KUALA LUMPUR (Aug 2): Dufu Technology Corp Bhd saw its net profit in the second quarter ended June 30, 2022 (2QFY22) rise 83.79% to RM29.26 million, from RM15.92 million a year earlier, supported by higher foreign exchange (forex) gains of RM6.20 million.
Earnings per share surged to 5.50 sen from 3.10 sen, its Bursa Malaysia filing showed on Tuesday (Aug 2).
Meanwhile, the Penang-based precision machining parts manufacturer said its quarterly revenue increased by 4.04% to RM91.79 million, compared to RM88.22 million, mainly due to the increase in revenue related to hard disk drive (HDD) components.
The group also has declared an interim single tier dividend of 2.5 sen per share,to be paid on Sept 23.
For the full six months period, the group’s net profit surged by 34.24% to RM47.58 million from RM35.44 million in the same period last year, underpinned by favourable product mix and forex gains.
Revenue, on the other hand, increased by 6.20% to RM178.11 million from RM167.72 million, on the back of higher HDD components' revenue.
When compared to the previous quarter, the group’s net profit edged higher by 59.75% from RM18.32 million in the immediate preceding quarter (1QFY22), while revenue came in higher by 6.32% from RM86.33 million in 1QFY22.
Moving forward, the group is seeing healthy order flow from its existing customers.
“The revenue stream from HDD remains positive with cloud demand leading the charge to fuel the group’s growth.
“We are also positive on the group’s non-HDD segment, as the semiconductor and tech hardware capital spending remains strong from domestic equipment exporters.
“All-in-all, we are seeing revenue growth for the year 2022, which should contribute positively towards the group’s earnings,” it said.
Having said that, the group is cognisant of the uncertainties posed by various challenges. It says that it is facing “acute shortage” of workers and other cost related challenges, being rising raw material costs, as well as freight costs.
It added that the Russia-Ukraine conflict and lockdowns in China could lead to possible supply chain disruptions, operational stoppages and shortage of raw material supply.
Dufu said it is cautiously optimistic of the group’s financial performance for 3Q2022.
Shares in Dufu closed unchanged at RM3.15 on Tuesday, giving it a market capitalisation of RM1.71 billion.
Source: TheEdge - 3 Aug 2022
