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GUANGZHOU, China - Urban air mobility company EHang Holdings Limited (NASDAQ:EH), currently valued at $1.23 billion and boasting impressive revenue growth of 168% over the last twelve months, has formed a strategic partnership with Reignwood Aviation Group to deploy electric vertical take-off and landing (eVTOL) aircraft across key tourism destinations, according to a press release issued Tuesday. According to InvestingPro analysis, the company maintains strong gross profit margins of 61% and holds more cash than debt on its balance sheet.
Under the agreement, Reignwood Aviation plans to integrate EHang’s EH216-S aircraft into its operations, initially focusing on low-altitude tourism services at its five operational bases throughout China. The collaboration aims to eventually expand into passenger transportation, aerial logistics, and emergency response services. With a healthy current ratio of 2.68, EHang appears well-positioned to support this expansion, as revealed by InvestingPro data, which offers comprehensive analysis through its Pro Research Reports covering over 1,400 US-listed companies.
The companies plan to establish integrated low-altitude service hubs for flight demonstrations, takeoff and landing services, energy supply, and maintenance. They also intend to develop a digitalized fleet management platform and create a "EHang Flight Training Center" to address talent needs in both domestic and international markets.
Internationally, the partnership will seek airworthiness certification and deployment of the EH216-S in Southeast Asian tourist destinations including Bangkok and Phuket.
Gang Zheng, Chairman of Reignwood Aviation Group, described the partnership as "a significant step forward in Reignwood Aviation’s intelligent transformation." The company operates a fleet of over 60 aircraft with a total investment of RMB 2.0 billion.
Zhao Wang, Chief Operating Officer of EHang, stated that Reignwood’s "extensive experience in general aviation operations, airport infrastructure, and international resource integration will be instrumental in accelerating the scale deployment and commercial operation of the EH216-S."
EHang’s EH216-S recently received the world’s first type certificate, production certificate, and standard airworthiness certificate for pilotless eVTOL aircraft from the Civil Aviation Administration of China. Analysts tracked by InvestingPro maintain a strong buy consensus on the stock, with price targets ranging from $20.09 to $30.54, reflecting confidence in the company’s growth trajectory. InvestingPro subscribers have access to 8 additional key insights about EHang’s financial health and market position.
In other recent news, EHang Holdings Limited announced a significant order for 50 EH216-S pilotless aircraft from Guizhou Scenic Tourism Development Co., Ltd. This order is part of a broader strategy to enhance low-altitude tourism in Guizhou province. Additionally, EHang has secured a purchase agreement with Jilin Aerospace Industry Development Investment Co. for 41 units of the same aircraft model, aimed at boosting urban mobility and emergency response in Changchun, Jilin Province. These developments follow EHang’s successful pilotless flights in Indonesia, marking a milestone in its global expansion strategy.
The company also reported first-quarter 2025 financial results with sales of RMB 26 million, a notable decline due to fewer-than-expected deliveries of its eVTOL aircraft. Despite this, EHang saw a slight improvement in its gross profit margin, which increased to 62.4%. BofA Securities adjusted its price target for EHang from $26 to $24 while maintaining a Buy rating, citing the company’s potential for recovery and growth in the eVTOL market. BofA had previously initiated coverage with a Buy rating, highlighting EHang’s strong position in the Chinese market and its advanced technology.
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