Sung Woo IPO Valuation Analysis

• Our base case valuation of Sung Woo is target price of 27,981 won per share, which is within the IPO price range of 25,000 won to 29,000 won per share.

• Given the lack of upside relative to the IPO price range, we have a Negative view of this IPO.

• Our base case valuation of 27,981 won per share is based on a P/E of 16.9x based on net profit of 24.9 billion won in FY23.