Celsius(CELH) INDUSTRIAL SECURITIES·2024-09-26 02:39Investment Rating - The report maintains an "Overweight" rating for the company [2] Core Views - Revenue and gross profit show steady growth: In H1 2024, the company's revenue reached $758 million, a YoY increase of 29.3%, while gross profit was $391 million, up 43.4% YoY. The gross margin improved by 5.1 percentage points to 51.6%, driven by lower raw material and packaging costs, as well as optimized freight costs [3] - North America remains the primary revenue driver, while Europe shows strong growth: In H1 2024, North America contributed $722 million, accounting for 95.3% of total revenue, with a YoY growth of 29.0%. Europe's revenue grew by 49.9% YoY to $31 million, representing 4.1% of total revenue [3] - The company is rapidly expanding its overseas distribution network: In March 2024, Celsius entered into an incentive program with Pepsi to expand its product portfolio in the US. Additionally, the company signed manufacturing, sales, and distribution agreements with Suntory Ocean for Australia and New Zealand, and with Suntory France for the French market. In Q2 2024, the company began selling through fitness channels and gyms in the UK and Ireland [4] Financial Projections - Revenue is expected to grow significantly: The report forecasts revenue of $1.88 billion, $2.64 billion, and $3.62 billion for 2024, 2025, and 2026, respectively, representing YoY growth rates of 42.5%, 40.5%, and 37.1% [4] - Net profit is projected to increase substantially: The company's net profit is expected to reach $310 million, $420 million, and $560 million in 2024, 2025, and 2026, with YoY growth rates of 71.3%, 34.8%, and 32.2%, respectively [4] Financial Metrics - Key financial indicators show positive trends: The company's gross margin is expected to remain stable at around 50% from 2024 to 2026, while the net profit margin is projected to be 16.6%, 15.9%, and 15.4% for the same years [5] - The company's asset turnover ratio is expected to improve from 1.0 in 2023 to 1.3 in 2026, indicating better efficiency in utilizing assets [13]