[Click eStock] "Global Tax Free, Time to Raise Earnings Expectations"

Ebest Investment & Securities analyzed on the 11th that it is time to raise expectations for the performance of Global Tax Free.

Global Tax Free's sales are generated by refunding the value-added tax included in the amount of goods purchased by foreign tourists at post-tax refund stores (general stores that are not duty-free stores such as department stores), and the refund scale generates a certain percentage (commission).

Researcher Jo Eun-ae of Ebest Investment & Securities stated in a report on the same day, "This year, the post-tax refund goods amount standard has been lowered and the refund limit has been significantly raised, so an increase in sales is expected due to the expansion of the refund amount per person," adding, "It seems possible to expand the influx of foreign tourists this year as well, and even assuming a conservative number of 15 million entrants, the high growth of the domestic refund business will continue." Major franchise stores of Global Tax Free include Olive Young, plastic surgery & beauty, and department stores.

Researcher Jo explained, "Global Tax Free operates three refund channels: airport refund, immediate refund, and downtown refund," and added, "Among these, immediate refund is a high-margin channel because it calculates by deducting value-added tax and refund commission at the time tourists purchase goods, so there are no labor costs or agency fees involved. The expansion of the sales proportion of the immediate refund channel is a factor for profitability improvement."

He further analyzed, "The sales mix improvement toward immediate refund and the operating leverage effect of downtown refund are expected to continuously improve the operating profit margin of the domestic refund business."

Additionally, he added, "The overseas refund business corporations with high-profit structures (France, Singapore, etc.) are expected to continue performance growth," and "Also, since the expected performance for this year does not include sales from country expansion (Thailand), this is an upside factor for performance."