KWG announced a mega MA (86m sq m GFA) which will triple its portfolio and markedly boost investors’ confidence on its execution, in our view. We assess the deal as very attractive in view of its size and undemanding valuation of 12x the target company’s FY20 profit. KWG has beaten our FY22F portfolio forecast; management said it has no doubt KWG will beat its FY21-22F EPS guidance after this proposed MA. Reiterate Add with TP of HK$10.85. It trades at an attractive valuation of 21x FY21F P/E – about 40% cheaper than its peers. KWG is our sector top pick.