Second key M&A in 1H21
■ Late Tuesday night, KWG Living announced its second key M&A in 1H21,
and that it has achieved about 85% of its M&A target of 125m sqm this year.
■ We are positive on this given its quality public facilities management contract
in Shanghai district and inexpensive valuation of ~14x FY21 P/E.
■ The latest M&As should further improve its execution capability. Maintain Add with TP of HK$17. Trading at 14x FY22F P/E, it is 50% cheaper than peers.