Core Insights - EHang has received the first batch of Air Operator Certificates for civil human-carrying pilotless aerial vehicles from the Civil Aviation Administration of China, marking a significant milestone in the low-altitude economy and urban air mobility in China [1][2][3] Company Achievements - EHang has achieved multiple historical certification breakthroughs, including the world's first type certificate, standard airworthiness certificate, and production certificate for pilotless human-carrying eVTOL aircraft, making it the first eVTOL company to obtain the full suite of regulatory certifications [3][4] Market Expansion - The issuance of the Air Operator Certificates allows for the commercialization of low-altitude human-carrying flight services, enabling citizens to purchase flight tickets for low-altitude tourism and urban sightseeing in Guangzhou and Hefei, with plans for future expansion into urban commuting [2][4] Future Plans - EHang aims to collaborate with more partners to establish additional low-altitude transportation operation centers across China, supporting local operators in applying for Air Operator Certificates and expanding the range of commercial human-carrying flight services [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $29, corresponding to a 15x 2025 estimated P/S ratio [6][4]. Core Views - The company exceeded revenue expectations for 2024, with total revenue reaching 456 million RMB, a year-on-year increase of 288%. The gross margin was reported at 61.4%, indicating strong product qualification barriers [1][4]. - The company is expected to achieve a total revenue of 900 million RMB in 2025, representing a growth of approximately 97% year-on-year, with a target gross margin of around 60% [1][4]. - The company is actively expanding its production capacity across multiple locations, including Guangdong, Hefei, and Weihai, to meet anticipated market demand [3][4]. Financial Summary - In 2024, the company delivered 216 units of the EH216-S model, contributing to a total revenue of 456 million RMB. The non-GAAP net profit for the year was 43 million RMB, surpassing previous expectations [1][4]. - The financial projections for 2025-2027 indicate revenues of 873 million RMB, 1.34 billion RMB, and 1.73 billion RMB, respectively, with non-GAAP net profits of 92 million RMB, 151 million RMB, and 165 million RMB [5][12]. - The company’s gross profit margin is expected to stabilize around 60% in the coming years, reflecting its strong market position and operational efficiency [4][12].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $29, corresponding to a 15x 2025 estimated P/S ratio [6][4]. Core Insights - The company exceeded revenue expectations for 2024, reporting total revenue of 456 million RMB, a year-on-year increase of 288%, with a gross margin of 61.4% [1][4]. - The company is focusing on expanding its production capacity and exploring long-range aircraft and core component technology development [3][4]. - The anticipated approval of the Operating Certificate (OC) is seen as a critical event that could significantly impact the company's fundamentals and operational capabilities [2][4]. Financial Performance - In 2024, the company delivered 216 units of the EH216-S model, contributing to a total revenue of 456 million RMB, with a projected revenue of 873 million RMB for 2025, representing a 91.5% year-on-year growth [5][12]. - The non-GAAP net profit for 2024 was 43 million RMB, with expectations of 92 million RMB for 2025 [5][12]. - The company plans to increase its capital expenditures from $20 million to approximately $40 million in 2025, primarily for capacity expansion [1][4]. Production Capacity and Expansion - The company is expanding its production facilities in multiple locations, including Yunfu, Hefei, and Weihai, to enhance manufacturing efficiency and meet growing market demand [3][4]. - The goal is to achieve a total production capacity of 1,000 units by 2025 [3]. Research and Development - The company is actively developing long-range products and collaborating with partners to enhance its product offerings, including the VT-35 aircraft and solid-state lithium batteries [4][12]. - The EH216-S model's flight endurance has improved by 90%, reaching over 48 minutes, showcasing advancements in technology [4].

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].

