GUANGZHOU, China, Nov. 08, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading Urban Air Mobility (“UAM”) technology platform company, today announced that its EH216-S pilotless electric vertical takeoff and landing (“eVTOL”) aircraft completed debut passenger flights in Thailand at the renowned Queen Sirikit National Convention Center in central Bangkok. The flights mark a new milestone for expanding EHang’s eVTOL flight footprint to the 18th country ...

I am initiating coverage on EHang Holdings (NASDAQ: EH ) with a "Buy" rating and an initial investment horizon of 24 months. I believe that EHang is attractively valued considering the company's growth potential and industry tailwinds. This initiating coverage discusses Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opi ...

GUANGZHOU, China, Oct. 30, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited ("EHang" or the "Company") (Nasdaq: EH), the world's leading Urban Air Mobility ("UAM") technology platform company, today announced it has entered into a strategic partnership with the Civil Aviation Flight University of China (the "CAFUC"). Building upon the CAFUC's extensive expertise in civil aviation education, research, and talent development, the two parties will collaborate on cultivating skilled personnel, including operator ...

Investment Rating - The report assigns a "Buy" rating to the company with a target price of US$19.71, indicating a potential upside of 66% from the current price of US$11.91 [1][4]. Core Insights - The company is positioned as a key beneficiary in the rapidly developing low-altitude economy, particularly with the commercialization of eVTOL (Electric Vertical Takeoff and Landing) aircraft. The EH216-S model has received all necessary certifications, marking a significant milestone for commercial operations [3][11]. - The report forecasts strong sales growth for the EH216-S, with projected deliveries of 190, 400, and 700 units from 2024 to 2026, respectively, leading to a compound annual growth rate (CAGR) of 138% [2][13]. - Financial projections indicate substantial revenue growth, with total revenues expected to reach RMB 4.38 billion, RMB 9.04 billion, and RMB 15.67 billion for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 272.6%, 106.5%, and 73.4% [6][13]. Summary by Sections Investment Overview - The report highlights the acceleration of eVTOL commercialization as a turning point for the low-altitude economy, with the company being a leading player in this sector. The EH216-S has become the first eVTOL to receive the necessary certifications for commercial operation [11][14]. Product Strength and Market Demand - The EH216-S is noted for its competitive advantages, including a compact design, cost-effective operation due to its unmanned nature, and strong market demand, with over 1,100 orders already secured [12][34]. - The report emphasizes the expected demand for eVTOLs in various applications, particularly in tourism and urban air mobility, with a long-term forecast suggesting a domestic demand exceeding 100,000 units [18][21]. Financial Analysis - The financial outlook includes a narrowing of net losses, with projections of RMB 2.03 billion and RMB 1.26 billion for 2024 and 2025, respectively, and a return to profitability with a net profit of RMB 1.42 billion by 2026 [6][13]. - The valuation is based on a price-to-sales (P/S) ratio of 10 times the 2025 forecast, leading to the target price of US$19.71 [4][13]. Government Support and Market Environment - The report notes significant government support for the low-altitude economy, which is expected to create a favorable environment for the company's growth and the broader eVTOL market [23][24]. - The EH216-S's early certification provides a competitive edge, as it is currently the only eVTOL capable of commercial operation, while competitors are still in the certification process [25][27].

GUANGZHOU, China, Sept. 24, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading Urban Air Mobility (“UAM”) technology platform company, today announced a major milestone with the successful completion of the first flight of its EH216-S pilotless eVTOL in Brazil. EH216-S completed the first flight in Brazil EHang's first trial flight in Brazil took place in Quadra, located in the São Paulo region, in partnership with its local operator, Gohobby Future ...

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company reported a significant revenue increase of 920% year-on-year and 65% quarter-on-quarter for Q2 2024, reaching 102 million yuan, despite a net loss of 71.6 million yuan [1] - The company achieved a gross margin of 62.4% in Q2 2024, an increase of 2.2 percentage points year-on-year and 0.5 percentage points quarter-on-quarter [1] - The company expects Q3 2024 revenue to be approximately 123 million yuan, representing a year-on-year growth of 329.8% and a quarter-on-quarter growth of 20.6% [1] Summary by Sections Investment Events - The company delivered 49 units of the EH216 in Q2 2024, marking an 880% increase year-on-year and an 88% increase quarter-on-quarter [2] - The company received a production license from the Civil Aviation Administration of China (CAAC) in April 2024, leading to increased orders and delivery demands [2] - The company is expected to obtain the first operational certificate (OC) by the end of 2024, which would be a global first for its unmanned aerial vehicle operations [3] Strategic Partnerships - The company signed a strategic cooperation memorandum with China Southern Airlines to develop low-altitude tourism services [3] - The company successfully completed its first manned flight of the EH216-S in Abu Dhabi and conducted its first unmanned aerial taxi flight in Mecca, Saudi Arabia [3] Financial Forecast and Valuation - The report maintains its earnings forecast, projecting revenues of 447 million yuan, 904 million yuan, and 1.35 billion yuan for 2024, 2025, and 2026, respectively [3] - The price-to-sales (P/S) ratios are projected to be 12, 6, and 4 for the years 2024, 2025, and 2026 [3]

Core Viewpoint - EHang Holdings Limited has received an Experimental Flight Authorization Certificate for its EH216-S pilotless eVTOL aircraft from Brazil's National Civil Aviation Agency, enabling test flights in Brazil to showcase its advanced flight technology and management systems [1][6]. Group 1: Certification and Regulatory Developments - EHang's EH216-S has obtained the first Type Certificate, Production Certificate, and Standard Certificate of Airworthiness in the global eVTOL industry from the Civil Aviation Administration of China, confirming compliance with relevant regulations for commercial operations [2]. - Brazil and China have signed cooperation agreements to enhance civil aviation partnerships, focusing on safety, efficiency, and sustainability in airworthiness certification processes [3]. - Discussions are ongoing between ANAC and CAAC regarding the regulatory model for the EH216-S in Brazil, aiming to understand applicable frameworks for this new technology [4]. Group 2: Collaboration and Future Plans - EHang is collaborating with various civil aviation authorities globally to promote airworthiness certification for the EH216-S, sharing technology and expertise for safe pilotless eVTOL operations [2]. - EHang plans to conduct comprehensive test flights in Brazil in partnership with local operator Gohobby, working closely with ANAC and Brazil's Airspace Control Department to advance UAM research and development [1][5]. - The company aims to develop and deploy safe UAM solutions with the EH216-S, ensuring accessibility for all [6].

