KUALA LUMPUR (May 7): Hard disk drive (HDD) component maker Dufu Technology Corp Bhd (KL:DUFU) reported a 9.44% increase in first-quarter net profit, attributed to higher sales as a stronger ringgit squeezed margins.

Net profit for the three months ended March 31, 2026 (1QFY2026) stood at RM7.63 million compared with RM6.97 million a year earlier, on the back of a 14.1% jump in revenue to RM76.29 million from RM66.88 million, a bourse filing showed on Thursday.

Malaysia remains the group's largest revenue contributor at RM78.4 million, followed by Singapore at RM56.7 million and China at RM18.02 million.

No dividend was declared for the quarter under review.

Despite achieving higher sales, the group flagged risks of supply chain disruption caused by elevated energy and transportation costs. Additionally, the strengthening ringgit against the US dollar had squeezed profit margins and driven up production costs, as its revenue is denominated in US dollars.

‘’Notwithstanding these near-term headwinds, the group maintains a healthy balance sheet and strong liquidity to support reinvestment and consistent dividend payouts,’’ Dufu noted.

Looking ahead, Dufu remains positive on its outlook by expecting steady demand from the HDD segment nearline and enterprise storage requirements supporting cloud and data centre applications. This supports the group’s expansion into fabrication, sheet metal and stamping, which is on track for 2027.

Headquartered in Penang, Dufu operates four manufacturing sites — three in Malaysia and one in China. They provide precision machined parts to diverse industries, ranging from hard disk drives and sensors to telecommunications and automotive equipment. 

As at market close on Thursday, Dufu’s share price was up four sen or 2.17% at RM1.88, valuing the company at RM1.03 billion.