Morgan Stanley discloses in its report that ASEAN consumer and healthcare equities saw further de-rating in the first half of 2025, leaving sector valuations at notably attractive levels. The investment bank notes that despite broad weakness in consumer spending—especially in Thailand and Indonesia—there are bright spots for investors seeking secular and sustainable earnings growth.
Thailand and Indonesia have experienced sluggish demand, with growth trailing expectations. In contrast, the Philippines stands out for its resilience, attributed to factors such as moderating inflation and the boost from increased spending around recent national elections, which have supported household consumption.
Indonesian and Thai consumer stocks are currently priced well below historical norms, with Morgan Stanley’s analysis revealing that Indonesian consumer sector equities are trading at a 33% discount compared to their five-year average forward price-to-earnings (P/E) multiple. Thai consumer stocks are positioned even lower, standing at a 47% discount to their historical averages.
The analyst identifies Thailand’s CP ALL (SET: CPALL) and the Philippines’ Jollibee Foods Corporation (JFC) as top choices within the consumer segment. In healthcare, Bangkok Dusit Medical Services (SET: BDMS) and Bumrungrad Hospital (SET: BH) are seen as attractive picks, with a particular preference for BH going into the second half of 2025 due to several anticipated positive catalysts.
