Group 1 - EHang Holdings Limited Unsponsored ADR is part of the Aerospace group, which ranks 1 in the Zacks Sector Rank among 16 groups [2] - The Zacks Rank system indicates that EHang has a current rank of 2 (Buy), suggesting a positive earnings outlook [3] - The Zacks Consensus Estimate for EHang's full-year earnings has increased by 27.3% in the past quarter, indicating stronger analyst sentiment [4] Group 2 - EHang has achieved a year-to-date return of 60.4%, significantly outperforming the average gain of 2.5% in the Aerospace group [4] - EHang belongs to the Aerospace - Defense Equipment industry, which ranks 29 in the Zacks Industry Rank, with an average gain of 3.3% this year [6] - Other stocks like Woodward have also shown strong performance, with a year-to-date return of 9.6% and a Zacks Rank of 2 (Buy) [5][6]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of US$26.92, indicating a potential upside of 24% from the current price of US$21.77 [1][9]. Core Insights - The company achieved its first annual Non-GAAP net profit in 2024, delivering 216 units of the EH216-S model and generating revenue of RMB 164.3 million in Q4 2024, reflecting a year-on-year growth of 190.2% [7][11]. - The management expects revenue to reach RMB 900 million in 2025, corresponding to the delivery of approximately 450 units, representing a year-on-year growth of 97% [8][14]. - The company is expanding its production capacity, with plans to complete the second phase of its Yunfu factory by 2025, increasing annual capacity to 1,000 units [8][9]. Summary by Sections Investment Rating - The investment rating remains "Buy" with an updated target price of US$26.92, reflecting a 43% increase from the previous target of US$18.84 [2][9]. Financial Performance - The company reported a total revenue of RMB 456 million for 2024, with a significant increase in Q4 revenue to RMB 164.3 million [10][12]. - The forecast for 2025 includes an estimated revenue of RMB 924 million, with projected EPS of RMB 2.14 [10][15]. Production and Capacity - The company plans to deliver 450, 700, and 850 units of eVOTL in 2025, 2026, and 2027, respectively, with corresponding revenues of RMB 9.24 billion, RMB 14.3 billion, and RMB 16.5 billion [14][15]. - The company has over 1,000 units in hand orders, indicating a strong demand outlook [8][9]. Valuation - The report employs a P/S valuation method, adjusting the valuation multiple to 14 times the 2025 P/S, resulting in the target price of US$26.92 [17][20].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of US$26.92, indicating a potential upside of 24% from the current price of US$21.77 [1][9]. Core Insights - The company achieved its first annual Non-GAAP net profit in 2024, delivering 216 units of the EH216-S model and generating revenue of RMB 164.3 million in Q4 2024, reflecting a year-on-year growth of 190.2% [7][11]. - The management expects revenue to reach RMB 900 million in 2025, driven by the delivery of approximately 450 units of the EH216-S, representing a year-on-year growth of 97% [8][14]. - The company is expanding its production capacity, with plans to complete the second phase of its Yunfu factory by 2025, increasing annual production capacity to 1,000 units [8][9]. Summary by Sections Investment Rating - The report reiterates a "Buy" rating and raises the target price to US$26.92 from US$18.84, reflecting a 43% increase [2]. Financial Performance - The company reported a total revenue of RMB 456 million for 2024, with a projected revenue of RMB 924 million for 2025 and RMB 1.427 billion for 2026 [10][14]. - The forecasted EPS for 2025 is RMB 2.14, down from the previous estimate of RMB 2.72, indicating a 21% decrease [2]. Market Comparison - The company's revenue forecast for 2025 is 3% higher than market expectations, while the EPS forecast is 528% higher than the market's [5]. Production and Capacity Expansion - The company plans to maintain a production strategy based on sales demand, with over 1,000 units in hand orders, ensuring full production capacity in the next 1-2 years [8][9]. Profitability Outlook - The report anticipates that the company will achieve a GAAP net profit in the second half of 2025 and a full-year profit in 2026, with a gross margin expected to remain around 60% [9][14].

