Al Anwar Ceramics (AACT) reported its 1Q2016 headline numbers; net profit dropped 46% Y-o-Y to OMR1.15 million, missing our estimate by a wide margin (-31%) as revenue was lower than our estimate. Operating profit fell 48% Y-o-Y to OMR1.21 million (-35% vs our estimate) over Revenues of OMR6.2 million (-17% Y-o-Y, +5% Q-o-Q, -14% vs our estimate). Even though details are not yet available, we believe significant competition pressure – largely in its export markets – lead to weaker revenue and Impacted the operating margin significantly, which was down to 19.4% (-11.4pp Y-o-Y, -1.7pp Q-o-Q and -6.2pp vs our estimate).   Our view: Overall a weak set of results. Revenue and margin pressure clearly signals significant competition pressure in its markets (especially in Saudi Arabia - its second largest market after Oman), largely from imported products from India and China – which might have put pressure on sales volume and prices, in our view. With a weak outlook for construction activities regionally, we expect product demand to stay muted for some time, in our view. (Sameer Kattiparambil, Tarek El-Shawarby, company)