Elevator Pitch
I assign a Neutral rating to Thailand-listed polyethylene terephthalate or PET producer Indorama Ventures (INDOY) (INDOF) (IRAMF) [IVL:TB].
Indorama Ventures is relatively more defensive and less affected by the decline in crude oil prices and COVID-19, compared with most of its petrochemical peers, as evidenced by its better-than-expected 1Q2020 results. M&A is expected to remain as a key growth and diversification strategy for Indorama Ventures, but the company's relatively high financial leverage is a concern, with efforts to deleverage possibly negatively impacted by COVID-19.
As such, I