Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 3): Dufu Technology Corp Bhd’s net profit jumped 60.86% to RM15.92 million for the second quarter ended June 30, 2021, from RM9.9 million a year ago, on strong hard disk drives (HDD) components demand.

Quarterly revenue rose 20.18% to RM88.22 million, from RM73.41 million previously, mainly due to an increase in volume loading by customers related to HDD components, the group said in a filing to Bursa Malaysia.

Dufu also attributed the strong double-digit growth to the enormous demand for sheet metal welded assembly components and parts, and the buoyant orders coming from control and sensors in the non-HDD segment.

The group also noted that the manufacturing plants in Malaysia operated at a much-reduced level of workforce arising from the enforcements on Movement Control Order (MCO) in the preceding year’s corresponding quarter.

Dufu has declared an interim dividend of two sen per share, payable on Sept 24.

Meanwhile, the group’s net profit for the first half ended June 30, 2021 rose 47.41% to RM35.44 million, from RM24.04 million in the same period last year, with revenue up 23% to RM167.72 million from RM136.36 million.

Dufu said it is seeing healthy order flow from existing customers, along with confirmed orders from new customers.

The demand from HDD business remains robust with cloud demand leading the charge to fuel the group’s growth, it added.

The group is also positive on its non-HDD segment as semiconductor and tech hardware capital spending remains strong from domestic equipment exporters.

“All-in-all we are seeing strong visibility of orders for the second half of 2021 which should contribute positively towards the group’s earnings,” said Dufu.

Nevertheless, it said, the multiple implementations and various phases of MCO have significantly impacted businesses, which are constantly adapting operations to a much-reduced level of workforce and adhering to the stricter standard operating procedures to mitigate the risk of Covid-19.

Dufu said it will continue to streamline its business structure, improve its processes and optimize its operations.

"Buoyed by the abovementioned positive developments for the group vis-a-vis the associated risks on the unpredictability and uncertainty posed by Covid-19 pandemic on the group’s business operations and supply chain disruption, we are cautiously optimistic of the group’s financial performance in the coming third quarter of 2021," it said.

Dufu’s share price closed five sen or 1.11% lower at RM4.46, valuing the group at RM2.43 billion.

Edited ByS Kanagaraju
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