KUALA LUMPUR: Dufu Technology Corp Bhd, a precision component maker, posted a surge in third quarter earnings, as stronger sales volume improved its margins.

       The group signalled strong order visibility going into the last quarter.

       "The Group is seeing healthy order flow from existing customers, and coupled with confirmed orders from new customers," it said in a filing today.

       "The demand from Hard Disc Drive (HDD) business remains robust 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," it added.

       For the three-month ended Sept 30, Dufu registered a net profit of RM20.25mil compared with RM12.8mil made a year ago.

       Revenue was up at RM91mil from RM76mil previously.

       Despite the strong demand, Dufu warned that higher freight costs and energy prices, as well as a surge in titanium and aluminium prices would impact its earnings.

       "Based on the abovementioned mixed developments for the Group coupled with the associated risks on the unpredictability and uncertainty posed by Covid-19 pandemic on the Group’s business operations, fluctuation in raw material prices and supply chain disruption, we are cautiously optimistic of the Group’s financial performance in the coming fourth quarter of 2021," it said.