GUANGZHOU – EHang Holdings Limited (NASDAQ:EH), a global leader in urban air mobility (UAM) technology, has agreed with KC Smart Mobility Company Limited, a subsidiary of Kwoon Chung Bus Holdings Limited (0306.HK), to introduce its EH216-S pilotless electric vertical take-off and landing (eVTOL) aircraft in Hong Kong, Macau, and select Chinese cities.
KC Smart Mobility plans to purchase 30 units of the EH216-S model, aiming to support the Hong Kong Special Administrative Region's initiative to develop a low-altitude economy.
The collaboration aligns with recent statements from Hong Kong officials, including Chief Executive John Lee Ka-chiu and Professor Sun Dong, Secretary of Innovation, Technology, and Industry Bureau, who emphasized the region's commitment to fostering innovation within the low-altitude economy sector. The partnership is expected to set a precedent for UAM operations in Hong Kong, contributing to the evolution of the local tourism and air mobility market.
Kwoon Chung Bus Holdings Limited, established in 1948 and listed on the Hong Kong Stock Exchange since September 1996, has a substantial presence in the region's transportation sector. The company's fleet includes over 1,300 buses and 400 limousines, serving various markets across Hong Kong and mainland China.
EHang's EH216-S has achieved significant regulatory milestones, being the first pilotless eVTOL aircraft to receive type certification, production certification, and standard airworthiness certificate from the Civil Aviation Administration of China. The aircraft is designed to offer safe, autonomous, and eco-friendly air mobility solutions to a wide range of industries.
Zhao Wang, Chief Operating Officer of EHang, expressed excitement about the partnership with KCBH, highlighting the potential to advance UAM commercial operations in the region. Jingkai Zheng, Mainland China Business Director at KCBH, also remarked on the new era of extending passenger transport services to aerial dimensions.
This news is based on a press release statement from EHang Holdings Limited.
InvestingPro Insights
As EHang Holdings Limited (NASDAQ:EH) embarks on a transformative partnership with KC Smart Mobility Company Limited, investors are closely monitoring the company's financial health and market position. According to InvestingPro data, EHang has been profitable over the last twelve months, which is a positive sign for stakeholders expecting stability and growth from the urban air mobility (UAM) technology provider. This profitability is a key indicator of EHang's ability to sustain its operations and invest in future innovations within the low-altitude economy sector.
Additionally, an InvestingPro Tip suggests that EHang is trading at a low Price / Book (P/B) multiple. This metric could indicate that the company's market price is undervalued compared to its book value, potentially presenting an attractive opportunity for investors seeking to capitalize on the burgeoning UAM market. Furthermore, the fact that EHang's stock price often moves in the opposite direction of the market may appeal to investors looking for diversification in their portfolio, especially in a climate where traditional transportation stocks may fluctuate with broader market trends.
For investors interested in a deeper dive into EHang's financial metrics and strategic positioning, there are additional InvestingPro Tips available. These insights could provide valuable context for evaluating the company's prospects, especially in light of its latest business developments. To explore these tips and gain comprehensive investment analysis, visit InvestingPro and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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