KUALA LUMPUR (Oct 28): Hard disc drive (HDD) component maker Dufu Technology Corp Bhd (KL:DUFU) returned to the black in the third quarter, mainly due to lower foreign exchange (forex) losses.

Its net profit for the three months ended Sept 30, 2025 (3QFY2025), stood at RM10.5 million, compared with a net loss of RM3.2 million a year earlier, on the back of an 8.3% jump in revenue to RM71.37 million from RM65.89 million, a bourse filing showed on Tuesday (Oct 28).

The company attributed the earnings turnaround to lower forex losses of RM1 million compared to RM16.4 million a year earlier while higher sales of HDD components amid a pick-up in data storage demand helped boost its topline.

No dividend was declared for the quarter under review.

For the nine months ended Sept 30, 2025 (9MFY2025), net profit more than doubled to RM20.27 million from RM9.65 million with revenue increasing by 9.4% to RM206.48 million from RM188.74 million.

Dufu expects continued growth in data storage demand supported by the rapid expansion of AI-driven applications.

“The accelerating adoption of generative AI is expected to further fuel long-term growth in data storage requirements, particularly for cost-effective cold and warm storage solutions. We anticipate this positive momentum to build progressively in the coming quarters,” it said.

Nonetheless, the company noted that the US's reciprocal tariffs and trade spat with China may introduce near-term headwinds such as softer global demand and potential supply chain disruptions.

“To mitigate these risks and strengthen resilience, Dufu is proactively implementing key initiatives focused on enhancing operational agility and efficiency,” it said, which include ongoing cost optimisation efforts, productivity improvements and streamlining of internal processes.

Shares in Dufu ended two sen or 1.14% lower at RM1.73, valuing the company at RM945.69 million.