cirtek Holdings Philippines Menlo Park, California to cater to its North American
116 East Main Avenue, Phase V, SEZ, Clients.
Laguna Technopark, Binan, Laguna.
Email : as.buyawe@cirtek.ph It only started with 3 clients in 1984 and has grown to the
Phone : (63) 49-5412310 to 12 loc 114 current count of 42. Its main product offerings include
Fax : (63) 49-5412317 protection packages, light sensor packages, real time
clock, voltage control oscillators, electronic relays and
Sector: power management devices. These products have posted
Industrial - Electrical Components & Equipment double digit growth rates in 2010 and have continued to
Outsanding Shares ( Post Offer): perform well in the first half of 2011.
419,063,353
Market Capitalization: CORPORATE STRACTURE
10,952,754,633.75
Complete Financials:
December 31, 2016

Board of Directors
Chairman:
Jerry Liu
Vice Chairman & President:
Roberto Juanchito Dispo
Director:
Nicanor Lizares
Director:
Rafael Estrada
Director:
Michael Stephen T. Liu
Director, Asst. Corporate Secretary:
Brian Gregory T. Liu
Treasurer /CFO /Compliance Officer & Director:
Anthony S. Buyawe
Independent Director:
Martin Lorenzo
Independent Director: Ernest Fritz Server
HISTORY
CHPC was duly organized as a corporation under the
COMPANY OVERVIEW laws of the Philippines and registered with the SEC on
Cirtek Holdings Philippines Corporation (CHPC) is the 10 February 2011. It is the holding company of two
holding company of Cirtek Electronics Corporation wholly-owned subsidiaries, CEC and CEIC, both of
(CEC) and Cirtek Electronics International Corporation
which are engaged in various services related to the
(CEIC).Through its subsidiaries, the Company is
primarily engaged in two major activities:(1) providing assembly and testing of semiconductor devices.
full service/turnkey solutions including wafer probing,
wafer back grinding, assembly, and packaging and final
testing of semiconductor devices, and (2) offering
complete manufacturing solutions for value-added, highly
CIRTEK HOLDINGS PHILIPPINES CORP.
Corporate Name Date of Incorporation
Cirtek Electronics 31 May 1984
Corporation
Cirtek Electronics 4 April 1995
International Corporation
INVESTMENT HIGHLIGHTS
Cirtek Holdings Philippines Corp. (CHPC) is a full
service provider for subcontract manufacturing of
semiconductor devices. It provides turn-key solutions,
which includes package design and development, wafer
probing, grinding, assembly and packaging, final testing
of semiconductor devices and delovery and shipment to
its customers end users.
CHPC offered up to 42.163 million shares with a price
Php 7 per share. This is equivalent to a offer market
capitalization of Php 1.14 billion.
The re-rating catalyts for the stock are faster earnings
growth on client contact acquisition , follow on offering
and strategic acquisitions.
The risk of the stock are the failure to secure clients
contract, competition, slowdown in global trade, labour
and currency risks and poor liquidity.
INITIAL PUBLIC OFFERING
Primary Offer of 80,000,000 Common Shares at an Offer
Price of 20.00 per Offer Share, with an Oversubscription
Option of up to 40,000,000 Common Shares by way of a
secondary offering to be listed and traded on the Main
Board of The Philippine Stock Exchange, Inc.
CUSTOMER GROWTH
On March 24, 1998, the Philippine Economic Zone
Authority (PEZA) approved CECs registration as an
ecozone export enterprise at the Laguna Technopark for
the manufacture of standard integrated circuits, discrete,
hybrid and potential new packages. Beginning October
30, 2002, the manufacture and export of integrated
circuits, discrete and hybrid transferred to PEZA from
BOI and became subject to the 5% gross income tax
incentive, as defined under Republic Act No. 7916, the
law creating the PEZA.
On April 20 2011, the Company filed an application with
the PEZA for income tax holiday on its new products.
The new products will be used as components for smart
phones, automotive sensor applications, battery chargers
and industrial applications.
FUND STRATEGIC ACQUISITIONS
The Companys acquisition strategy is to focus on leading
technologies, which would generate higher margins and
help accelerate the Companys growth. The Companys
target acquisitions must have a strategic fit with its
current operations and opportunities for the Company to
explore other business segments and add value to the new
businesses using its existing competitive strengths. Some
of these target acquisitions may include, but are not
limited to: a company that is involved in advanced
satellite technology, a company that provides high quality
mobile devices and solutions, and companies that will
give Cirtek the ecosystem and capability to engage in e-
commerce and e-finance. While the Company has
identified target companies and are currently in the early
stages of evaluation and due diligence, no definitive
agreements have been signed.
CAPITAL EXPENDITURES
The Company will use a portion of the net proceeds to
fund the expansion of its manufacturing plant in Laguna
Technopark. Approximately 332 million is going to be
allocated for the construction of a three- storey building
with a total floor area of about 8,175 square meters,
which will be an extension of the assembly and test
operations of CEC. The new building will also serve as a
warehouse for both CEC and CATS. The land on which
the building will be situated is owned by the Liu family.
Another 275 million of the net proceeds shall be
allocated for the purchase of manufacturing equipment for
CEC and CATS. The equipment that will be purchased for
CEC include backgrinders, wafer saw machines, die
attach machines, wire bond machines, molding systems,
DTFS systems, water jet deflash machines, electroplating
machines, and test handlers. For CATS, equipment to be
purchased shall include pick & place, screen printers,
reflow ovens, feeders and inline inspection systems for
additional SMT lines, auto bonders, millimeter wave and
microwave test stations, among others.
The remaining 23 million of the net proceeds shall be
used for other capital expenditure requirements which
include an MRP system upgrade, a DFX Tool software,
additional servers, MES licenses, and product
development systems.
 CIRTEK HOLDINGS PHILIPPINES CORP.
FINANCIAL REPORT

