KUALA LUMPUR (May 5): Dufu Techonology Corp Bhd’s first quarter net profit more than tripled to RM14.14 million from RM4.17 million a year earlier, on higher revenue and unrealized forex gain, as a result of the stronger US dollar.
Revenue for the quarter ended March 31, 2020 rose 27.55% to RM62.95 million from RM49.35 million, according to the group’s filing with Bursa Malaysia.
Dufu attributed the higher revenue to an increase in volume loading by customers related to hard disk drives (HDD) components.
On prospects, Dufu remains confident that the group has enough financial liquidity to weather the storm, on the back of its strong footing in the first quarter and with current orders in hand.
“We are cautiously optimistic that the group will still be able to achieve satisfactory results in the financial year ending 2020, despite the above uncertainties,” the group said.
This, it said, is despite concerns on the eventual impact to the group’s operations that will largely be dependent on the scale and length of the Covid-19 pandemic.
“On top of this, we are concerned with a potential supply chain disruption risk which may temporarily impact the demand of our own and customer’s product lines. Because of these reasons, we are anticipating a very challenging and volatile business environment,” Dufu said.
Dufu said its plant in Guangzhou, China, which was affected by a compulsory shutdown in January, has since recovered.
It added that its plants in Malaysia were also affected by the movement control order but the group is now back with full workforce since April 30, after the government allowed certain economic sectors to operate without restriction to their operating hours, with 100% workforce allowance.
Shares of Dufu closed up 11 sen or 2.8% at RM4.02 today, valuing the group at RM1.03 billion.
The counter had fallen to RM1.99 on March 19 from a peak of RM4.86 on Feb 21, but is still up 122% over the past one year.