Dufu’s net profit up 61% in second quarter

Hard disk drive components produced by Dufu Technology.

PETALING JAYA: Dufu Technology Corp Bhd saw its net profit increase 60.9% to RM15.9mil for the second quarter (Q2) ended June 30, 2021, from RM9.9mil in the corresponding quarter last year.

The company said in its Bursa filing that the higher earnings were attributable to higher revenue.

Dufu announced a first interim dividend of 3.75 sen per share.

During the quarter in review, the company’s revenue grew 20.2% to RM88.2mil from RM73.4mil in the previous corresponding period, while its earnings per share (EPS) increased to 3.10 sen from 1.90 sen.

“The increase in revenue was mainly due to the increase in volume loading by customers related to Hard Disk Drives (HDD) components,” it said.

“On top of this, the group also registered a 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,” it added.

For the cumulative period, Dufu’s net profit grew 47.41% to RM35.4mil from RM24mil in the six months to June 2020. Its cumulative EPS consequently increased to 6.8 sen from 4.7 sen previously.

For the six months in review, its revenue rose 23% to RM167.7mil from RM136.4mil previously.

Dufu said it is cautiously optimistic of the group’s financial performance for the remaining part of the year. “The group is seeing healthy order flow from existing customers, and coupled 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 said.

“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,” it added.

All-in-all, Dufu said the group is seeing strong visibility of orders for the second half of 2021 which should contribute positively towards its earnings.

“Nevertheless, the multiple implementations and various phases of movement control order in Malaysia have significantly impacted businesses, which are constantly adapting operations to a much-reduced level of workforce and adhering to the stricter SOP at all times to mitigate the risk of Covid-19 especially in workplaces,” it said.

Dufu’s shares closed five sen lower at RM4.46 yesterday.

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