Korea Stock Market Insights

Tag: 204620

  • Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses?

    Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses? 대표 차트 이미지

    Global Tax Free IR: Key Takeaways

    Global Tax Free held an IR meeting for institutional investors on August 28th. The key focus was on the continued strong growth of the tax refund business and the turnaround strategies for the struggling cosmetics and webtoon businesses.

    1. Tax Refund Business: Continued Growth

    Driven by the increasing number of inbound tourists, the tax refund business recorded an impressive 45.3% growth year-on-year. The expansion of the immediate refund system and the increase in the limit also contributed positively.

    2. Cosmetics & Webtoon Businesses: Struggling

    On the other hand, the cosmetics business faced a setback with a 54.4% decrease in sales due to intensified market competition and changing consumer trends. The webtoon business also struggled, recording a 53.2% decline due to a base effect and increased competition.

    3. Key IR Message: Turnaround Potential

    Global Tax Free attempted to reassure investors by presenting turnaround strategies for the struggling businesses. However, the market’s response remains to be seen. Concrete efforts to generate tangible results and secure future growth engines are essential for a genuine turnaround.

    Investor Action Plan

    If you’re considering investing in Global Tax Free, carefully analyze the information presented during the IR meeting and critically evaluate the company’s future growth potential. The continued growth of the core business and the turnaround of the struggling businesses are key factors in making investment decisions. Also, carefully consider changes in the macroeconomic environment and risk factors.

    What are the main businesses of Global Tax Free?

    Global Tax Free’s main businesses are tax refunds for foreign tourists, cosmetics, and webtoons.

    How is Global Tax Free’s recent performance?

    The tax refund business is performing well, but the cosmetics and webtoon businesses are struggling.

    What are the key takeaways from this IR meeting?

    The key takeaways are the continued growth of the tax refund business and the presentation of turnaround strategies for the struggling businesses.

    Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses? 관련 이미지
    Global Tax Free IR: Soaring Tax Refunds, but Can They Overcome Struggling Businesses? 관련 이미지

  • Global Tax Free (204620) Q2 2025 Earnings Analysis: Soaring on Tax Refunds!

    1. Q2 2025 Performance: The Power of Tax Refunds

    Global Tax Free achieved a turnaround in Q2 2025, reporting revenue of ₩79.2 billion and operating profit of ₩13.3 billion. The tax refund business, contributing 87.5% of total revenue, proved to be the key growth driver. The cosmetics segment also saw significant improvement with 61% growth.

    2. Segment Breakdown: Tax Refunds vs. Webtoons

    • Tax Refunds: Surging 46% on the back of increased international tourism and the K-beauty boom. Exchange rate volatility remains a concern.
    • Cosmetics (Swanicoco): Achieved 61% growth thanks to strengthened online presence and enhanced product competitiveness. Cost management is crucial.
    • Webtoons (Fingerstory): Revenue declined 53.5% due to business restructuring. Efforts are underway to improve profitability through platform enhancements and marketing.

    3. Investment Takeaways: Opportunities and Risks

    Opportunities: Steady growth in tax refunds, promising growth trajectory in cosmetics, and a strong financial position.

    Risks: Exchange rate fluctuations, struggling webtoon business, and potential global economic slowdown.

    4. Investment Strategies: Short-Term vs. Long-Term

    • Short-Term: Focus on the impact of the peak season for tax refunds and upcoming earnings releases.
    • Long-Term: Monitor the turnaround of the webtoon business and the results of new business investments.

    Frequently Asked Questions

    What are Global Tax Free’s main businesses?

    Global Tax Free’s main businesses are tax refunds, cosmetics (Swanicoco), and webtoons (Fingerstory). Currently, the tax refund business contributes the largest portion of revenue.

    What are the key risks to consider when investing in Global Tax Free?

    Exchange rate fluctuations and the underperformance of the webtoon business are key risks to consider. The potential for a global economic slowdown should also be monitored.

    What is the outlook for Global Tax Free?

    The outlook is positive, given the consistent growth of the tax refund business and the growth trajectory of the cosmetics segment. However, the turnaround of the webtoon business remains a critical factor.