[Click eStock] "Global Tax Free, Undervalued Compared to Earnings"

FS Research analyzed on the 21st that Global Tax Free is undervalued compared to its performance. No investment opinion or target price was provided.

FS Research expects Global Tax Free's sales and operating profit this year to reach 99 billion KRW and 13.9 billion KRW, respectively. Sales are projected to increase by 100.6% year-on-year, with operating profit turning positive. Next year, sales are expected to reach 130.2 billion KRW and operating profit 26.2 billion KRW, representing increases of 31.5% and 88.9% year-on-year, respectively.

Kim Yong-ho, a researcher at FS Research, said, "From this year, as global demand for overseas travel expands, the company's performance is showing a steep growth trend," adding, "The inbound global tourists excluding China are increasing faster than expected, which is also favorable." He further stated, "Next year, as the rebound trend of Chinese inbound tourists becomes clearer, it is expected to rebound flexibly along with multiple re-rating."

Additionally, benefits are expected from the planned increase in the immediate refund limit to be implemented from next year. He explained, "The government plans to increase the immediate refund limit starting next year, which is expected to be beneficial," adding, "The current limit of 500,000 KRW per transaction and 2.5 million KRW in total will be doubled to 1 million KRW per transaction and 5 million KRW in total."

He emphasized, "Regarding products, since each country has a duty-free limit, the purchase amount ceiling may be partially restricted, but refunds are also possible in service sectors such as hotels and medical facilities, so a significant increase in expected sales per person is anticipated," adding, "The minimum refundable amount will also be lowered from 30,000 KRW to 15,000 KRW, allowing small refunds and thus expanding the customer base."