Ehang $EH
Ehang is an autonomous aerial vehicle (AAV) technology platform company. $EH's mission is to make safe, autonomous and eco friendly air mobility accessible to everyone. This thread will cover all the main points that you need to know about $EH.
Let's get started!👇👇
Ehang is an autonomous aerial vehicle (AAV) technology platform company. $EH's mission is to make safe, autonomous and eco friendly air mobility accessible to everyone. This thread will cover all the main points that you need to know about $EH.
Let's get started!👇👇
Problem
Today our inner city transportation is limited on the road for most instances, with congestions common in populated cities, and pollution with gas cars. Both time and money are being wasted.
Today our inner city transportation is limited on the road for most instances, with congestions common in populated cities, and pollution with gas cars. Both time and money are being wasted.
Solution
$EH aims to bring a safe, cost effective and easy to use air mobility solution into the real world, which saves people time from travelling. With $EH's AAV powered by electricity, it will minimise pollution too.
$EH aims to bring a safe, cost effective and easy to use air mobility solution into the real world, which saves people time from travelling. With $EH's AAV powered by electricity, it will minimise pollution too.
$EH's Goal
$EH aims to become an air mobility service provider of integrated door-to-door air transportation products for individuals. EH's founder, Huazhi Hu, said the goal of $EH is to make flight as accessible and as cheap as an Uber ride.
$EH aims to become an air mobility service provider of integrated door-to-door air transportation products for individuals. EH's founder, Huazhi Hu, said the goal of $EH is to make flight as accessible and as cheap as an Uber ride.
Total Addressable Market
According to Frost & Sullivan, the global commercial unmanned aerial vehicle market is expected to grow to US$103.7 billion in 2023, CAGR of 95%. China will become the largest market taking ~45% share. 50% of this market will be in logistics.
According to Frost & Sullivan, the global commercial unmanned aerial vehicle market is expected to grow to US$103.7 billion in 2023, CAGR of 95%. China will become the largest market taking ~45% share. 50% of this market will be in logistics.
A longer time frame...
Morgan Stanley has said that urban air mobility market is expected to reach 1.5 trillion USD in 2040, indicating a huge and lucrative market in the long run.
Morgan Stanley has said that urban air mobility market is expected to reach 1.5 trillion USD in 2040, indicating a huge and lucrative market in the long run.
$EH's Product
Currently $EH offers their air mobility solutions for both passenger transportation and logistics, which includes Ehang 184, flagship 216 and VT-30. $EH also offers smart city management and aerial media services.
Currently $EH offers their air mobility solutions for both passenger transportation and logistics, which includes Ehang 184, flagship 216 and VT-30. $EH also offers smart city management and aerial media services.
Ehang 184
The Ehang 184 was unveiled in January 2016. It is the world's first passenger grade AAV eVTOL (electric vertical take-off and landing). 184 has a load capacity of 100kg, cruise time of 23 mins, and average speed of 100kg.
The Ehang 184 was unveiled in January 2016. It is the world's first passenger grade AAV eVTOL (electric vertical take-off and landing). 184 has a load capacity of 100kg, cruise time of 23 mins, and average speed of 100kg.
Ehang 216
$EH unveiled the Ehang 216, a dual seat eVTOL, in March 2018. It can take a 220kg max load, 35km range with max load and reach 130km/h max speed. This is $EH's flagship and best selling AAV.
$EH unveiled the Ehang 216, a dual seat eVTOL, in March 2018. It can take a 220kg max load, 35km range with max load and reach 130km/h max speed. This is $EH's flagship and best selling AAV.
A quick $EH AAV introduction video for you who are interested.
Abit of my thoughts
Both Ehang 184 and 216 are flyable AAV (with many trials). However the cruise time of 23 mins and 35 km range for 184 and 216 respectively means that it is still not ready for the mass market to me. One battery charge also needs to take 1~2 hours.
Both Ehang 184 and 216 are flyable AAV (with many trials). However the cruise time of 23 mins and 35 km range for 184 and 216 respectively means that it is still not ready for the mass market to me. One battery charge also needs to take 1~2 hours.
Ehang VT-30
The VT-30 is unveiled in 2021 May. It is aim to fulfil the inter-city traffic connection, which cannot be performed by the 184 and 216 due to lack of range. VT-30 has a range of 300km and battery life of 100 minutes. This makes $EH's offering more comprehensive.
The VT-30 is unveiled in 2021 May. It is aim to fulfil the inter-city traffic connection, which cannot be performed by the 184 and 216 due to lack of range. VT-30 has a range of 300km and battery life of 100 minutes. This makes $EH's offering more comprehensive.
