DH Shipbuilding IPO Valuation Analysis
Our base case valuation of DH Shipbuilding IPO is target price of 67,576 won per share, which represents a 35% upside to the high end of the IPO price range.
Given the solid upside, we have a Positive view of this IPO. Our valuation sensitivity analysis suggests a market cap range of 2.3 trillion won to 2.9 trillion won.
Our target P/B valuation multiple of 5.7x is 20% premium to the comps' P/B valuation multiple which is justified due to the company's higher ROE, operating margins and stronger balance sheet.
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