YOUNG Walter Kinneir has every reason to be as smug as a bug in a rug after beating dozens of adults - including his mum - to win thousands of dollars worth of prizes in a rug design contest. The eight-year-old Glenealy Junior School student obtained first prize in the open section of the Ideal Rug Design Competition which was held to coincide with the Ideal Home Expo. And competition organisers, Cathay Carpet Manufacturers, have turned Walter's colourful design into reality with a four-by-six-feet pure wool carpet which will be displayed with other winning designs at the expo. When the exhibition is over, the talented fourth grader will take the rug back to his Mid-Levels home where it will have pride of place in his bedroom. But while the rest of the Kinneir clan feel his winning effort deserves a place on the wall, sensible Walter feels the only place for a rug is on the floor. The youngster also won a certificate and a travel coupon valued at $3,000. ''I might use the travel coupon for a trip to America,'' said Walter. ''I want to take a look at the buildings because I want to be an architect just like my dad.'' Walter's mother, Mrs Trish Kinneir, and six-year-old brother Patrick, also entered the contest in the open section. The theme in all divisions was Home Sweet Home and Mrs Kinneir said that when she and her sons decided to design their rugs, they had looked through books until Walter settled on making a house the main pattern. ''Then he decided on the colours and devoted himself to designing the pattern for a whole week,'' she said. While competition judge Mr Kan Tai-keung described the rug as incorporating ''a clever use of colour and pattern'', no one could be more proud of young Walter than his mum who said it was ''just fantastic'' that he had won. The competition was divided into three divisions - the open section, the professional designers' section and the design students' section. More than 200 people from throughout Hongkong put their ideas to paper. Winner of the professional designers' section was textile designer Ms Annie Wan, while first prize in the students' section went to Tenniel Tsang from Rhode Island School of Design. The Most Creative Award of the competition was presented to a first year design student from Lee Wei Lee Technical Institute, 18-year-old Ms Amy Chan. Ms Chan featured the alphabet - her study subject at the moment - in three dimensions and used a rose pink to create the warmth which she felt a family rug should express.