KUALA LUMPUR (June 12): Paragon Union Bhd (KL:PARAGON), which manufactures and distributes carpets, rugs and car carpets, was queried by Bursa Malaysia after unusually heavy trading caused its share price to hit limit-down in Friday’s afternoon trading session.
The stock rose to RM4.65 before falling RM1.39 or 29.83% to its limit-down level of RM3.27 shortly after trading resumed in the afternoon. It closed at the same level, shedding nearly RM140 million in market value with 2.88 million shares traded.
Despite the fall, the stock is still 108.04% higher than a year ago.
Bursa has ordered Paragon Union to clarify whether there are any undisclosed development, rumour, or report that could have triggered the surge. The exchange also asked the company to confirm its compliance with listing rules, particularly on the timely disclosure of material information.
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As at Thursday’s closing price of RM4.66 per share, AskEdge data showed its 12-month trailing price-to-earnings (PE) ratio at 276.7 times, the highest among its peers. Its closest peer is bathroom and kitchen sanitary ware distributor Sorento Capital Bhd, which has a PE ratio of 17.6 times.
Paragon Union’s share performance comes in the wake of Tanco Holdings Bhd’s (KL:TANCO) sell-off, which wiped out nearly RM10 billion of its market capitalisation in a week. The stock, which had a PE ratio of 1,052.5 times at the start of the week, saw four consecutive limit-downs before regulators ordered a freeze on its lower limit at 20 sen a share. The stock closed unchanged at 20 sen on Friday, valuing the company at RM1.23 billion, with 22.37 million shares traded.
Paragon Union’s largest shareholder is its executive chairman Koon Hoi Chun, who holds an indirect 53.22% interest via his investment vehicle AKK Capital Sdn Bhd (39.54%) and holding company Incredible Ark Sdn Bhd (13.68%). He also owns a direct 1.98% interest.
He first emerged as a substantial shareholder of the company in 2021 after buying a 60.41% stake via AKK Capital Sdn Bhd. Prior to that, neither Hoi Chun nor AKK owned any shares in the company.
Hoi Chun is the son of Koon Poh Kong, co-founder and executive director of Press Metal Aluminium Holdings Bhd (KL:PMETAL). He is also the nephew of Koon Poh Keong, who is among Malaysia’s wealthiest individuals and leads the Koon family business empire.
Hoi Chun has no other known shareholdings currently, but he was formerly a substantial shareholder of Kejuruteraan Asastera Bhd back in 2021, according to a Bursa filing. The company changed its name to Kinergy Advancement Bhd (KL:KINERGY) in 2023.
For the third quarter ended March 31, 2026 (3QFY2026), Paragon posted a net loss of RM0.73 million and revenue of RM28.42 million. Due to a change in its financial year-end from Dec 31, 2024, to June 30, 2025, there are no comparative figures for the corresponding quarter.