EHang(US:EH)2025-12-01 00:49EHang (EH) Conference Call Summary Company Overview - Company: EHang Holdings Limited (EH) - Industry: Electric Vertical Takeoff and Landing (eVTOL) Aircraft Key Financial Highlights - 3Q25 Revenue: Rmb 92 million, down 28% YoY and 37% QoQ, missing estimates by 39% and 38% respectively [1][5][11] - Net Income: Net loss of Rmb 82 million, in line with estimates [5][11] - Gross Margin: Decreased to 60.8% from 62.6% in 2Q25 [5][11] - Operating Loss: Rmb 95 million in 3Q25 [5][11] Product Developments - VT-35 Launch: Initial delivery of VT-35 started in 3Q25, priced at Rmb 6.5 million per unit, designed for long-range travel (~200 km) [1][4] - eVTOL Orders: Strong order backlog for eVTOLs, supporting growth recovery in 4Q25 [1][5] Market Initiatives - International Expansion: Announced participation in Thailand's AAM Sandbox initiative to accelerate eVTOL commercialization in overseas markets [1] Earnings Revision - 2025-2027 Revenue Estimates: Revised down due to slower-than-expected product delivery; 2025E revenue now at Rmb 483 million, down 6% from previous estimates [12][18] - Net Loss Estimates: Adjusted 2025E net loss to Rmb 280 million [12][18] Valuation and Price Target - Target Price: Maintained at US$22.80, reflecting a DCF-based methodology [18][20] - Market Cap: Approximately $801.1 million [20] Risks and Challenges - Regulatory Delays: Potential slower-than-expected progress on airworthiness regulations for AAVs in China [19] - Market Adoption: Weaker-than-expected customer willingness to adopt passenger-grade AAVs [19] - Competition: Increased competition in the AAV market could impact earnings estimates [19] Conclusion - EHang remains a Buy rated stock with a focus on long-term growth potential despite recent revenue misses and operational challenges. The company is positioned to capitalize on strong order demand and international market initiatives, while navigating regulatory and competitive risks.