PETALING JAYA: Dufu Technology Corp Bhd is hopeful that it is navigating the tail end of an unprecedented downturn in the storage sector, after experiencing a dull 2023 which it said was the lowest point of the hard disk drive (HDD) market.
It believes there is a modest demand increase in precision machining of HDD and production of sheet metal, as well as stamping equipment and components, segments within its key operational domains.
Dufu saw its net profit plunged 59.3% year-on-year (y-o-y) to RM4.4mil for the first quarter ended March 31, 2024 (1Q24) while revenue fell 22% to RM57.9mil.
In a filing to Bursa Malaysia yesterday, the company attributed the decrease in profits to the reduction in revenue from HDD components and higher overhead costs incurred during the quarter in review.