On the evening of November 18th, EH.US released its financial performance report for the third quarter of 2024.
In the third quarter, the revenue reached 128 million yuan, a year-on-year increase of 347.8% and a month on month increase of 25.6%. The quarterly revenue continued to reach a historical high, significantly exceeding Bloomberg's market expectation of 119 million yuan.
The sales revenue of EH216-S is the main source of revenue for Yihang Intelligence. In the third quarter, a total of 63 EH216-S aircraft were delivered, a rapid increase from the 13 aircraft delivered in the same period last year.
According to the financial report, Yihang Intelligent has achieved adjusted profits for two consecutive quarters, with an adjusted net profit of 15.7 million yuan, more than 10 times the adjusted net profit of 1.15 million yuan in the second quarter.
According to the expectations of various eVTOL companies for the certification schedule of model certificates, the industry has not yet reached a stage of fierce competition, and each product still needs time to complete complex and strict airworthiness certification. The short-term impact on the product delivery and domestic expansion of Yihang Intelligent is relatively small.
After the adjustment of Yihang Intelligent, the profit margin continues to improve, and the industry has a strong first mover advantage. As the only eVTOL company that has obtained three airworthiness certificates, Yihang Intelligence has pricing power in the market, and with a high gross profit margin of 60%, the adjusted profit margin tends to stabilize, and there is still room for improvement compared to the previous period.
In addition, Yihang Intelligent's cash reserves have improved, achieving positive operating cash flow for four consecutive quarters.
In terms of performance outlook, Yihang Intelligence expects to generate revenue of approximately RMB 135 million in the fourth quarter, a year-on-year increase of 138.5%, maintaining a quarterly growth trend. It is expected to generate revenue of RMB 427 million for the full year of 2024, a year-on-year increase of 263.5%.
Since the third quarter of last year, the EH216 series has received over 1100 orders and intended orders in China.
Hu Huazhi, founder, chairman, and CEO of Yihang Intelligence, stated that they will continue to promote technological progress, including continuous research and development of solid-state batteries to enhance endurance, as well as long-range eVTOL models to expand business operations, support intercity and intercity UAM application scenarios, and meet the growing demands of the industry and stakeholders.
EVTOL has extremely high requirements for the reliability of battery motors. Investment cooperation and joint research and development through the supply chain collaboration model can effectively enhance the safety and reliability of products.
It is reported that Yihang Intelligence is focusing on eVTOL solid-state batteries to improve product range and developing long-range product VT-35, continuously expanding product application scenarios and market competitiveness, and seizing the opportunity in the low altitude market.
Recently, Yihang Intelligent EH216-S, equipped with a high-energy solid-state lithium battery jointly developed with Xinjie Energy, completed its first eVTOL flight with a solid-state battery. The flight time was significantly increased to 48 minutes and 10 seconds, and the endurance time was improved by 60% to 90%.
According to sources related to Yihang Intelligence, in the future, Yihang Intelligence will further test and optimize the performance and stability of EH216-S with Xinjie Energy, aiming to achieve the certification and mass production of solid-state batteries in EH216-S by the end of 2025.
In addition, in the eVTOL motor industry chain, Yihang Intelligent has reached a cooperation agreement with Ingersoll Rand (300681. SZ) to jointly develop high-performance motors and motor controllers suitable for Yihang Intelligent Electric Vertical Takeoff (eVTOL) aircraft series products.
On November 18th, Sun Weiguo, Director of the General Aviation Business Department and Drone Working Committee of the China Air Transport Association, revealed at the 2024 International Electric Aviation (Kunshan) Forum that the Central Air Traffic Management Commission will soon launch eVTOL pilots in six cities. According to media reports, the six pilot cities have been preliminarily identified as Hefei, Hangzhou, Shenzhen, Suzhou, Chengdu, and Chongqing, and the commercialization of eVTOL is expected to accelerate.
As of now, Yihang Intelligence has obtained coverage from 16 domestic and foreign securities firms including Goldman Sachs, Morgan Stanley, Deutsche Bank, UBS, etc., and has been rated as "buy", "increase" or "better than the market", with a maximum target price of $32.98.