Morgan Stanley has released a research report stating that Contemporary Amperex Technology Co., Ltd. (CATL)'s announcement of acquiring a 17.4% stake in Hangzhou Zhonhen Electric Co., Ltd. for 4.1 billion yuan signifies the company's transition from an indirect supplier of energy storage batteries to a direct provider of data center power supply solutions for customers, deepening its involvement in AI power infrastructure. The firm maintains an "Overweight" rating on CATL's A-shares with a target price of 530 yuan, while its H-shares are rated "In-Line" with a target price of 655 Hong Kong dollars. The report noted that Hangzhou Zhonhen Electric specializes in power electronics technology, with businesses covering data center energy solutions (high-voltage direct current power systems), new energy vehicle charging infrastructure, and smart grid and industrial power supplies. Morgan Stanley believes this acquisition strengthens CATL's upstream and downstream integration capabilities in grid connection and smart energy systems, which are key components in addressing the power demands driven by data centers and AI. By enhancing capabilities in power transmission, system integration, and digital energy management, CATL can directly engage with end-users such as hyperscale data centers and AI operators.