EVS (ASX) Ann: Transformational agreement to launch Envirosuite in China

EVS envirosuite limited

1.19%

8.3¢

First 44 Last

Share
Profile

Follow
Lindo

2,680 Posts.

17

11/09/19

19:56

Post #: 40387864
Share

Originally posted by Sky's the limit: ↑

OK, so here's some crazy hypothetical that's running through my head.

Since Zhigang Zhang partnered with PET, their revenue went from $3.8M to a projected $27M-$30M by Dec'19. So taking the middle ground of $28.5M gives you a 7.5 fold increase. At the latest figures, 6/7's of revenue were down to China, and 1/7 rest of the world.

IF, (& I've no idea how closely the EVS experience will match PET's), but IF, EVS were to follow a similar path of a 7.5 fold increase in both Revenue and ARR, that would give them Revenue of $53M and an ARR of $42M. If the first $12M of ARR covers expenses to breakeven, and the rest of the $30M of ARR translates to a Profit Margin at 65% (which I actually think is a little conservative), then you'd end up with Profits of $19.5M.

Where it gets a bit crazy is if you put those figures next to PME's

.......................................................Revenue. Profit. Market Cap
PME (latest figures) $50.1M $19.1M $3,349M
EVS (Hypothetical in 2 years) $53.2M $19.5M $87M (current)

I know it can't possibly happen for the simple reason that I can't get that rich!!

But it's nice daydreaming about it.

Obviously you can question one or two of the assumptions, but given the basic premise, you get the gist.

Expand

Interesting read you sure are excited about EVS
The annual recurring revenue expected 2020 is 12 m plus 14 m pipeline with a new china contract now in the making ,old forecast could come in to ?
Their bundling of SAAS will lead to higher profits
On the China front Wastewater treatment + ENVIRONMENTAL Regulators uses+ end to end solutions
As we know their profits in using SAAS
Must not forget our new investor MR Zhang

Originally posted by Sky's the limit: ↑

OK, so here's some crazy hypothetical that's running through my head.

Since Zhigang Zhang partnered with PET, their revenue went from $3.8M to a projected $27M-$30M by Dec'19. So taking the middle ground of $28.5M gives you a 7.5 fold increase. At the latest figures, 6/7's of revenue were down to China, and 1/7 rest of the world.

IF, (& I've no idea how closely the EVS experience will match PET's), but IF, EVS were to follow a similar path of a 7.5 fold increase in both Revenue and ARR, that would give them Revenue of $53M and an ARR of $42M. If the first $12M of ARR covers expenses to breakeven, and the rest of the $30M of ARR translates to a Profit Margin at 65% (which I actually think is a little conservative), then you'd end up with Profits of $19.5M.

Where it gets a bit crazy is if you put those figures next to PME's

.......................................................Revenue. Profit. Market Cap
PME (latest figures) $50.1M $19.1M $3,349M
EVS (Hypothetical in 2 years) $53.2M $19.5M $87M (current)

I know it can't possibly happen for the simple reason that I can't get that rich!!

But it's nice daydreaming about it.

Obviously you can question one or two of the assumptions, but given the basic premise, you get the gist.

Expand

EVS Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Almonty Industries – Now it is getting critical!

MTM

MTM Crit Metals hits +1,870% returns YoY – but fundamental questions remain

MEM

Many are concerned about global falling birthrates. This diverse stock has solutions

ASX Market Close: IT surges as Miners dumped | June 18, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

First 44 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 8.3¢		Change -0.001(1.19%)		Mkt cap ! $120.2M

Open	High	Low	Value	Volume
8.4¢	8.4¢	8.3¢	$110.6K	1.327M

Buyers (Bids)

No.	Vol.	Price($)
3	1125246	8.3¢

Sellers (Offers)

Price($)	Vol.	No.
8.4¢	2758887	5

View Market Depth

No.	Vol.	Price($)
3	1125246	0.083
4	2366528	0.082
2	760300	0.081
2	850000	0.080
2	706300	0.079

Price($)	Vol.	No.
0.084	2758887	5
0.085	1803954	13
0.086	2406398	8
0.087	826175	6
0.088	3211375	5

Last trade - 16.10pm 18/06/2025 (20 minute delay)

EVS (ASX) Chart

Almonty Industries – Now it is getting critical!

MTM Crit Metals hits +1,870% returns YoY – but fundamental questions remain

Many are concerned about global falling birthrates. This diverse stock has solutions

ASX Market Close: IT surges as Miners dumped | June 18, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Top Stories

Almonty Industries – Now it is getting critical!

MTM Crit Metals hits +1,870% returns YoY – but fundamental questions remain

Many are concerned about global falling birthrates. This diverse stock has solutions

ASX Market Close: IT surges as Miners dumped | June 18, 2025

Listen: HotCopper Wire Podcast 013 - They changed the IPO rules (and that's a good thing)

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News