Investment Thesis
Ag Growth International (AGGZF, TSX: AFN) (“AGI”) delivered better-than-expected results in Q1 2020, thanks to solid revenue growth in its U.S. segment and its acquisition of Militec in India. While AGI’s Q2 2020 result will likely be negatively impacted by COVID-19, the concern over food security may actually spark a wave of investments for food infrastructure across countries globally. Therefore, AGI should benefit from this trend in the long term. The company’s North American business should continue to improve in 2020, thanks to a better weather pattern than last year. AGI