Net income – SAR55 million, +8% Y-o-Y, +103% Q-o-Q, 0% versus EFGe Gross profit – SAR117 million, +13% Y-o-Y, +33% Q-o-Q, -13% versus EFGe Net operating profit – SAR57 million, +14% Y-o-Y, +116% Q-o-Q, +4% versus EFGe   Dallah announced its preliminary 4Q2015 headline figures, showing solid operational results. Earnings grew 8% Y-o-Y to SAR55 million (in line). The company cited that the growth in earnings was driven by higher revenue from the opening of Dallah’s new clinics (65 new clinics) in early 2015, as well as increase in inpatients admitted and outpatients visits. Gross profit was up 13% Y-o-Y (-13% below our estimate) and net operating profit grew 14% Y-o-Y (broadly in line, +4%), likely on revenue growth and margin improvement as the company has rationalised some expenses. We expect revenue to grow 19% Y-o-Y in 4Q2015 (revenue figure is not yet disclosed).We expect Dallah to show sustained double-digit earnings growth over our forecast horizon as: i) the company has recently started operating its north clinics; ii) Dallah’s BoD has approved a plan to add 250 beds and 160 clinics on its land surrounding Dallah hospital that is expected to start operations in 2Q2018; and iii) clinics at the new hospital in west of Riyadh should start operations in late 2017 and inpatient rooms in late 2018. (Earnings release, Tarek El-Shawarby)