Core Viewpoint - In 2024, Yihang Intelligent achieved total revenue of 456 million yuan, representing a year-on-year growth of 288.5%, with a gross margin of 61.4%, slightly down from 64.1% in 2023. The adjusted net profit reached 43.1 million yuan, marking the first annual adjusted profit for the company. Additionally, the company recorded positive operating cash flow for the first time, with a net inflow of approximately 160 million yuan in operating cash flow [2][3]. Revenue and Profitability - In Q4 2024, total revenue was 164 million yuan, showing a year-on-year increase of 190.2% and a quarter-on-quarter growth of 28.2%. The adjusted net profit for the quarter was 36.4 million yuan, achieving adjusted quarterly profitability for three consecutive quarters, with a gross margin of 60.7% [3]. - The company projects total revenue of approximately 900 million yuan for 2025, indicating a year-on-year growth of about 97% [3]. Delivery and Certification - In 2024, Yihang Intelligent delivered a total of 216 units of the EH216 series unmanned aerial vehicles, a significant increase of 315.4% compared to 52 units in 2023, setting a new record. In Q4 alone, 78 units were delivered, marking a year-on-year growth of 239.1% [3]. - The EH216-S, the flagship product, has received the eVTOL aircraft type certificate, production license, and standard airworthiness certificate from the Civil Aviation Administration of China. The CAAC has completed document reviews and on-site inspections for two companies, with final approval pending [3]. Strategic Partnerships and Infrastructure - In December 2024, Yihang Intelligent entered into a strategic partnership with China Transportation Information Technology Group to advance nationwide digital infrastructure for air traffic, focusing on low-altitude flight hubs and initiating urban air traffic operation centers in Hefei, Shanghai, and Shenzhen [3]. - The company plans to expand its 24,000 square meter production line in Yunfu, aiming for an annual production capacity of 1,000 units by the end of 2025, in collaboration with Inboer to upgrade and expand the production line [4]. - Yihang Intelligent is collaborating with solid-state battery company Xinjie Energy to complete flight tests of eVTOLs equipped with solid-state lithium batteries, significantly enhancing the flight endurance of the EH216-S by 90%, exceeding 48 minutes [4]. Market Application and Future Outlook - Currently, Yihang's revenue and orders are limited to scenic sightseeing applications. The EH216-S's certification is expected to promote the application of eVTOLs in this sector. However, urban and intercity commuting applications are still dependent on the certification progress of other aircraft models within the industry [4]. - The company is closely monitoring the certification progress of its operational capability (OC) and the airworthiness certification (TC) advancements of other companies in the industry [4].

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 Data and Key Metrics Changes - In Q4 2024, the company delivered 78 units of the EH216 series, generating revenues of RMB164 million, a year-over-year increase of 239.1% [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][49] - 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] Business Line Data and Key Metrics Changes - The EH216-S autonomous messenger 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 - The low-altitude economy was highlighted as a strategic emerging industry in China's 2025 government work report, emphasizing the need for large-scale demonstration projects [13][14] - EHang has established over 20 operational demonstration sites and e-ports across 16 cities in China [15] Company Strategy and Development Direction - The company aims to launch operational demonstration projects in key cities in 2025, focusing on public experience with eVTOL flights [16] - EHang plans to deepen its AI Plus strategy, integrating AI across the eVTOL lifecycle to enhance operational efficiency [19] - The company is collaborating with universities and government departments to build a smart low-altitude ecosystem [20] Management's 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 anticipates achieving GAAP profitability in 2026, with quarterly profitability expected in the second half of 2024 [66] Other Important Information - EHang has completed flight demonstrations in multiple countries, expanding its global footprint to 19 countries [82] - The company is actively exploring innovative approaches to expedite international operations of its eVTOLs [84] Q&A Session Summary Question: Production capacity expansion for Hefei facility - Management confirmed that the Yunfu Phase 2 expansion will reach a total annual capacity of 1,000 units by the end of 2025 [55] Question: Timeline for OC application and GAAP profitability - Management stated that the CAAC has completed inspections for two applicants and is awaiting final approval, with GAAP profitability expected in 2026 [62][66] Question: Gross margin outlook and financing plans - Management targets a gross margin around 60% and plans to seek additional financing to support growth initiatives [70][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 new orders and collaboration with JAC - Management reported strong domestic demand with intention orders exceeding 1,000 units and discussed the JV with JAC for eVTOL production [89][91] Question: Trends in R&D expenses for 2025 - Management expects sales and R&D expenses to grow, but revenue growth will outpace expense growth, leading to a declining ratio of SG&A to revenue [96] Question: Battery technology and VT-35 updates - Management is pursuing advancements in fast-charging and solid-state batteries, with the VT-35 prototype in final assembly and testing [100][102]