CATL(SZ:300750) Hua Er Jie Jian Wen·2025-09-17 00:56Core Insights - Morgan Stanley's report highlights CATL's advanced manufacturing capabilities and high complexity, which create significant barriers to entry and competitive advantages in quality and cost [1][4]. Group 1: Manufacturing Efficiency - CATL's factory has a production capacity of 2.2 million battery cells per day, supported by over 6,800 real-time quality control points, ensuring high yield and quality premiums [4]. - The factory processes 340,000 data transactions per second, establishing it as a truly smart factory [4]. - The complexity of CATL's production line, consisting of over 25,000 components, makes it extremely difficult for competitors to replicate [4]. Group 2: Capacity Expansion - CATL's current capacity utilization exceeds 90%, with plans to build an additional 250 GWh of capacity [5]. - The company aims to reach 800 GWh of capacity by 2025 and 1 TWh by 2026, positioning itself to meet future order demands [5]. - International expansion is on track, with projects in Hungary and Indonesia expected to start production in 2026, and a project in Spain planned for 2027 [5]. Group 3: Energy Storage Business - CATL's energy storage systems provide a significant internal rate of return (IRR) premium of approximately 14% in global markets and 7-8% in China [1][6]. - The company plans to enhance its energy storage product structure, focusing on higher-margin AC system products in the coming years [6]. - CATL is expected to achieve small-scale production of solid-state batteries by 2027, with a positive outlook on electric vehicle and energy storage deployments for the next year [5].