Net income – SAR70mn, -39% Y-o-Y, -39% Q-o-Q, -16% vs. EFGe Revenue – SAR171mn, -19% Y-o-Y, -22% Q-o-Q, -6% vs. EFGe Gross profit – SAR84mn, -33% Y-o-Y, -30% Q-o-Q, -12% vs. EFGe Net operating profit – SAR78mn, -35% Y-o-Y, -32% Q-o-Q, -16% vs. EFGe   Qassim Cement Company has reported its preliminary 3Q16 headline figures, showing 39% Y-o-Y earnings decline to SAR70mn, (-16% versus our estimate), on lower sales volume due to lower demand and higher cost of production, driven by energy cost hike, as well as lower other income.   Revenue was down 19% Y-o-Y to SAR171mn, broadly in line with our estimate (-6%), driven by lower sales volumes and selling prices; sales volumes for July and August combined witnessed a 10% Y-o-Y decrease. Gross profit and EBIT fell c34% Y-o-Y on average, fully attributable to hike in production costs and lower sales volume and value. Gross and EBIT margins were both down 11 pp Y-o-Y to 49.3% and 45.8% respectively, below our estimate by 3.5 pp. (Tadawul, Tarek El-Shawarby)   Qassim Cement: SAR51.25 as of 09 October 2016, Rating: Neutral, FV: SAR65.30 per share, MCap: USD1,230mn, QACCO AB / 3040.SE