Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [1]. Core Insights - The company reported a significant revenue increase of 348% year-on-year for Q3 2024, reaching 128 million yuan, exceeding previous guidance. The net loss narrowed by 28.3% to 48.1 million yuan, with adjusted net profit at 15.7 million yuan, marking a sequential growth of 1,262% [1]. - The company has achieved positive operating cash flow for four consecutive quarters and secured strategic investments totaling over 22 million USD in November, enhancing its financial position [1]. - The flagship EH216-S series saw a delivery of 63 units, achieving record quarterly deliveries, with ongoing progress in eVTOL sales and operations across multiple cities in China [1]. - The company is expanding its international business and advancing airworthiness certification in countries like Brazil, Thailand, Japan, and the UAE [1]. - The company aims to achieve solid-state battery certification and mass production by the end of 2025, significantly enhancing the flight duration of its eVTOL products [1]. - Revenue guidance for Q4 2024 is projected at 135 million yuan, a year-on-year increase of 138.5%, with an annual revenue forecast of 427 million yuan, representing a growth of 263.5% [1]. - The company expects continued strong performance driven by increased demand from domestic and international customers, including government and tourism operators [1]. Summary by Sections Financial Performance - Q3 2024 revenue reached 128 million yuan, up 348% year-on-year, with a net loss of 48.1 million yuan, a reduction of 28.3% [1]. - Adjusted net profit for the quarter was 15.7 million yuan, reflecting a sequential increase of 1,262% [1]. - The company has achieved positive operating cash flow for four consecutive quarters [1]. Product Delivery and Operations - The EH216-S series delivered 63 units in Q3 2024, marking a significant increase in deliveries [1]. - The company is actively developing UAM demonstration projects in various cities, including Hefei, Guangzhou, and Shenzhen [1]. International Expansion - The company is expanding its international operations and has received flight permits in Brazil and Thailand, with ongoing certification efforts [1]. Technological Advancements - The company has made breakthroughs in solid-state battery technology, aiming for certification and mass production by the end of 2025 [1]. Future Guidance - Projected revenue for Q4 2024 is 135 million yuan, with an annual forecast of 427 million yuan for 2024 [1]. - The company anticipates continued growth driven by strong order backlogs and increasing production capacity [1].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of $21.66 per share, compared to the current price of $14.06 [4]. Core Insights - The company is the world's first eVTOL enterprise to obtain all three necessary certifications (TC, AC, PC), leading the commercialization process in the industry. The EH216 series and VT series form the core product matrix, providing solutions for various applications such as urban air mobility and aerial media [2][39]. - The low-altitude economy is set to take off, with eVTOL expected to become a primary aircraft in this sector. The domestic eVTOL market is projected to reach a scale of 379.5 billion yuan by 2030 [2]. - The company holds significant first-mover advantages due to its certifications and superior product resources. It has a substantial backlog of domestic and international orders, supported by strong initial production capacity [2]. - Revenue forecasts for 2024-2026 are 434 million, 815 million, and 1.217 billion yuan, respectively, with net profits expected to narrow from losses to a profit of 80 million yuan by 2026 [2]. Summary by Sections Company Overview - The company has established itself as a leader in the urban air mobility sector, having been founded in 2014 and achieving significant milestones, including the launch of the world's first passenger-grade autonomous flying vehicle in 2016 and its listing on NASDAQ in 2019 [39][43]. Low Altitude Economy - The low-altitude economy is gaining traction, with government support and clear airspace divisions facilitating the development of various applications, including logistics, tourism, and emergency services [104][105]. Financial Performance - The company experienced a revenue increase of 165% in 2023, returning to a growth trajectory after a downturn during the pandemic. The net loss has been narrowing, indicating improving financial health [82][86]. Product and Market Position - The company has a diverse product lineup covering various scenarios, including passenger transport, logistics, and emergency response. The EH216 series and VT-30 are pivotal in capturing market share in urban air mobility [65][86].

