KUALA LUMPUR (July 28): Dufu Technology Corp Bhd (KL:DUFU) reported its highest quarterly earnings in nearly four years  on the back of higher hard disk drive (HDD) component sales. Net profit rose nearly fivefold to RM13.9 million from RM2.8 million a year earlier.

Revenue for the three months ended June 30, 2026 (2QFY2026) climbed to the strongest level in nearly five years, with a 35.4% increase to RM92.4 million from RM68.2 million, the HDD component maker said in a bourse filing on Tuesday.

The quarterly earnings were the company's highest since 3QFY2022, when it reported a net profit of RM16.42 million. Revenue, meanwhile, was the highest since the company recorded RM94.03 million in 4QFY2021.

The board declared an interim dividend of two sen per share, payable on Sept 18.

For the first half of FY2026, net profit more than doubled to RM21.52 million from RM9.76 million a year earlier, while revenue increased 24.9% to RM168.69 million from RM135.11 million.

Looking ahead, Dufu said demand for HDD components is expected to remain strong, supported by nearline and enterprise storage requirements driven by artificial intelligence, cloud computing and data centre applications.

The company, however, warned that earnings may be partly moderated by foreign exchange movements and higher transportation and energy costs arising from geopolitical uncertainties.

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.

Dufu’s share price closed nine sen or 3.57% lower at RM2.43 on Tuesday, valuing the company at RM1.33 billion. Year to date, the stock has risen 52%.