Certification Premium Has Unwound; Franchise Has Not

Research evidence excerpt

Certification Premium Has Unwound; Franchise Has Not

Idea

July 9, 2026 01:56 PM GMT

Morgan Stanley Asia Limited+MEHang Holdings Ltd | Asia Pacific Tim Hsiao

Equity Analyst

Certification Premium Has Tim.Hsiao@morganstanley.comPeggy Wang +852 2848-1982

Research Associate

Peggy.Pc.Wang@morganstanley.com +852 3963-3934

Unwound; Franchise Has Not Shelley Wang, CFA

What’s Changed Shelley.Wang@morganstanley.com +852 3963-0047

Joey Xu, CFA

EHang Holdings Ltd (EH.O) From To Equity Analyst

Price Target US$26.00 US$7.70 Joey.Xu@morganstanley.com +852 3963-0337

The drastic de-rating YTD has repriced EH from a

commercialization story back to a certification story. With the

low-altitude economy a national priority and EH still the only

holder of a passenger-eVTOL operating certificate, we stay EHang Holdings Ltd (EH.O, EH US)

constructive on the franchise, albeit slower regulatory progress. China Autos & Shared Mobility | China

Stock Rating Overweight

Why the stock collapse YTD? We think the sell-off is only partly about EHang. A Industry View In-Line

broad risk-off rotation out of loss-making, pre-scale China ADRs, light fund Price target US$7.70

Up/downside to price target (%) 37

positioning and an absence of concrete catalysts combined with a seasonally soft Shr price, close (Jul 8, 2026) US$5.63

52-Week Range US$20.45-5.32

1Q26 left the shares with little support. 1Q is always the trough for deliveries, and Sh out, dil, curr (mn) 73

this year it was especially thin as delayed annual report filing added a regulatory Mkt cap, curr (mn) Rmb2,808

EV, curr (mn) Rmb2,770

overhang. The stock now sits near their 52-week low, discounting market sentiment. Avg daily trading value (mn) US$14