Investment Rating - The report maintains a BUY rating for EHang Holdings with an unchanged target price of US$30, indicating a potential upside of 33.6% from the current price of US$22.45 [3][24]. Core Insights - EHang's net loss in 4Q24 narrowed by 35% year-over-year (YoY) to RMB47 million, supported by a significant increase in electric vertical take-off and landing (eVTOL) aircraft deliveries, which grew 2.4 times YoY [1][8]. - For 2025, EHang targets revenue of RMB900 million, suggesting a 97% YoY growth, and is positioned as the first manufacturer in China to obtain essential certifications for mass production of eVTOL aircraft, ahead of competitors by 1-2 years [1][8]. - The potential approval of operator certification for its subsidiaries is expected to be a key catalyst for share price movement [1]. Financial Performance Summary - In FY24, EHang's revenue surged 2.9 times YoY to RMB456 million, while the net loss narrowed by 24% YoY to RMB230 million [2][19]. - The company achieved positive operating cash flow for five consecutive quarters, with net cash and short-term investments totaling RMB1 billion at the end of 2024 [1][8]. - Revenue projections for FY25E and FY26E are RMB899 million and RMB1,341 million, respectively, with corresponding YoY growth rates of 97% and 49.2% [2][19]. Delivery and Expansion - EHang delivered 78 units of the EH216 series in 4Q24, contributing to a total of 216 units delivered in FY24, representing a 3.1 times YoY increase [1][8]. - The company is expanding its market presence both domestically and internationally, securing new orders in China and expanding flight operations to 16 cities in Japan, Thailand, and Mexico [1][8]. Share Performance and Market Data - EHang's market capitalization is approximately US$1.42 billion, with an average turnover of US$41.8 million over the past three months [3]. - The stock has shown significant performance over the past six months, with an increase of 85.4% [5].

Financial Data and Key Metrics Changes - In Q4 2024, EHang delivered 78 units of the EH216 series, generating revenues of RMB164 million, a 239.1% year-over-year increase [12] - For the full year 2024, total deliveries reached 216 units with revenues of RMB456 million, marking a 288.5% year-over-year increase [12] - The company achieved positive adjusted net income and positive operating cash flow for the first time in its history [12] - Q4 gross margin was 60.7%, slightly down from 64.7% in Q4 2023, while the full-year gross margin was 61.4%, down from 64.1% in 2023 [45] - Adjusted operating income for Q4 was RMB27.9 million, a significant improvement from an adjusted operating loss of RMB24.9 million in Q4 2023 [48] Business Line Data and Key Metrics Changes - The EH216-S autonomous eVTOL received significant orders, including a 30-unit order from Shandong province and another 30-unit order from Zhejiang province [27] - The company is focusing on enhancing production efficiency and scaling production capabilities to meet growing demand [28] Market Data and Key Metrics Changes - EHang has established over 20 eVTOL operational demonstration sites and e-ports across 16 cities in China [15] - The company is expanding its presence in international markets, conducting flights in countries like Thailand, Japan, Spain, and Mexico [39] Company Strategy and Development Direction - EHang aims to launch operational demonstration projects in key cities to allow public experience of eVTOL flights [16] - The company is committed to advancing AI technology integration within its operations and products [18] - EHang plans to develop a complete lifecycle value system for customers, including hardware, services, and operations [85] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for eVTOL products and operational services, expecting total revenue for 2025 to reach RMB900 million, a 97% increase year-over-year [42] - The company is focused on safety and regulatory compliance as it prepares for commercial operations [32] Other Important Information - EHang has partnered with various universities and government departments to advance digital technologies in the low-altitude aviation industry [20] - The company is developing next-generation high-energy solid-state lithium batteries and has achieved significant progress in testing [21] Q&A Session Summary Question: Production capacity expansion for Hefei facility - Management confirmed that the Yunfu Phase 2 will reach an annual capacity of 1,000 units by the end of 2025, with specialized focuses for different production lines [55][56] Question: Timeline for OC application and GAAP profitability - Management expects to receive OC approval soon and anticipates achieving GAAP profitability in 2026, with a CapEx guidance of approximately $14 million for 2025 [66] Question: Gross margin outlook and financing plans - Management targets a gross margin around 60% and plans to seek additional financing to support market expansion and new product development [72] Question: Air taxi operation timeline - Management indicated that air taxi services will be established in domestic tourism areas first, with infrastructure development being a key factor [77] Question: Update on overseas market and revenue diversification - Management reported strong domestic demand with intention orders exceeding 1,000 units and emphasized a dual strategy of operations and sales to diversify revenue streams [90][85]

