Pangaea Connectivity Technology (HKG:1473) expects net profit for the year ended March 31 to increase 30% to 50% from HK$30.5 million a year earlier, according to a Thursday Hong Kong bourse filing.
Shares of the firm were down nearly 19% in late-morning trade on Friday.
Pangaea Connectivity attributed the expected profit growth to higher turnover driven by rising demand for artificial intelligence data center products amid growing computing, storage, and networking requirements from major cloud operators.
The company issued the update after noting recent increases in its share price and trading volume since about mid-May.