Street Calls of the Week
KIGALI - Chinese urban air mobility company EHang Holdings Limited (NASDAQ:EH), currently valued at $1.18 billion and trading near its InvestingPro Fair Value, conducted the first pilotless human-carrying flight of its EH216-S aircraft in Africa, the company announced in a press release Friday. The company has shown impressive revenue growth of 87% over the last twelve months.
The demonstration took place during the 9th Aviation Africa Summit & Exhibition in Kigali, Rwanda, in collaboration with China Road and Bridge Corporation (CRBC). Staff from the Rwanda Civil Aviation Authority (RCAA) and reporters from China Media Group were the first passengers to experience the flights.
Rwandan President Paul Kagame, Minister of Infrastructure Dr. Jimmy Gasore, RCAA Director General Silas Udahemuka, and Chinese Ambassador to Rwanda Wenqi Gao attended the event. President Kagame described the flight as "impressive" and said it "will drive the development of low-altitude transportation in Africa."
The flight received regulatory support from the RCAA and expands EHang’s global flight footprint to 21 countries across five continents, according to the company.
Rucheng Lu, Chief Engineer of EHang, said the company has completed over 73,000 safe flights with its aircraft. "This first human-carrying flight in Africa demonstrates EHang’s technical capabilities and system safety, making an important step in accelerating our global expansion," Lu stated. With a strong gross profit margin of 61.5% and a healthy current ratio of 2.5, InvestingPro analysis reveals 8 additional key insights about EHang’s financial health and growth potential, available exclusively to subscribers.
EHang plans to work with partners including CRBC to expand into the African market. Qilin Huang, Head of CRBC’s Rwanda Office, called the flight "a brilliant showcase of China’s cutting-edge technology" and said the company will "continue to explore eVTOL application scenarios in Africa."
The EH216-S received a type certificate, production certificate, and standard airworthiness certificate from the Civil Aviation Administration of China. The company describes the aircraft as the world’s first pilotless, human-carrying electric vertical takeoff and landing aircraft to receive such certification. Discover EHang’s complete financial story, growth metrics, and expert analysis in the comprehensive Pro Research Report, part of the extensive coverage available for 1,400+ US stocks on InvestingPro.
In other recent news, EHang Holdings Limited reported its second-quarter revenue results, which showed a significant year-over-year increase of 44% to RMB147 million. Despite this growth, the revenue figures fell short of analyst expectations. The company also reported an adjusted net profit of RMB9.4 million, marking a substantial increase of 683% from the previous year. Following these results, Jefferies adjusted its price target for EHang, lowering it to $24.38 from $30.40, while maintaining a Buy rating. Additionally, EHang announced a strategic partnership with China Road and Bridge Corporation to expand its pilotless aerial vehicles globally. This collaboration aims to leverage CRBC’s global presence in over 70 countries to market EHang’s products internationally. These developments reflect EHang’s ongoing efforts to expand its market reach and improve its financial performance.
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