Core Viewpoint - EHang Holdings Limited has strongly refuted recent unfounded rumors regarding an investigation involving its CEO, emphasizing that these allegations are false and have negatively impacted the company's stock price [1]. Group 1: Company Response - EHang categorically denies any involvement in activities that could harm its reputation or standing with regulatory bodies, asserting that the management team has no personal connections to the alleged investigation [1]. - The company maintains the highest standards of transparency and compliance in its operations to meet legal and ethical obligations in both China and the U.S. [2]. - EHang urges investors to rely on official communications for accurate information and reserves the right to take legal action against those spreading false information [2]. Group 2: Company Mission and Achievements - EHang is a leading urban air mobility technology platform focused on developing and commercializing autonomous aerial vehicle technology [2]. - The company provides unmanned aerial vehicle systems and solutions across various industries, including passenger transportation, logistics, smart city management, and aerial media [3]. - EHang's EH216-S has received the world's first type certificate, production certificate, and standard airworthiness certificate for passenger-carrying pilotless eVTOL aircraft from the Civil Aviation Administration of China [3].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [3][8]. Core Insights - The company reported Q2 revenue of 100 million yuan, a year-on-year increase of 920%, exceeding the previous guidance of 90 million yuan. The adjusted net profit turned positive at 1.2 million yuan, with a gross margin of 62.4%, up by 2.2 percentage points year-on-year. Operating cash flow has been positive for three consecutive quarters [1]. - The company is expected to obtain the Operational Certificate (OC) within the year, with continuous order expansion. In April, the company received the production license for the EH216-S model, allowing for mass production at its facility in Guangdong. Orders from various clients, including government and tourism operators, have significantly increased [1][2]. - For Q3 2024, the company anticipates revenue of 123 million yuan, representing a year-on-year growth of 330% and a quarter-on-quarter increase of 21% [1]. Summary by Sections Q2 Performance Overview - Revenue reached 100 million yuan, up 920% year-on-year, surpassing guidance of 90 million yuan. Adjusted net profit was 1.2 million yuan, marking a return to profitability. Gross margin stood at 62.4%, an increase of 2.2 percentage points year-on-year. Positive operating cash flow for three consecutive quarters [1]. Domestic Business - The company is on track to obtain the OC and is expanding orders. In April, it received the EH216-S production license, enabling mass production. Significant orders were secured from various clients, including a 50-unit order from Shanxi tourism and a 30-unit order from the government of Wencheng County, Zhejiang [1][2]. International Business - The company is expanding into the Middle East market, collaborating with Multi Level Group and the Abu Dhabi Investment Office. Successful test flights of the EH216-S were conducted in Abu Dhabi and Saudi Arabia [1]. Q3 2024 Guidance - The company expects Q3 revenue of 123 million yuan, a 330% year-on-year increase and a 21% quarter-on-quarter increase [1].

Core Insights - EHang reported a nine-fold increase in unit sales of its EH-216 aircraft in Q2 2024, with a 920% increase in revenue and continued positive cash flow, indicating strong growth potential [2][18] - The eVTOL market is expected to gain momentum by 2025, with competitors like Joby and Archer anticipating FAA certification, which could lead to increased interest and investment in the sector [3][18] - EHang is currently the only eVTOL company to achieve type certification, with significant domestic orders and a growing manufacturing capacity, positioning it favorably in the market [5][7][18] Company Overview - EHang is a Chinese company focused on manufacturing autonomous eVTOL aircraft, primarily generating over 90% of its revenue from domestic operations [5] - The EH-216 aircraft is unique in its price and use case, selling for under $500,000, significantly lower than competitors [6] - EHang has faced skepticism from short sellers regarding its order book and manufacturing capabilities, but recent developments have validated its operational progress [5][6] Current Market Position - EHang received its mass production license in April 2024 and has expanded its manufacturing capabilities, with plans to increase production capacity to 1,800 aircraft annually [7][8] - The company has secured over 1,100 orders from Chinese customers in H1 2024, with expectations for continued order growth [7][9] - EHang's partnerships with local governments and airlines, along with infrastructure investments in vertiports, support its market expansion [9][10] Future Growth Potential - EHang is targeting aerial tourism as its primary use case, with plans for additional aircraft models like the VT-30, which is designed for intercity transportation [10][19] - The company anticipates triple-digit revenue growth over the next three to five years, driven by a large domestic market and minimal competition [9][19] - EHang's financial health is strong, with a solid cash position and positive cash flow projected for 2024 and 2025, reducing reliance on external financing [11][19] Valuation Insights - A mathematical model suggests a fair value for EHang shares above $30, indicating a potential upside of over 100% based on continued revenue growth and operational efficiency [16][19] - The current share price of $14.77 reflects a significant increase following the Q2 earnings report, highlighting investor interest [16][19] - EHang's valuation is influenced by currency exchange risks and geopolitical factors, given its operations are primarily in China [16][19]