Investment Rating - The report maintains a "Buy" rating for EHang with a target price of $17, corresponding to 30x 2026e P/E [4] Core Views - EHang's Q3 revenue of RMB 128 million met expectations, while profitability exceeded expectations with a non-GAAP net profit of RMB 15.74 million [2] - The company delivered a record 63 EH216-S units in Q3, up 14 units QoQ, including 40 to Xishan Cultural Tourism, 5 to Shenzhen Boling, and 3 to Zhejiang Wencheng [2] - Q3 gross margin was 61.2%, down 1.2pct QoQ, while operating loss ratio narrowed to 43% due to economies of scale [2] - EHang expects Q4 revenue of RMB 135 million, representing 138.5% YoY growth, and maintains 2024-2025 capex guidance of $15-20 million [2] Product Development - EHang completed its first eVTOL solid-state battery flight test in November, achieving 48 minutes 10 seconds of flight time, a significant improvement from the previous 25 minutes [2] - The company aims to achieve solid-state battery certification and mass production for EH216-S by the end of 2025 through its partnership with Xinjie Energy [2] - EHang entered a long-term strategic cooperation with Inpower in November to jointly develop high-performance motors and motor controllers for its eVTOL products [2] Market Expansion - EHang is expected to obtain its first OC (Operating Certificate) by the end of 2024, enabling commercial operations in Hefei [2] - The company is assisting customers and partners in Guangzhou, Shenzhen, Wuxi, Wencheng, and Zhuhai with OC applications [2] - EHang has made progress in international markets, receiving a test flight certificate from Brazil's civil aviation authority in September and conducting flight tests with Thailand's civil aviation authority [2] - The company has completed over 56,000 safe flights of autonomous eVTOL aircraft in 18 countries across Asia, Europe, North America, and Latin America [2] Financial Projections - Revenue is expected to grow from RMB 422 million in 2024 to RMB 1.255 billion in 2026, with non-GAAP net profit turning positive at RMB 11 million in 2024 and reaching RMB 252 million in 2026 [2][13] - EH216-S deliveries are projected to increase from 202 units in 2024 to 624 units in 2026, with ASP remaining stable at around RMB 1.96 million [13][17] - Gross margin is expected to stabilize at around 60% from 2024 to 2026, with non-GAAP net profit margin improving from 3% in 2024 to 20% in 2026 [13][17]

Investment Rating - The report assigns an "Outperform" rating to the company [4][5]. Core Insights - The company achieved a revenue of 128 million yuan in Q3 2024, representing a year-on-year growth of 348%. For the first three quarters of 2024, total revenue reached 290 million yuan, up 379.9% year-on-year. The net profit for the same period was -183 million yuan, an improvement from -230 million yuan in the previous year [1][7]. - The growth in revenue is primarily attributed to the increased delivery of the EH216 series aircraft, with a total of 138 units delivered in the first three quarters of 2024, marking a 375.9% increase year-on-year [1][7]. - The company is making steady progress in obtaining its Operational Certificate (OC), with expectations to receive the first OC by the end of this year. The current backlog of orders for the EH216 series exceeds 1,500 units [1][19]. Summary by Sections Financial Performance - In Q3 2024, the company reported a total revenue of 128 million yuan, a 347.8% increase year-on-year and a 25.6% increase quarter-on-quarter. The net profit for Q3 was -48.06 million yuan, an improvement from -67.12 million yuan in the same quarter last year [1][7]. - The adjusted net profit (non-GAAP) for Q3 2024 was 15.7 million yuan, compared to a loss of 31.3 million yuan in Q3 2023 [1][7]. - The gross margin for Q3 2024 was 61.2%, with a net margin of -37.6%, showing significant improvements in both metrics compared to previous periods [14]. Order Backlog and Market Demand - The company has a robust order backlog, with over 1,100 new purchase orders and pre-orders received since obtaining the Airworthiness Certificate (AC) for the EH216 series [1][24]. - The report highlights various customer orders, including significant contracts from Zhejiang Xiangyuan Cultural Tourism and Wenzhou Wencheng Transportation Development Group, among others, indicating strong market demand for the EH216 series [24][28]. Strategic Developments - The company is collaborating with various partners to establish UAM (Urban Air Mobility) demonstration projects in multiple cities, including Hefei, Guangzhou, and Shenzhen, to promote the commercial operation of the EH216-S aircraft [29][34]. - A strategic partnership with the Civil Aviation Flight University of China has been established to develop training programs for UAV operators and maintenance personnel, supporting the growth of the low-altitude economy [33][34].

