4Q16 results highlights: Net income – SAR24mn, -84% Y-o-Y, -75% Q-o-Q, -73% vs. EFGe ; Gross profit – SAR66mn, -66% Y-o-Y, -35% Q-o-Q, -44% vs. EFGe ; Net operating profit – SAR45mn, -74%Y-o-Y, -49% Q-o-Q, -55% vs. EFGe   Arabian Cement Company has reported its preliminary 4Q16 headline figures, earnings fell 84% Y-o-Y and missed our estimate (-73%). The significant drop in net profit was due to lower sales volumes and prices as well as a hike in SG&A expenses.   Revenue fell 42% Y-o-Y, 16% below our forecast, mainly due to a significant drop in sales volumes of 32% Y-o-Y in 4Q16 driven by a demand slowdown and more price wars. Gross profit and EBIT were down 66% and 74% Y-o-Y respectively on shrinking margins (19pp and 23pp, respectively) due to lower revenue as well as a hike in SG&A (+16% Y-o-Y). (Tarek El-Shawarby, company)   Arabian Cement (Saudi): SAR42.85 as of 15 Jan 2017, Rating: Buy, TP: SAR60.00, MCap: USD1,143mn, ARCCO AB / 3010.SE