KUALA LUMPUR (Oct 26): Paragon Union Bhd, whose share price surged as much as 67.12%, has been slapped with an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd.
This morning, Paragon Union rose to a high of 61 sen — the highest since July 2007 — up 24.5 sen or 67.12% compared to Friday's closing price of 36.5 sen.
At noon break, while the stock pared some of its gains at 54.5 sen, it was still up 18 sen or 49.32%, placing it among Bursa Malaysia’s top 10 gainers. Some 3.56 million shares were traded, exceeding its 200-day average volume of 18,370 shares.
The stock exchange regulator had asked the group to make due enquiries with directors, major shareholders and such other relevant persons before responding to the query.
This is to determine whether there are any unannounced corporate developments or any rumour or report concerning the business and affairs of the group that may account for the trading activity.
Paragon Union is mainly involved in the manufacturing and distribution of carpets. Its product portfolio includes commercial carpets, rugs, automotive components and noise, vibration and harshness (NVH) components.
For the cumulative six-month ended June 30, 2020 (6MFY20), Paragon Union’s net loss ballooned to RM4.21 million from RM1.74 million a year ago as revenue fell 48.67% to RM14.07 million against RM27.42 million a year ago.
The group said the decline in revenue was due to decreased sales in both automotive and commercial sectors, on account of the Covid-19 pandemic and ensuing movement control order (MCO) imposed by the government to curb the spread of the virus.
The group's financial year ends on Dec 31. It is notable that the group’s financial year performance has not been stable in the past.
For the past five financial years, there were two financial years that reported losses — RM1.04 million in FY17 and RM1.48 million in FY18.
Meanwhile, the group reported a full-year net profit of RM1.98 million in FY15, RM3.71 million in FY16 and RM1.81 million in FY19.