Core Viewpoint - EHang Holdings Limited has announced a Share Repurchase Program allowing the company to repurchase up to US$30 million of its American Depositary Shares or ordinary shares over the next 12 months, reflecting confidence in its long-term growth potential [1][2]. Group 1: Share Repurchase Program - The Board of Directors has approved a Share Repurchase Program for up to US$30 million [1]. - The repurchases may occur through various means including open market transactions, privately negotiated transactions, and block trades, depending on market conditions [2]. - The program will be funded from the company's existing cash balance and cash generated from operations [2]. Group 2: Company Overview - EHang is recognized as the world's leading Urban Air Mobility technology platform company, focusing on safe, autonomous, and eco-friendly air mobility solutions [3]. - The company provides unmanned aerial vehicle systems and solutions across multiple sectors, including passenger transportation, logistics, smart city management, and aerial media [3]. - EHang's flagship product, the EH216-S, has received the world's first type certificate, production certificate, and standard airworthiness certificate for pilotless eVTOL from the Civil Aviation Administration of China [3].

Investment Rating - The report maintains a "Buy" rating for EHang Intelligent (EH US) with a target price of US$18.84, indicating a potential upside of approximately 20% from the current price of US$15.67 [2][3][10]. Core Insights - EHang delivered 63 units of the EH216-S in Q3 2024, marking the first quarter of positive Non-GAAP operating profit and positive operating cash flow for four consecutive quarters [6][8]. - The company is expected to receive its first Operational Certificate (OC) by the end of this year, which could attract more customers [7][9]. - Revenue for Q4 2024 is projected to be around RMB 135 million, with an estimated total revenue of RMB 427 million for the full year, representing a year-on-year growth of 263.5% [8][10]. Financial Summary - The target price has been adjusted from US$19.71 to US$18.84, reflecting a 4% decrease [3][10]. - The 2024E EPS has been revised down to RMB 0.47 from RMB 0.86, a reduction of 46% [3][10]. - The 2025E EPS is slightly increased to RMB 2.72 from RMB 2.65, a 2% rise, while the 2026E EPS is raised to RMB 7.00 from RMB 6.72, a 4% increase [3][10]. - The company expects to deliver approximately 70 units of the EH216-S in Q4 2024, with a backlog of over 1,000 orders [18][10]. Revenue and Profitability Forecast - Revenue projections for 2024 have been slightly adjusted to RMB 4.31 billion, with a 12.6% reduction in net profit forecasted to a loss of RMB 2.29 billion [10][19]. - Non-GAAP net profit for 2024 is expected to be RMB 0.31 billion, down 45.1% from previous estimates [10][19]. - The company anticipates maintaining a gross margin of over 60% for the EH216-S due to a lack of direct competitors in the market [18][10]. Valuation - The report maintains a 10x P/S valuation for 2025, leading to the target price of US$18.84, which corresponds to a 20x P/S for 2024 [10][22]. - EHang's average trading multiple this year has been around 17x based on 2024 revenue forecasts, with the current valuation slightly above this average [22][10].

