Core Viewpoint - The issuance of the Operational Certificate (OC) for the first manned civil unmanned aerial vehicles (UAVs) in China marks the beginning of the low-altitude commercialization process, providing a significant opportunity for companies in this sector to gain a first-mover advantage [2][3]. Group 1: Operational Developments - Guangdong Yihang General Aviation Co., Ltd. and Hefei Heying Aviation Co., Ltd. received the OC from the Civil Aviation Administration of China, making them the first in the country to operate manned civil UAVs [2]. - The EH216-S, operated by these companies, is the world's first and China's only eVTOL aircraft with all three necessary certifications: Type Certificate (TC), Standard Airworthiness Certificate (AC), and Production Certificate (PC) [3]. Group 2: Financial Projections - Hefei Heying plans to launch "air taxi" sightseeing services, with initial ticket prices estimated between 300-500 RMB, potentially dropping to around 100 RMB with government subsidies. The projected annual revenue per aircraft could reach 3.2 million RMB, with a payback period of approximately 2.7 years [4]. Group 3: Strategic Partnerships and Models - Hefei Heying is a joint venture between Hefei State-owned Assets and Yihang Intelligent, which positions them favorably for future low-altitude infrastructure tenders, route approvals, and funding support [5]. - The collaboration with local government to establish the Luogang Air Traffic Hub explores a "government provides land, enterprise operates, revenue sharing" model, addressing the high investment challenges in low-altitude infrastructure [5]. Group 4: Future Developments - There is an expectation for rapid progress in the certification of manned sightseeing and cargo-level eVTOLs this year, with a focus on the OC certification developments in other regions and the progress of other companies like Peak Flying and Wolong Sky [6]. - Yihang plans to expand its production capacity significantly, aiming for an annual output of 1,000 aircraft by the end of 2025 through partnerships with companies like Inbol and solid-state battery firms [7]. Group 5: Technological Advancements - The EH216-S has shown a significant improvement in flight endurance, with a 90% increase, now exceeding 48 minutes, thanks to the integration of solid-state lithium batteries [8].

| 低空经济系列 车中旭霞 | | --- | | 行业深度 | | 《 eVTOL行业专题：低空经济的先导产业，飞行汽车商业化渐近》——20240516 | | 行业点评 | | 《 低空经济点评：亿航智能运营合格证落地，低空经济从试点迈向商业化运营阶段 》——202 50331 | | 公司深度 | | 《亿航智能（EH.O）-低空经济领先企业，集齐适航三证，商业化落地有望加速》 ——2024-08-11 | | 《 万丰奥威（002085.SZ）-汽车轻量化为基，通航飞机打开低空经济成长空间》——20240928 | | 公司点评 | | 《亿航智能（EH.O）- 单四季度收入同比增长190%，商业化落地运营可期》 ——20250324 | | 《亿航智能（EH.O）-单三季度收入同比增长348%，在手订单充裕》 ——20241123 | | 《 万丰奥威（002085.SZ）-三季报点评：单三季度营收环比增长4%，通航飞机打开低空经济成长空间》——20241112 | 事项 近期，广东亿航通用航空有限公司和合肥合翼航空有限公司收到了由中国民航局颁发的民用无人驾驶航空器运营合格 证（OC）。其中，亿航通 ...

Investment Rating - The report maintains a "BUY" rating for EHang Holdings with an unchanged target price of US$30, indicating a potential upside of 44.6% from the current price of US$20.75 [3][21]. Core Insights - EHang has obtained the first-ever Operator Certificate (OC) for commercial operations of its pilotless passenger-carrying eVTOL aircrafts, which positions the company to conduct aerial tourism and air taxi services in Guangzhou and Hefei [1]. - The earnings forecast for 2025E and 2026E remains unchanged, reflecting confidence in the company's growth trajectory despite current losses [1]. Financial Summary - Revenue is projected to grow significantly from RMB 117 million in FY23A to RMB 1,646 million in FY27E, with year-on-year growth rates of 165.0% in FY23A and 288.5% in FY24A [2]. - Adjusted net profit is expected to improve from a loss of RMB 301.7 million in FY23A to a profit of RMB 246.4 million in FY27E [2]. - The company’s P/S ratio is forecasted to decrease from 81.2x in FY23A to 5.8x in FY27E, indicating a more favorable valuation as revenue increases [2]. Share Performance - The market capitalization of EHang is approximately US$1.31 billion, with an average turnover of US$46 million over the past three months [3]. - The stock has shown a 1-month decline of 9.6% but a 6-month increase of 47.5%, indicating volatility in the short term but positive performance over a longer period [5]. Shareholding Structure - The largest shareholder is Huazhi Hu, holding 30.7% of the shares, which may influence company decisions and strategic direction [4]. Customer Orders - EHang has secured significant orders, with a total of 1,210 aircraft orders (195 delivered and 1,020 intent orders) from various customers, indicating strong demand for its eVTOL products [9].

Core Viewpoint - The article discusses the recent achievement of EHang Intelligent in obtaining the world's first operational qualification certificate (OC) for unmanned aerial vehicles, marking a significant milestone in the low-altitude economy and urban air mobility sector [1][4]. Group 1: Company Achievements - EHang Intelligent has become the first company globally to hold all four essential aviation certificates, including the OC, which validates its capability for safe and compliant commercial flight operations [1]. - EHang's EH216-S unmanned aerial vehicle has completed over 60,000 safe flights, showcasing its operational reliability [1]. Group 2: Industry Developments - The low-altitude economy is expected to initially focus on tourism, with EHang and other companies like Beijing Huabin Tianxing and Zhongtong Hangxiang actively engaging in low-altitude tourism operations [4][9]. - The Chinese government has recognized "low-altitude consumption" as a priority, with plans to enhance the regulatory framework and promote low-altitude tourism and drone usage [9]. Group 3: Collaborations and Future Plans - EHang has established partnerships with various local governments and companies to expand its services in cities like Hefei, Guangzhou, and Shenzhen, focusing on urban air commuting and sightseeing [4]. - Other companies, such as XPeng's XPeng Huitian and Zero Gravity Aircraft Industry, are also entering the low-altitude market, emphasizing technological innovation and tourism integration [5][7].

EHang has already achieved multiple historical certification breakthroughs, including the world's first type certificate ("TC"), standard airworthiness certificate ("AC"), and production certificate ("PC") for pilotless human-carrying eVTOL aircraft. Now, with the newly granted OC, EHang becomes the world's first eVTOL company to achieve the full suite of regulatory certifications. This achievement marks a significant step toward the commercialization and mass adoption of low-altitude human-carrying flight ...

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].