Oman Cement Company (OCC) reported 3Q16 headline results with net profit of OMR2.9mn (+88% Y-o-Y, -3% Q-o-Q), came in line with our OMR2.8 (+4%) estimate despite the company reported lower-than-expected revenue. Revenue was flat Y-o-Y at OMR12.4mn (-15% Q-o-Q) missed our estimate by 13%. We believe the earnings surge Y-o-Y was due to below EBIT items (mainly investment books, which reported OMR0.9mn loss in 3Q15). The company did not provide further details on cement unit sales or prices.   We expect 2016 net profit to improve 19% Y-o-Y on 12% Y-o-Y revenue growth as OCC moves to normalised production after disruptions in 2Q15. We also forecast margins to expand as it has completely moved to in-house clinker, compared to 2Q15 and 3Q15, where it had to import costly clinker to offset the clinker shortage due to the Kiln repair. Oman cement currently valued at 2016e P/E of 10.4x, dividend yield of 6.8%, a discount to its local peer Raysut cement. (Company, Sameer Kattiparambil, Tarek El-Shawarby)   Oman Cement Co: OMR0.440 as of 10 October, Rating: Neutral, FV: OMR0.518/share, MCap: USD383mn, OCOI OM / OCCO.OM