DUFU 7233 DUFU TECHNOLOGY CORP. BERHAD’s shares tumble after projecting continued weak demand for HDD components

 DUFU 7233 DUFU TECHNOLOGY CORP. BERHAD’s shares tumble after projecting continued weak demand for HDD components

KUALA LUMPUR (Nov 2): Dufu Technology Corp Bhd's share price fell sharply on Wednesday (Nov 2) after the company warned of prolonged demand weakness for its hard disk drive (HDD) components.

The counter closed 17.84% or 43 sen lower at RM1.98, the lowest since May 12, 2020, when it stood at RM1.88. It was the day's third biggest loser on Bursa Malaysia.

The stock was down throughout the day's trading session after opening at RM2.30, below Tuesday's closing price of RM2.41.

Releasing its financial results for the third quarter ended Sept 30, 2022 on Tuesday, the Penang-based precision machining parts maker said its final quarter results were expected to be weaker than the previous year’s final quarter.

"Based on the forecast in hand, we foresee HDD demand will continue to remain weak in line with our recent industry checks suggesting inventory adjustments will likely continue at least for the next quarter towards end of 2022. On top of that, demand is seasonally weak in the first quarter of 2023,” said Dufu.

Dufu's trading volume on Wednesday was the highest among losing counters on Bursa Malaysia, at 13.68 million shares.

Dufu shares have tumbled 53.86% year-on-year from RM4.29 on Nov 2, 2021.

http://www.theedgemarkets.com/article/dufus-shares-tumble-after-projecting-continued-weak-demand-hdd-components