Following is a response from Senior DHS staff member, Tom Pullum:
Yes, hw70 is the number of standard deviations from the WHO standard, but it is multiplied by 100. Below I will paste the Stata code for the basic anthropometric indicators.
gen HAZ=hw70/100 if hw70>-600 & hw70<600
gen WAZ=hw71/100 if hw71>-600 & hw71<500
gen WHZ=hw72/100 if hw72>-500 & hw72<500
gen stunted=0
gen underweight=0
gen overweight=0
gen wasted=0
replace stunted=1 if HAZ<-2
replace underweight=1 if WAZ<-2
replace overweight=1 if WHZ>2
replace wasted=1 if WHZ<-2