Net income – SAR55mn, -38% Y-o-Y, +28% Q-o-Q, +9% vs. EFGe Revenue – SAR232mn, -3% Y-o-Y, +35% Q-o-Q, +4% vs. EFGe Gross profit – SAR72mn, -24% Y-o-Y, +31% Q-o-Q, +6% vs. EFGe Net operating profit – SAR56mn, -30% Y-o-Y, +47% Q-o-Q, +4% vs. EFGe   Eastern Cement Company has reported its preliminary 4Q16 headline figures. Earnings dropped 38% Y-o-Y, 44% broadly in line with our estimate (+9%). The company cited that the decrease in earnings was driven by i) increase in COGS, ii) increase in SG&A and other expenses, iii) drop in sales volumes on weak demand, and, iv) lower investment income.   Revenue was almost flat Y-o-Y at SAR232mn (-3%), in line (+4%) despite a 19% decrease in sales volume as the average selling price was up 20% Y-o-Y likely on higher contribution of high priced pre-fabricated concrete. Gross profit was down 24% Y-o-Y (margin shrink 8 pp to 31%) while EBIT drop 31% on increase in SG&A expenses (+24% Y-o-Y) and EBIT margin contracted 10 pp Y-o-Y to 24%. (Tarek El-Shawarby)   Eastern Cement: SAR31.40 as of 16 January 2017, Rating: Buy, TP: SAR40.70 per share, MCap: USD720 million, EACCO AB / 3080.SE