[Click eStock] "Global Tax Free, Olive Young & K-Beauty Drive Strong Performance Growth"

On the 4th, DS Investment & Securities forecasted that Global Tax Free, a domestic tax refund company, will see performance growth this year thanks to foreign sales at Olive Young, dermatology, and plastic surgery sectors.

Researchers Kim Suhyun and Kang Taeho maintained a 'Buy' rating on Global Tax Free and raised the target price to 6,500 KRW, stating this outlook.

They explained, "Foreign sales at Olive Young and dermatology consumption are expected to grow by more than 100% compared to the previous year," adding, "In January alone this year, foreign tourists' dermatology consumption reached 56.4 billion KRW, a 127.8% increase year-on-year, and plastic surgery consumption also showed a growth rate of 33.7%." They emphasized, "There is a high possibility that Global Tax Free's sales and operating profit this year will exceed estimates." Olive Young accounts for 20-25% of total refund sales, while dermatology and plastic surgery account for about 17-20%.

Their analysis indicates that the skin beauty and plastic surgery market is already acting as a 'booster' for Global Tax Free's performance. Last year, Global Tax Free posted consolidated sales of 129.7 billion KRW and operating profit of 21.8 billion KRW, growing 38.9% and 47% year-on-year, respectively. In particular, the tax refund business segment's separate sales exceeded 100 billion KRW, estimated to have grown 50% compared to the previous year. Annual net income also turned positive for the first time since COVID-19, reaching 5.4 billion KRW.

They explained, "Despite a temporary decline in foreign inbound traffic during the off-season in Q4 and the December martial law, foreign consumption in the skin beauty and plastic surgery markets increased, driving performance improvement."

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