KUALA LUMPUR (Oct 27): Dufu Technology Corp Bhd (KL:DUFU) reported its highest quarterly net profit in four years driven by stronger hard disk drive (HDD) component sales and a fair value gain of RM2.8 million from investments in listed shares.
Net profit for the third quarter ended Sept 30, 2026 (3QFY2026) rose 48% to RM15.55 million from RM10.5 million a year earlier, and surpassed the RM13.9 million recorded in the preceding quarter.
Revenue grew 25.6% to RM89.62 million from RM71.37 million, according to a filing with Bursa Malaysia on Tuesday.
Dufu did not declare any dividend for the quarter under review. The group had earlier paid a first interim dividend of two sen per share for FY2026 on Sept 18.
The precision components manufacturer said sales of HDD-related components increased 22%, while sales of non-HDD components rose 36%.
For the first nine months of FY2026, net profit jumped 82.9% to RM37.07 million from RM20.27 million a year earlier, while revenue increased 25.1% to RM258.31 million from RM206.48 million.
On its outlook, Dufu said: "The group expects demand from the HDD segment to remain strong, particularly driven by nearline and enterprise storage requirements supporting artificial intelligence, cloud computing, and data centre applications."
However, it cautioned that foreign exchange movements could affect its earnings as most its revenue is denominated in US dollars.
The group also noted that higher oil prices arising from geopolitical tensions in the Middle East have increased raw material, transportation and energy costs.
Meanwhile, Dufu said its planned expansion into machining, fabrication, sheet metal and stamping operations remains 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.
Dufu’s share price closed 19 sen or 6.38 % higher at RM3.17 on Tuesday, valuing the group at RM1.74 billion. Year to date, the stock has risen 98.13%.