Usage
These $EH AAVs can be used for daily commuting, sightseeing, search and rescue, and emergency and disaster response.
These $EH AAVs can be used for daily commuting, sightseeing, search and rescue, and emergency and disaster response.
Not for commercial use YET
Although $EH has received multiple airworthiness certificate. At the moment, $EH can only conduct trial flights and cannot operate commercially. $EH is on its way to obtain the final certificate that is required for commercial use.
Although $EH has received multiple airworthiness certificate. At the moment, $EH can only conduct trial flights and cannot operate commercially. $EH is on its way to obtain the final certificate that is required for commercial use.
The Civil Aviation Administration of China (CAAC) has accept $EH's application of the airworthiness certification for the 216 last year. Officials have been working closely with $EH, and optimistically, $EH expects to receive this certificate by 2021, but nothing is concrete yet.
Strategic partner - DHL
$EH has partnered with DHL to provide for last mile delivery in China. Drones can save human labour costs and provide for faster logistics solutions. Routes are automated and there is a standardised process for the efficient delivery.
$EH has partnered with DHL to provide for last mile delivery in China. Drones can save human labour costs and provide for faster logistics solutions. Routes are automated and there is a standardised process for the efficient delivery.
Logistics Trial Permit
$EH's 216 has received the first permit in the world for air commercial logistics trial flights in 2020. The $EH 216 can deliver goods over 150kg. $EH has also received permit in Austria, the first in Europe.
$EH's 216 has received the first permit in the world for air commercial logistics trial flights in 2020. The $EH 216 can deliver goods over 150kg. $EH has also received permit in Austria, the first in Europe.
Similar to $EH's passenger grade AAV, the weight that a drone can carry (40km ~ 250km) and the range per charge (around 20 mins per charge) still have massive room for improvements.
Safety first
Safety is $EH's top priority. Everything of an $EH AAV is backed up. Two of $EH's founder's close friends have died in helicopter crashes, therefore, inspiring Hu to make safety $EH's top priority and his personal goal.
Safety is $EH's top priority. Everything of an $EH AAV is backed up. Two of $EH's founder's close friends have died in helicopter crashes, therefore, inspiring Hu to make safety $EH's top priority and his personal goal.
Rigorous testing
$EH has conducted over 10000 flight tests of the 216 in 8 countries and 40 cities, in the past 3-4 years, including in winds of up to 70 kilometers per hour and in fog with a visibility of approximately 50 meters.
$EH has conducted over 10000 flight tests of the 216 in 8 countries and 40 cities, in the past 3-4 years, including in winds of up to 70 kilometers per hour and in fog with a visibility of approximately 50 meters.
Why autonomous?
All $EH's AAVs are autonomous. Huazhi Hu has commented that it is not practical and safe for everyone to get a flying license. $EH's founder believes that machines will be safer than humans overtime. Autonomous will also be easier to scale.
All $EH's AAVs are autonomous. Huazhi Hu has commented that it is not practical and safe for everyone to get a flying license. $EH's founder believes that machines will be safer than humans overtime. Autonomous will also be easier to scale.
Green
$EH AAVs are 100% run on batteries. The batteries can be charged in 1 hour with 380V (industrial), and can also be charged with normal 220V power (but slower).
$EH AAVs are 100% run on batteries. The batteries can be charged in 1 hour with 380V (industrial), and can also be charged with normal 220V power (but slower).
Not only a hardware provider
$EH is aiming to gradually transition from a pure equipment manufacturer to an urban air transportation operation service provider. $EH aims to become both the hardware and software provider for air traffic.
$EH is aiming to gradually transition from a pure equipment manufacturer to an urban air transportation operation service provider. $EH aims to become both the hardware and software provider for air traffic.
$EH control center
$EH in 2017, has established their own command and control center for air transportation, logistics, smart city operation and aerial media, the first of its kind in the world. Every $EH AAV can be control by this center control system.
$EH in 2017, has established their own command and control center for air transportation, logistics, smart city operation and aerial media, the first of its kind in the world. Every $EH AAV can be control by this center control system.
Smart city management
$EH's AAVs can be used for fire control, environmental monitoring and traffic management. The $EH 216F is a firefighting model that can be deployed for urban high rise firefighting.
$EH's AAVs can be used for fire control, environmental monitoring and traffic management. The $EH 216F is a firefighting model that can be deployed for urban high rise firefighting.
