Dowoo Insys IPO Valuation Analysis

• Our base case valuation of Dowoo Insys is target price of 40,667 won per share, which is 27% higher than the high end of the IPO price range (32,000 won).

• We used an EV/EBITDA multiple of 14.9x to value the company, which is 10% premium to the comps' valuation multiples in 2024.

• The decline in operating margin remains one of the biggest risk factors on the company. Its major customers such as Samsung Display are putting increasing pressure to reduce its prices.