KUALA LUMPUR (June 15): Shares of Paragon Union Bhd (KL:PARAGON) extended their slide on Monday morning, hitting limit down for a second consecutive session after tumbling nearly 30%.
The counter fell 98 sen or 29.97%, to RM2.29, with some 154,000 shares changing hands at the market close, giving the group a market capitalisation of RM231.56 million. At the time of writing, Paragon Union has yet to reply to The Edge’s queries on the recent drop in its share price.
This marks the second straight day the stock has hit limit down, following a query from Bursa Malaysia last Friday over the unusual trading activity. In its response, the group said it was not aware of any corporate developments, rumours or reports that could have triggered the sharp decline, nor any other explanation for the trading pattern.
Since trading at RM4.88 on May 28, Paragon Union has shed approximately RM261.89 million in market value. Year to date, the stock is down 33.62%.
At its current price, Paragon Union is trading at a 12-month trailing price-earnings ratio of 194.2 times — the highest among its peers. In comparison, SSF Home Group Bhd (KL:SSF) trades at 38.7 times, while Sorento Capital Bhd (KL:SORENTO) is valued at 17.7 times.
On June 9, Paragon Union announced in its bourse filing that the conditional period for its agreement to dispose of its automotive carpet manufacturing business to Oceancash Pacific Bhd (KL:OCNCASH) for RM13.42 million — first announced in September 2025 — has been extended to Aug 10. The extension provides the parties with an additional two months to fulfil the conditions precedent under the agreement.
In early January, the group announced a joint venture with Japan’s largest secondary aluminium producer, Asahi Seiren Co Ltd, to establish Paragon Asahi Seiren Sdn Bhd.
The collaboration combines Paragon Union’s local market presence with Asahi Seiren’s advanced recycling technology, positioning the venture to tap into Southeast Asia’s growing recycled aluminium market. The JV aims to supply low-carbon materials to industries such as automotive, construction and sustainable packaging.
The venture is undertaken via Paragon Union’s wholly owned subsidiary, Paragon Metal Sdn Bhd, which holds a 60% stake, while Asahi Seiren owns the remaining 40%.
Paragon Union’s largest shareholder is executive chairman Koon Hoi Chun, who holds an indirect 53.22% stake through AKK Capital Sdn Bhd (39.54%) and Incredible Ark Sdn Bhd (13.68%), in addition to a direct 1.98% interest.
On the financial front, Paragon Union reported a net loss of RM730,000 on revenue of RM28.42 million for the third quarter ended March 31, 2026. No year-on-year comparison is available following a change in its financial year end from Dec 31, 2024, to June 30, 2025.