In today’s briefing:
- HD Hyundai Marine Solution IPO Industry Analysis
- ICTK IPO Valuation Analysis
HD Hyundai Marine Solution IPO Industry Analysis
- In this insight, we highlight some of the important industry factors impacting HD Hyundai Marine Solution.
- Eco-Friendly ships are high-value-added ships that require more parts than conventional ships and are mechanically more complex, so the unit cost of parts is higher than that of conventional ships.
- Therefore, the ship AM (aftermarket) is a key industry that is expected to benefit from higher customer demand and increase service prices.
ICTK IPO Valuation Analysis
- Our base case valuation of ICTK is target price of 28,694 won, which is 79% higher than the high end of the IPO price range.
- Our base case valuation is based on P/S multiple of 20.8x using our estimated sales of 18.1 billion won in 2025.
- ICTK’s operating margin improved from -129.9% in 2022 to -38.2% in 2023. We estimate its operating margin to improve further to -12.4% in 2024 and 17.7% in 2025.