Net income: SAR215.3mn, +3% Y-o-Y, -2% Q-o-Q, +1% vs. EFGe Revenue: SAR1,793.5mn, +18% Y-o-Y, +18% Q-o-Q, +16% vs. EFGe Operating Profit: SAR210.1mn, +6% Y-o-Y, -2% Q-o-Q, +4% vs. EFGe   Jarir Marketing reported its preliminary 4Q16 results, posting muted earnings growth for the second quarter in a row (+3% Y-o-Y), coming in line with our forecast (+1%) and slightly above BBG consensus (+6%). FY16 earnings were down 11% Y-o-Y. Top-line growth was impressive at 18% Y-o-Y (strongest since 1Q15) and 16% ahead of our numbers, mainly on strong electronics sales, especially smartphones on some promotions, as well as the launch of the iPhone 7. The company opened one showroom in the quarter (five in 2016, guidance was six), with network reaching 45 stores.  FY16 revenue fell 4% Y-o-Y. Margins fell across the board as a result of sales mix (higher contribution of lower-margin electronics that drove top-line growth). Gross margin fell c2.3pp to 13.6% leading to flat gross profit Y-o-Y (-2% vs. EFGe). Operating margin was down a tamer c1.3pp to 11.7% with EBIT up 6% Y-o-Y (+4% vs. EFGe), as SG&A costs surprisingly fell 24% Y-o-Y after rising 15% in 9M16.   Overall, a decent set of results, especially in light of strong revenues with no substantial margin and earnings erosion largely due to conservative operating costs. We have a Neutral rating on the stock, as we believe outlook is challenging, in light of weak discretionary spending trends in KSA. (Hatem Alaa, Nada S. Amin)   Jarir Marketing Co.: SAR118.42 as of 08 January 2017, Rating: Neutral, TP: SAR117.00 per share, MCap: USD2,842mn, JARIR AB / 4190.SE