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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Hwanwha Galleria’s duty-free biz to remain in red’

  • PUBLISHED :February 13, 2017 - 10:42
  • UPDATED :February 13, 2017 - 10:50
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[THE INVESTORHanwha Galleria Timeworld’s loss from its duty-free business will continue this year, said Shinhan Financial Investment on Feb. 13, maintaining a “neutral” rating.





Its fourth-quarter revenue leaped 55.3 percent on-year, beating the market estimate, but turned to red dragged down by the slow sales at Seoul and Jeju branches, said analyst Kim Gyu-ri.

Boosted by the decent growth in department stores, the retailer’s yearly sales this year will rise 16.1 percent on-year to 860.5 billion won (US$747.28 million), with 1.2 billion won operating profit, estimated the analyst. 

Its duty-free sector, however, will remain in the red with an estimated 33.2 billion won operating loss, from Seoul and Jeju branches, said Kim.

“While the inbound tourism from China is slowing down, licenses for downtown duty-free stores have fueled the competition,” according to the analyst suggesting a “neutral” rating until the loss from duty-free division shrinks.

By Hwang You-mee (glamazon@heraldcorp.com)

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