Financial Performance - The company reported record-high quarterly revenues of RMB164.3 million (US$22.5 million), representing a 190.2% increase year-over-year from RMB56.6 million in Q4 2023 and a 28.2% increase from RMB128.1 million in Q3 2024 [11][28] - For the fiscal year 2024, total revenues reached RMB456.2 million (US$62.5 million), up 288.5% from RMB117.4 million in 2023, primarily driven by increased sales volume of EH216 series products [28] - The gross margin for Q4 2024 was 60.7%, slightly down from 64.7% in Q4 2023 and on par with 61.2% in Q3 2024 [16] - The company achieved its first year and third consecutive quarter of non-GAAP profitability, with adjusted net income of RMB36.4 million (US$5.0 million) in Q4 2024, a significant improvement from an adjusted net loss of RMB22.1 million in Q4 2023 [24][25] Operational Highlights - The company delivered a record-high of 216 units of EH216 series eVTOLs in 2024, a 315.4% increase from 52 units in 2023 [4] - The EH216 series eVTOL sales and deliveries in Q4 2024 reached 78 units, representing a 239.1% increase from 23 units in Q4 2023 [4] - The company expects fiscal year 2025 revenues to be around RMB900 million, reflecting a 97% year-over-year increase [40] Strategic Developments - EHang expanded its global presence, achieving the first-ever urban flight of a pilotless eVTOL in Europe and securing new orders from clients across multiple cities in China [5][10] - The company is collaborating with various partners to develop UAM infrastructure and low-altitude flight hubs, including a strategic partnership with China Communications Information & Technology Group [5] - EHang is also focusing on talent training by partnering with the Civil Aviation Flight University of China to address the demand for skilled professionals in the low-altitude economy sector [5] Management Insights - The CEO highlighted the achievements in 2024, emphasizing the acceleration of eVTOL adoption and the company's commitment to innovation and operational expansion [10] - The CFO noted the exceptional momentum in 2024, driven by unprecedented demand for the EH216-S and strategic execution in scaling production and preparing for commercial operations [10]

Core Viewpoint - EHang Holdings Limited, a leader in Urban Air Mobility technology, will release its unaudited financial results for Q4 and the fiscal year ending December 31, 2024, on March 12, 2025, before the U.S. market opens [1]. Group 1: Financial Results Announcement - The unaudited financial results will be released on March 12, 2025, before the U.S. market opens [1]. - An earnings conference call will be hosted by EHang's management team at 8:00 AM U.S. Eastern Time on the same day [2]. Group 2: Conference Call Details - Participants must complete an online registration process to join the conference call, receiving email instructions with dial-in information and a PIN number [2]. - A live and archived webcast of the conference call will be available on the Company's Investor Relations website [3]. Group 3: Company Overview - EHang is recognized as the world's leading Urban Air Mobility technology platform company, focusing on safe, autonomous, and eco-friendly air mobility solutions [4]. - The company provides unmanned aerial vehicle systems for various applications, including passenger transportation, logistics, smart city management, and aerial media solutions [4]. - EHang's flagship product, the EH216-S, has received the world's first type certificate, production certificate, and standard airworthiness certificate for pilotless eVTOL from the Civil Aviation Administration of China [4].

Core Viewpoint - EHang Holdings Limited has entered into a strategic cooperation framework agreement with JAC Motors and Guoxian Holdings to establish a joint venture in Hefei for the manufacturing of low-altitude aircraft, specifically intelligent and pilotless electric vertical takeoff and landing aircraft (eVTOL) [1][3][5] Group 1: Strategic Cooperation Details - The agreement focuses on R&D, manufacturing, and sales of eVTOL aircraft, aiming to enhance technological advancements and production capacity [3][4] - The partnership will integrate the new energy vehicle industrial chain in Hefei with aircraft manufacturing technology, promoting standardization and establishing unified industry standards [4][5] - The collaboration is expected to foster the development of a comprehensive industrial cluster and a multi-dimensional transportation ecosystem [4][5] Group 2: Contributions of Each Partner - JAC Motors will leverage its expertise in traditional automobile manufacturing to scale up and automate eVTOL production [5] - EHang will provide cutting-edge R&D and production technologies, along with experience in airworthiness certification and operations [5] - Guoxian Holdings will facilitate policy support and create a favorable development environment for the cooperation [5] Group 3: Government Support and Market Demand - Hefei municipal government has previously signed a strategic cooperation agreement with EHang, leading to the establishment of two UAM eVTOL operation centers [6] - The collaboration aims to meet the growing market demand for pilotless passenger-carrying aircraft and support the large-scale deployment of eVTOLs [6][7] - Hefei aims to be a key city in the national development of the low-altitude economy, providing support for technology development and standard formulation [7] Group 4: Future Outlook - The partnership is expected to drive high-quality growth in emerging industries and achieve mass production of low-altitude eVTOLs in Hefei [8] - EHang is committed to advancing a full-scale low-altitude air mobility ecosystem and strengthening the industrial chain for pilotless eVTOL products [8]

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Company Analysis - EHang Holdings Limited (NASDAQ: EH) has shown a strong adjusted operating revenue rebound of 1208.22% quarter-over-quarter (QoQ) [1] - The company's performance is driven by its strong financial recovery and growth potential [1] Analyst Background - The analyst specializes in technology, innovation, and sustainability investment, with a focus on emerging technologies and sustainable investing [1] - The analyst employs a "First Principles" approach to break down complex problems into basic financial and technological elements to uncover investment opportunities [1] - The analyst has a strong background in investment, private equity, and venture capital, with a proven track record of delivering strong returns [1]