KUALA LUMPUR (Nov 2): Dufu Technology Corp Bhd's net profit jumped 57.51% in the third quarter ended Sept 30, 2021 (3QFY21) to RM20.25 million, from RM12.86 million in the same quarter a year ago, as it enjoyed higher revenue, economies of scale and a favorable product mix.

Revenue rose 19.8% to RM90.99 million from RM75.95 million, mainly due to the higher volume loading by customers related to Hard Disk Drives (HDD) components, Dufu said in a bourse filing Tuesday.

“On top of this, the group also registered strong double-digit growth following 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,” said Dufu, which is engaged in the manufacturing of industrial products and the trading of computer disk-drive related components.

Compared with the immediate preceding quarter of 2QFY21, its net profit increased 27.2% from RM15.92 million, as revenue rose 3.14% from RM88.22 million.

For the nine months ended Sept 30 (9MFY21), Dufu’s net profit climbed 50.92% to RM55.69 million from RM36.9 million in 9MFY20, as revenue rose 21.85% to RM258.71 million from RM212.31 million.

On prospects, the group said it is seeing a healthy flow of orders from existing customers, as well as new customers.

“The demand from the HDD business remains robust, with cloud demand leading the charge to fuel the group’s growth. We are also positive on the group’s non-HDD segment as the semiconductor and tech hardware capital spending remains strong from domestic equipment exporters.

“All-in-all, we are seeing strong visibility of orders for the final quarter of 2021, which should contribute positively towards the group’s full-year earnings,” it added.

Dufu shares closed five sen or 1.14% higher at RM4.42 apiece on Tuesday, bringing its market capitalisation to RM2.93 billion. Year to date, the counter has climbed 35.6% from when it was trading at RM3.26 on Dec 31, 2020.