Financial Data and Key Metrics - Q3 2024 total revenues reached RMB128 1 million, a 347 8% year-over-year increase and a 25 6% quarter-over-quarter increase, driven by higher sales volume of EH216 series products [40] - Q3 gross margin was 61 2%, slightly down from 64 6% in Q3 2023 and 62 4% in Q2 2024, reflecting a competitive advantage in the eVTOL sector [41] - Adjusted operating income for Q3 was RMB9 million, a significant improvement from an adjusted operating loss of RMB34 2 million in Q3 2023 and RMB4 7 million in Q2 2024 [43] - Adjusted net income for Q3 was RMB15 7 million, marking a second consecutive quarter of profitability, compared to an adjusted net loss of RMB31 3 million in Q3 2023 and RMB1 2 million in Q2 2024 [43] - Positive operating cash flow was maintained for the fourth consecutive quarter, with a cash balance of RMB1,077 6 million at the end of Q3 [44] Business Line Data and Key Metrics - 63 units of EH216-S were delivered in Q3, a record high compared to 13 units in Q3 2023 and 49 units in Q2 2024 [40] - Domestic order book exceeded 1,000 units, with repeat orders from existing customers and new orders from clients in Fujian, Chongqing, Tianjin, Guizhou, and Shaanxi [25] - Strategic partnerships were formed with Enpower for electric motor development and Inx for high-energy solid-state battery technology, achieving a 90% improvement in flight endurance to 48 minutes [17][53] Market Data and Key Metrics - Demo flights were conducted in Brazil, Japan, and Thailand, extending the company's footprint to 18 countries globally [20] - EH216-S received an experimental flight authorization certificate from Brazil's National Civil Aviation Agency, with plans for more in-depth test flights to facilitate local airworthiness certification [20] - The Civil Aviation Authority of Thailand plans to open flight tests for certified eVTOLs, with commercial flight operations in Phuket and Samui targeted for 2025 [20] Company Strategy and Industry Competition - The company is focusing on enhancing EH216-S performance and commercializing a long-range product, VT-35, to complement the existing product portfolio [19] - Expansion of production capacity through joint ventures and contract manufacturing in Anhui, Shanxi, Guangxi, and Beijing is planned, with technical upgrades to the Yunfu factory starting in Q4 [31][61] - The company aims to achieve certification and mass production of solid-state batteries for EH216-S by the end of 2025 [54] Management Commentary on Operating Environment and Future Outlook - The company expects Q4 2024 revenue to reach RMB135 million, a 138 5% year-over-year increase, with full-year 2024 revenue expected to reach RMB427 million, a 263 5% year-over-year increase [47] - Ongoing improvements in low-altitude policies and increased government support for the low-altitude economy are expected to drive market demand for pilotless eVTOL aircraft [46] - The company is focusing on fine-tuning its commercialization model to enhance customer operations and achieve safe and stable operations as quickly as possible [46] Other Important Information - The company announced a $22 million PIPE investment from strategic investors, including Enpower and a Middle Eastern institutional investor, bringing total year-to-date financing to nearly $100 million [44] - The financing will be used to advance next-generation digital technology and products, scale production capacity, expand the team, establish new headquarters and operating sites, and support general corporate activities [45] Q&A Session Summary Question: Solid-state battery development with Inx - The joint development with Inx began early, focusing on increasing battery capacity density, cycle life, maintainability, and safety features, with mass production expected by the end of 2025 [51][54] - The solid-state battery has increased the EH216-S's flight endurance to 48 minutes, with a goal of reaching 60 minutes by next year [53] Question: Progress of Operator Certificate (OC) application - The OC review is progressing well, with most work completed and necessary adjustments submitted to the Civil Aviation Administration of China, with the first OC expected to be issued by the end of 2024 [55][57] Question: Production capacity and CapEx - CapEx for 2024 is $15 million, with $20 million planned for 2025, including technical upgrades to the Yunfu factory and construction of new factories in Guangzhou, Hefei, and Guangxi [60][61] - The impact of technical upgrades on production and delivery is expected to be minimal, with potential short-term disruptions offset by increased production