Asia: Three Actionable Ideas

Research evidence excerpt

Asia: Three Actionable Ideas

Idea

July 5, 2026 10:25 PM GMTM

Asia | Asia Pacific Morgan Stanley Asia Limited+ Samuel Lee, CFA

Equity Strategist

Three Actionable Ideas Samuel.Sw.Lee@morganstanley.comHozefa Topiwalla +852 2239-1862

Hozefa.Topiwalla@morganstanley.com +852 2848-6595

WuXi AppTec – OW | Singapore Telecom – OW | Ajinomoto – OW

OW – WuXi AppTec (603259.SS): 2026 is set to be another breakout year for WuXi. Trading at a mid-to-high teens 1-year forward

P/E – below most of its slower-growing CDMO peers, major leading indicators for the novel small molecule market are

underappreciated, we believe.

OW – Singapore Telecom (STEL.SI): Asian telecoms are entering a new era. Using Singtel as a case study, we examine three

underappreciated potential corporate actions: monetisation of Optus AU, consolidation in Singapore, and AI infra assets IPO.

OW – Ajinomoto (2802.T): We expect valuation to rise relative to food industry peers in F3/27 as Ajinomoto’s unique ABF and

CDMO businesses forge ahead. We expect subsequent food price hikes to offset rising costs, heralding margin improvement heading

into F3/28. Latest closing prices as of July 3, 2026: WuXi

AppTec (603259.SS): Rmb124.12; Singapore

Links to reports:

Telecom (STEL.SI): S$4.47; Ajinomoto (2802.T):

WuXi AppTec Co Ltd: Powering the Global Supply Chain for Novel Small Molecule Drugs; Reiterate as Top Pick (29 Jun 2026)

¥6,167.

ASEAN & Australia Telecoms: The Great Unlocking? (29 Jun 2026)

Ajinomoto: ABF, CDMO Growth Poised to Accelerate (29 Jun 2026)

Exhibit 1: Performance summary

As of June 30 Absolute Relative*

No. of ideas 1515

Cumulative Outperformance (bps) 9,885

Avg holding period total return 4.4% 2.1% Morgan Stanley does and seeks to do business with