KUALA LUMPUR (July 30): Dufu Technology Corp Bhd's (KL:DUFU) net profit jumped over twofold to RM8.42 million for the second quarter ended June 30, 2024 (2QFY2024), from RM3.32 million a year ago, on the back of higher revenue.

Earnings per share rose to 1.60 sen from 0.60 sen per share, the precision machining parts and components manufacturer showed in a bourse filing.

Revenue for the quarter under review increased by 36.4% year-on-year to nearly RM65 million from RM47.7 million, thanks to higher contributions from hard disk drive (HDD) components.

The group declared a single-tier interim dividend of 1.5 sen per share, to be paid on Sept 20.

Net profit for the first half ended June 30, 2024 (1HFY2024) fell by 9.5% to RM12.8 million from RM14.2 million for 1HFY2023, mainly due to lower foreign exchange gains.

Revenue increased marginally to RM122.8 million from RM121.8 million for the same period.

Looking ahead, Dufu expects a modest increase in demand for its key operational domains — precision machining and the production of sheet metal and stamping components.

Additionally, global semiconductor sales and a rebound in the memory sector suggest a new growth cycle, supported by the end of inventory adjustments and increased demand in electronics and artificial intelligence (AI) applications, the group noted.

"We are confident that the toughest phase is now behind us, and we remain dedicated to seizing these growing opportunities, aiming to cultivate sustained growth for the group," it added.

Shares in Dufu settled seven sen or 3% lower at RM2.26 at Tuesday's market close, valuing the company at RM1.23 billion.