[Click eStock] "Global Tax Free, Expecting Growth in China Inbound"

[Asia Economy Reporter Hyunseok Yoo] Meritz Securities analyzed on the 14th that Global Tax Free is expected to benefit from the growth of Chinese inbound tourism. No investment opinion or target price was provided.

Global Tax Free, established in 2005, is the leading tax refund specialist company in the domestic market. In October 2018, it expanded its scale by acquiring the domestic tax refund business division of KTIS.

Meritz Securities forecasted that Global Tax Free's sales and operating profit for the fourth quarter of last year would reach 14.5 billion KRW and 2.4 billion KRW, respectively. Yoon Juho, a researcher at Meritz Securities, stated, "The average monthly number of Chinese visitors in the first half of last year was 389,000, which is similar to the annual average of 399,000 in 2018. From July to November last year, the average was 462,000, indicating that the absolute level of monthly Chinese inbound visitors has increased compared to 2018 and the first half of last year."

He added, "Chinese inbound tourism typically shows seasonality with a decline in December compared to October each year. However, in December last year, growth is expected compared to November 2019, and the decline compared to October is expected to be smaller."

In particular, this year, sales are expected to exceed 60 billion KRW, and operating profit could also reach 12 billion KRW. He explained, "There were costs incurred due to the relocation of KTIS affiliates acquired in 2018. As the relocation of affiliates is completed, no additional costs are expected this year."

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