Falcon B Series
The $EH Falcon B Series allows business to customised flight platform solutions, e.g. public security management, environmental monitoring, inspections, surveying and mapping. It satisfies any business demands for flight platforms and solutions.
The $EH Falcon B Series allows business to customised flight platform solutions, e.g. public security management, environmental monitoring, inspections, surveying and mapping. It satisfies any business demands for flight platforms and solutions.
Aerial Media
$EH provides fleet formation performance. $EH AAVs can display tailor-made messages and images for any branding or advertising requirements. A drone show of over 1000 drones can be operated by one person with one computer, achieving great cost effectiveness.
$EH provides fleet formation performance. $EH AAVs can display tailor-made messages and images for any branding or advertising requirements. A drone show of over 1000 drones can be operated by one person with one computer, achieving great cost effectiveness.
Competitors
$EH is currently the leader of the AAV field with first mover advantage. However, many competitors are entering. Many are still in early development stage with prototypes. This industry will like have fierce competition for years to come given its large potential.
$EH is currently the leader of the AAV field with first mover advantage. However, many competitors are entering. Many are still in early development stage with prototypes. This industry will like have fierce competition for years to come given its large potential.
Delivery Number
A $EH 216 sells for ~330k USD. $EH has delivered 70 units of 216 in 2020, a 15% YoY growth. Around 40% of the orders come from China. This growth is sluggish and $EH has pointed to Covid 19. $EH are aiming to produce ~250 units of $EH 216 in 2021.
A $EH 216 sells for ~330k USD. $EH has delivered 70 units of 216 in 2020, a 15% YoY growth. Around 40% of the orders come from China. This growth is sluggish and $EH has pointed to Covid 19. $EH are aiming to produce ~250 units of $EH 216 in 2021.
$EH is building a new Yunfu Production facility that can deliver over 600 units a year. The facility will commence on August 18, 2021, as $EH host their investor day too.
Revenue, Gross Profit & Margin
$EH has made a revenue of 180 million RMB in 2020, a 47.8% YoY growth. Gross profit comes in at 106 million RMB, a 49.1% growth. Gross margin is at 59%.
$EH has made a revenue of 180 million RMB in 2020, a 47.8% YoY growth. Gross profit comes in at 106 million RMB, a 49.1% growth. Gross margin is at 59%.
Revenue Breakdown
$EH currently earns most of its revenue from air mobility solutions at 58.85%, followed by aerial media solutions of 36.5% and smart city management of 4.6%. As time progresses, $EH should earn more of its services rather than selling AAVs.
$EH currently earns most of its revenue from air mobility solutions at 58.85%, followed by aerial media solutions of 36.5% and smart city management of 4.6%. As time progresses, $EH should earn more of its services rather than selling AAVs.
Money losing...
$EH is still losing money, and has an operating loss of 91 million RMB and adjusted operating loss of 36 million RMB in 2020. Operating margin and adjusted operating margin are still negative at -50.7% and -20.2% respectively.
$EH is still losing money, and has an operating loss of 91 million RMB and adjusted operating loss of 36 million RMB in 2020. Operating margin and adjusted operating margin are still negative at -50.7% and -20.2% respectively.
Balance sheet
$EH has 21 million of cash and 24 million of total current liabilities. $EH's CFO has commented that with private investment of $40 million in late January, it is expected that $EH has adequate funding to support the operations in the next 12 to 24 months at least.
$EH has 21 million of cash and 24 million of total current liabilities. $EH's CFO has commented that with private investment of $40 million in late January, it is expected that $EH has adequate funding to support the operations in the next 12 to 24 months at least.
However, $EH will still many funding until it can conduct large scale commercial flights, which should be years (at least 3~5 IMO) away. Therefore, liquidity may become an issue in the future.
Valuation, share price, market cap
$EH currently has a market cap of 1.45 billion and a share price of $26.3. $EH is selling at a EV/revenue of 72.82x and a P/S ratio of 52.23. They are by every means 'expensive'.
$EH currently has a market cap of 1.45 billion and a share price of $26.3. $EH is selling at a EV/revenue of 72.82x and a P/S ratio of 52.23. They are by every means 'expensive'.
Risks...
1. $EH at this moment is selling a story, and there must be high growth to support the valuation. Scale and wide spread adoption may still be years away, which means that this stock is very high risk and high reward.
1. $EH at this moment is selling a story, and there must be high growth to support the valuation. Scale and wide spread adoption may still be years away, which means that this stock is very high risk and high reward.
