KUALA LUMPUR: Precision part maker Dufu Technology
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said strong demand for hard disc drives (HDDs) components boosted its second quarter earnings, as the company's share price surged to an all-to time high.
The stock shot up 17 sen, or 11.7% to an all-time high of RM1.62 before the latest quarterly results were released. Trading was active with more than 11 million shares transacted.
Dufu, in a filing with Bursa Malaysia after trading hours on Tuesday, said net profit in the three months ended June 30 surged 72% to RM11.8mil. Revenue rose 43% to 40.97mil.
The company said the improved results was also boosted by a favourable currency exchange rate during the quarter under review.
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Dufu said the long-term future of HDDs will likely rest with high capacity HDDs, particularly in data centres serving cloud storage applications.
“Global internet penetration, the rise in e-commerce in emerging markets, and the current trend for high-resolution media standards are the likely drivers for the continuing rise in global data storage demand,” it said.
In the meantime, the company said it will continue to improve its operational efficiency and keep a tight rein on costs to ensure price competitiveness on its products.
“The group is also working closely with existing and new customers in creating value to their supply chain and will continue to seek opportunity to venture into new business segments that can synergize with the group’s current business model,” it said.
