Real Assets, Real Cashflows

Research evidence excerpt

Real Assets, Real Cashflows

Idea

June 30, 2026 09:30 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MASEAN Infrastructure | Asia Pacific Ryan M Heng

Equity Analyst

Real Assets, Real Cashflows Ryan.Heng@morganstanley.comMayank Maheshwari +65 6834-6465

Mayank.Maheshwari@morganstanley.com +65 6834-6719

With AI shortening the half-life of intangible advantages, Vivek Rajamani

businesses with a combination of long duration, low EquityVivek.Rajamani@morganstanley.comAnalyst +65 6834-6740

obsolescence and visible cashflows are becoming scarcer, in our Morgan Stanley India Company Private Limited+

view, driving a re-rating across infrastructure assets. Pranitha Shetty

Research Associate

The runways, the docks, and the pipes: Low technological obsolescence, high Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Hinal Choudhary

capital and captive market businesses in an AI-accelerating world are demanding a

premium. Capital intensive global equities have outperformed capital light peers by Hinal.Choudhary@morganstanley.com +91 22 6118-2044

~35% since 2025. We see AOT, ICT and Maynilad as key beneficiaries alongside

power infrastructure names with cashflows compounding across the 25+ years of

remaining concession life.

Prefer AOT and ICT over Maynilad: As geopolitical tensions become less

prominent, we see energy and risk premia compression restoring trade lanes, and ASEAN Utilities and Infrastructure

Asia Pacific

lowering insurance and fuel costs. We prefer names such as AOT and ICT with Industry View In-Line

higher leverage to volume upside potential over those with more stable and

With this note, Ryan Heng assumes coverage of

defensive earnings. AOT is more leveraged to passenger traffic and the

Airports of Thailand (AOT.BK), International