FACTORS AFFECTING THE COMPANYS

RESULTS OF OPERATIONS AND FINANCIAL
CONDITIONS
1. Cyclical Nature of the Electronics Industry

The worldwide electronics industry has experienced

peaks and troughs over the years. From 2011 to 2014, the
market has experienced single-digit growth.

2. Market Conditions for End-User Application of

Electronics

Market conditions in the electronics industry, to a large

degree, track those for their end-user applications. Any
deterioration in the market conditions for the end-user
applications of semiconductors that the Company
assembles and tests may reduce demand for its services
and, in turn, materially adversely affect its financial
condition and results of operations.

The Company has a diversified customer base that

operates in different industry spaces. Because of this, the

Companys products are likewise used in different
industries. This mitigates the effect of downturn in certain
industries to the Companys operating results and
financial outcomes. Customers are also geographically
diverse among Europe, U.S., and Asia; thus, the Company
is not dependent on a single geographical market.

3. Competitive Selling Prices of Semiconductor and RF/

Microwave Products

The semiconductor industry is characterized by a general

decrease in prices for products and services over time as a
result of product and technology life cycles.

The Company constantly reviews and makes innovations

in its product and assembly techniques to improve yield
and optimize productivity. The Company also prepares Currency in USD
cost-reduction roadmaps that allow it to meet the price
points expected by customers to be market competitive.
FY 2016 PERFORMANCE REVIEW

SHARE PRICE FORECAST

In 2016, cash reserves at Cirtek Holdings Philippines
The one analyst offering a 12 month price target Corp fell by 5.27m. However, Cash Flow from Investing
expects the share price price of Cirtek Holdings totalled 11.39m, indicating this company earned more
Philippines Corp to remain relatively unchanged over from the sale of existing assets than it spent on the
the next year. purchase of new assets. In addition the company used
1.58m for operations while cash used for financing
totalled 14.92m.