Congratulations to the ECS Team! Another phenomenal Q2 result...

Congratulations to the ECS Team! Another phenomenal Q2 result driven by quality product, efficient management and an in-demand market.

60% increase in outdoor cropping, this quarter/following will have utilisation of new indoor growing conditions for increased yield, expected VESIsorb approval by Q3 to supply a patented value-add product to existing products and increased demand from customers. You cannot pave a better runway for these guys to grow into.

Estimated 28mil FY revenues, ~$1.2-3mil in NPAT as a lower estimate with minimal growth on current numbers.
Upper limit for FY25 could roughly be 50-70mil revenues with ~$5-7.5mil in NPAT. Forward estimate would put current pricing to earnings of 4. Given market standard is in the realm of 16, trading at a discount to attribute risk I’d like to see ECS trading at multiples of 12 on forward estimates. So my 6-12 month revised price target is 6.6c on the lower limit, up to 9-11c if trading as a speculative with an inflated estimate.