EHang seals deal for eVTOL unmanned vehicles in China by Investing.com

Guangzhou, China – EHang Holdings Limited (NASDAQ:EH), a global leader in the electric vertical take-off and landing (eVTOL) sector valued at approximately US$1 billion, has formed a strategic partnership with the management committee of Torch High-Tech Industrial Development. Weihai City District, Shandong Province. according to InvestingPro According to the data, the company maintains impressive gross profit margins of over 62% and has shown a remarkable revenue growth of 355% in the last twelve months. This cooperation aims to drive the growth of China’s low-altitude economy through the deployment of eVTOLs.

Under the agreement, EHang has already received the full payment for an initial order of 30 units of EH216-S electric passenger drone from Weihai High-Tech Zone Culture and Tourism Industry Investment Co., Ltd. The two entities plan to establish a research, development and manufacturing base in Shandong, which will serve as EHang’s production center in the province.

Furthermore, the partnership will focus on developing a low-rise economic industrial zone to integrate the local economy with cultural tourism and other regional industries. This initiative is expected to accelerate the development of industry in Weihai High-tech Zone.

Commercial operations are also part of the collaboration, with plans to offer low-altitude tourism services that combine sightseeing and technological experiences. The company’s strong financial position is evidenced by its good current ratio of 2.39, which indicates strong liquidity to support its expansion plans. InvestingPro Subscribers can access more than 10 additional key insights into EHang’s financial health and growth prospects through the platform’s comprehensive professional research report. Prominent tourist sites such as Weihai International Beach and Xiaoxi Island will feature low-altitude sightseeing services. EHang will support the local operator with personnel training, infrastructure, route planning, test flights and preparations for air operator certification, accelerating commercial operations of the EH216-S in the Weihai high-tech zone.

Weihai High-Tech Zone is committed to leveraging government resources to support the development of the low-altitude industry, in line with the ambitious three-year plan of Shandong Province. an act (WA:) Plan for high-quality development of the economy of low-altitude areas (2025-2027). The plan aims to create a large number of digital low-altitude take-off and landing platforms and flight paths for drones, targeting a low-altitude economic scale of 100 billion RMB by 2027.

Zhao Wang, Chief Operating Officer of EHang, highlighted the demand for EH216 series products across various industries and expressed confidence in the implementation of EHang’s UAM solutions in Weihai, which is expected to provide new, environmentally friendly and cost-effective low rises. Operating model for the public.

This partnership is expected to be a key driver in promoting high-quality development of the low-rise economy of Weihai City and Shandong Province, with a global impact in the sector. Analysts maintain a bullish outlook for EHang, with price targets ranging from $16.86 to $32.68, indicating a potential upside. For deeper insights into EHang’s valuation metrics, growth potential, and comprehensive financial analysis, investors can explore the detailed coverage available at InvestingProwhich includes exclusive financial health results and forward-looking indicators. The information in this article is based on a press release issued by EHang Holdings Limited.

In other recent news, EHang Holdings Limited announced impressive Q3 2024 results and significant progress in the autonomous aerial vehicle (AAV) industry. The company achieved record deliveries and financial results, with 63 EH216-S units delivered and revenues reaching RMB 128 million. EHang has also obtained three airworthiness certificates for its drones, a first in the drone manufacturing sector, and is scheduled to receive its Operating Certificate (OC) by the end of the year.

EHang’s strategic initiatives, such as partnerships and developments in battery technology, pave the way for sustainable growth. The company recorded a year-on-year revenue increase of 347.8% and aims to achieve CNY135 million in the fourth quarter. EHang is also investing in solid-state battery technology, targeting mass production by the end of 2025, and has planned a capital expenditure of $15 million for the current year and $20 million for next year to increase production capacity.

These latest developments indicate a positive outlook for EHang, as it plans to reach CNY427 million in revenue for the full year and expand its manufacturing presence in several Chinese regions. Despite the slight decline in gross margin, the company maintains a strong cash balance of RMB 1,077.6 million and has secured significant investments for future growth. EHang’s strategic partnership with Enpower for electric motors and breakthroughs in solid-state battery technology are expected to improve in-flight endurance, strengthening the company’s position in the autonomous aerial vehicle industry.

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