Investment Rating - The report maintains a "Buy" rating for EHang Holdings (EH O) with a target price of $22, corresponding to a 35x 2026e P/E [1] Core Views - EHang achieved a significant turnaround in Q2 2024, with revenue of RMB 102 million, surpassing the guidance of RMB 90 million, representing a 920% YoY and 65% QoQ growth [1] - The company delivered 49 EH216-S units in Q2, a 9x YoY increase and a record high, with gross margin improving to 62 4% [1] - EHang expects Q3 2024 revenue to reach RMB 123 million, a 330% YoY increase, with triple-digit growth expected in the coming quarters [1] - The company has over 1,000 pre-orders for EH216-S, with domestic orders exceeding 1,100 units since Q4 2023 [1] - EHang's OC application has been accepted by the CAAC, with the first OC expected to be approved within 2024, paving the way for commercial applications [1] - The company plans to increase its annual production capacity to over 1,000 units by 2025, supported by factory expansions and automation improvements [1] Financial Performance - EHang's Q2 2024 non-GAAP net income was RMB 1 25 million, achieving profitability two quarters ahead of expectations [1] - The company's cash and cash equivalents stood at RMB 990 million as of Q2 2024, with no further ATM issuances planned for 2024 [1] - EHang's revenue is projected to grow from RMB 428 million in 2024 to RMB 1 31 billion in 2026, with non-GAAP net income turning positive in 2025 [1][12] Operational Highlights - EHang has established operational bases in key locations such as Shenzhen, Hefei, Guangzhou, and Zhuhai, with plans to expand low-altitude tourism applications [1] - The company has signed strategic partnerships, including a memorandum with China Southern Airlines General Aviation, to establish demonstration sites for EH216-S operations [1] - EHang is collaborating with GAC Group and other partners to expand production capacity and enhance key component development, particularly in battery technology [1] Market Position and Growth Potential - EHang is positioned as a leader in the urban air mobility (UAM) sector, with significant growth potential driven by increasing demand for eVTOL solutions [1] - The company's strong order backlog and expanding production capacity support its growth trajectory, with delivery volumes expected to increase significantly in the coming years [1][12]
亿航智能：提前实现扭亏，OC进展顺利