capacity later on [63] Question: Breakeven point and supply chain strategy - As production scales up, battery and key component prices are expected to decrease, with gross margins maintained around 60% [70][79] - The company is focusing on enhancing core components like motors and batteries through collaborative development, strategic investments, and joint ventures [71] Question: VTC certification progress in overseas markets - The company is advancing overseas certification through bilateral airworthiness channels with the Civil Aviation Administration of China and exploring pilot programs in Brazil and Thailand [81][82] Question: Future operational plans in Hefei - The Hefei Hub is being developed to OC standards, with plans to build over 30 eVTOL takeoff and landing points in Hefei over the next three years [84] Question: Capacity ramp-up and order delivery - Production capacity is being enhanced through supply chain optimization and technical upgrades, with new factories planned to meet increasing demand [89][90] Question: CapEx investment in solid-state battery and collaboration - R&D investment in solid-state batteries is recorded as R&D costs, with intellectual property for core technologies and components jointly owned by EHang and its partners [96]

Core Insights - EHang Holdings Limited reported record-high quarterly revenues of RMB128.1 million (US$18.3 million), a 347.8% increase year-over-year and a 25.6% increase quarter-over-quarter, driven by significant sales of the EH216 series products [3][34] - The company achieved adjusted operating income of RMB9.0 million (US$1.3 million) and adjusted net income of RMB15.7 million (US$2.2 million), marking the second consecutive quarter of non-GAAP profitability [4][6] - EHang maintained positive operating cash flow for the fourth consecutive quarter and secured over US$22 million in strategic PIPE investment to enhance liquidity [7][29] Financial Performance - Total revenues reached RMB128.1 million (US$18.3 million), up 347.8% from RMB28.6 million in Q3 2023 and up 25.6% from RMB102.0 million in Q2 2024 [3][34] - Gross margin was 61.2%, down 3.4 percentage points from 64.6% in Q3 2023 and down 1.2 percentage points from 62.4% in Q2 2024 [3][37] - Operating loss improved to RMB54.7 million (US$7.8 million), a 21.8% improvement from RMB70.0 million in Q3 2023 and a 29.3% improvement from RMB77.4 million in Q2 2024 [4][43] - Net loss was RMB48.1 million (US$6.9 million), representing a 28.3% improvement from RMB67.1 million in Q3 2023 and a 32.8% improvement from RMB71.6 million in Q2 2024 [5][45] Business Developments - EHang achieved significant eVTOL sales and operational progress in various Chinese cities, with 63 units of the EH216 series delivered in Q3 2024, the highest quarterly delivery volume in the company's history [2][8] - The company is advancing its Air Operator Certification (OC) for commercial operations, with the first OC expected to be issued by the end of 2024 [19] - EHang has established strategic partnerships for talent training and technology development, including a partnership with the Civil Aviation Flight University of China [20][27] International Expansion - EHang expanded its international presence with flights in Brazil, Thailand, Japan, and the UAE, conducting over 56,000 safe flights with pilotless eVTOLs in 18 countries [21][25] - The company launched a UAM Hub in Hefei and is working on establishing additional vertiports and operational sites across various cities in China [10][9] Technological Advancements - EHang announced a breakthrough in solid-state battery technology, completing the first eVTOL solid-state battery flight test, which significantly improves flight endurance [26] - The company upgraded its lift-and-cruise eVTOL model to the VT-35, targeting inter-city and cross-bay applications [28]

GUANGZHOU, China, Nov. 15, 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 it has signed a cooperation framework agreement (“Agreement”) with Zhejiang Sunriver Culture and Tourism Co., Ltd. (“Sunriver”, 600576.SH), a China A-share listed company, to explore an industrial model that integrates low-altitude economy with cultural tourism in China. Under the Agreement, Sunriv ...

GUANGZHOU, China, Nov. 14, 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 strategic investment totaling over US$22 million. The investors are Zhuhai Enpower Electric Co., Ltd. (“Enpower”, SZ300681), a Chinese leading new energy vehicle power systems provider, and a strategic institutional investor from the Middle East. Both investors agree to a 180-day lock-up period. The s ...