2. Price fluctuations
$EH price is pretty wild, with an ATH of 124 before. However, it has quickly plummeted by 63% because of Wolfpack's short report (which i believe has many wholes). Nevertheless, this stock will likely be on a roller coaster for the future.
$EH price is pretty wild, with an ATH of 124 before. However, it has quickly plummeted by 63% because of Wolfpack's short report (which i believe has many wholes). Nevertheless, this stock will likely be on a roller coaster for the future.
3. Regulations
$EH is in an industry that are heavily regulated, and the regulations are playing the chasing game. At the moment, $EH can only conduct trials and not wide spread commercial offering, and that will only change if more permissions are granted to $EH.
$EH is in an industry that are heavily regulated, and the regulations are playing the chasing game. At the moment, $EH can only conduct trials and not wide spread commercial offering, and that will only change if more permissions are granted to $EH.
Although $EH's CFO are pretty optimistic about the permission, $EH also admits that there are no firm date that they can provide as to when they can offer their products for commercial flights. Regulations will be tie with $EH for the foreseeable future.
4. Political risks
With any Chinese stocks, there are always political risks. Therefore, please size accordingly, because it is hard to predict what China will do (although I am of the opinion that nothing drastic would happen, this will depend on your own opinion).
With any Chinese stocks, there are always political risks. Therefore, please size accordingly, because it is hard to predict what China will do (although I am of the opinion that nothing drastic would happen, this will depend on your own opinion).
5. Accidents
If an accident happens with any $EH AAVs or even $EH's competitors, $EH will dive. IMO accidents are likely to happen sometime down the road, so there will likely be bumps.
If an accident happens with any $EH AAVs or even $EH's competitors, $EH will dive. IMO accidents are likely to happen sometime down the road, so there will likely be bumps.
6. Perception
Whether and when AAVs will become the next transportation method is still a question. People must feel 'safe' about $EH and its flight, and such trusts will take time to build but at the same time easily broken down.
Whether and when AAVs will become the next transportation method is still a question. People must feel 'safe' about $EH and its flight, and such trusts will take time to build but at the same time easily broken down.
7. Competitions
Although $EH is the leader in the AAV field as of now, more competitors are looking to enter this field. $EH will need to remain its competitive edge.
Although $EH is the leader in the AAV field as of now, more competitors are looking to enter this field. $EH will need to remain its competitive edge.
8. Tech issues
Currently the $EH models still have relatively short battery, short range, and small load capacity. These will need to be greatly improve in order for AAVs to truly be adopted into the main stream.
Currently the $EH models still have relatively short battery, short range, and small load capacity. These will need to be greatly improve in order for AAVs to truly be adopted into the main stream.
Conclusion
$EH in many ways are a very fun and exciting company to research for, and I cheer for $EH's founders vision. However, at the same time, I must acknowledge that $EH may need quite some years to enter into the mass public market.
$EH in many ways are a very fun and exciting company to research for, and I cheer for $EH's founders vision. However, at the same time, I must acknowledge that $EH may need quite some years to enter into the mass public market.
$EH in a lot of ways remind me of Peter Lynch saying that you should invest after you know the company can scale, and scaling are not being proved yet. Scaling will be a key for me to watch in the future.
$EH IMO have a lot of potential, its likely to either 10x or even more or just go to 0 because of issues (e.g. liquidity). It is definitely a high risks high reward stock, that I think people should only put what they are comfortable losing entirely into.
I will be keeping a close eye on $EH, and may start a small position, because it is the pioneer and leader in the AAV market. At the same time, I do think $EH need 5-10 years or more for it to growth tho.
END// Thank you for reading this thread, I hope you have learnt a thing or two about $EH. Please consider liking and retweeting this thread if you have enjoyed it! I really do appreciate your support!
Please also consider following me @JoshuaTai0427 where I posts regular threads like this one. I hope you have an awesome day and may God bless you! Thank you very much.
Tagging some people who may be interested. Would appreciate any thoughts from you guys on the thread or $EH! Thank you!
@LuoshengPeng
@reilly_mcadams
@Innovestor_
@MT_Capital1
@Arno_Lacompte
@diamondhands_v
@ytana_fbird
@sthttt
@AnthonyOhayon
@PoundingDaTable
@AviNMash
@LuoshengPeng
@reilly_mcadams
@Innovestor_
@MT_Capital1
@Arno_Lacompte
@diamondhands_v
@ytana_fbird
@sthttt
@AnthonyOhayon
@PoundingDaTable
@AviNMash
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