4Q15 Results Highlights: Net income – AED70mn (+5% Y-o-Y, -6% Q-o-Q) -18% vs. EFGe. Gross profit – AED223mn (-1% Y-o-Y, -21% Q-o-Q) -8% vs. EFGe. Net operating profit – AED92mn (+9% Y-o-Y, +7% Q-o-Q) -3% vs. EFGe   RAK Ceramics announced its preliminary 4Q2015 headline figures, showing reported earnings growth of 5% Y-o-Y (-18% vs our estimate) mainly driven by lower loss from discontinued operations of –AED2.0 million in 4Q2015 versus a loss from discontinued operations of AED27.0 million in 4Q2014. Earnings from continued operations fell 23% Y-o-Y driven by a drop in below EBIT items.   Revenue dropped 5% Y-o-Y to AED748 million (-4% Q-o-Q, -8% vs our estimate), while gross profit was flat at AED223 million (-8% vs our estimate) driven by margin improvement (+100 bps), EBIT on the other hand was up 9% Y-o-Y on lower SG&A (-7% Y-o-Y). EBITDA margin was up 140 bps Y-o-Y to 19%. We believe the margins improvement is due to better operational efficiencies likely on saving raw materials procurement.    Cash and Stock Dividends approved: On a different note RAK Ceramics board of directors (BoD) has approved a cash dividend of AED30 fils per share, implying a 10% dividend yield as well as 5% stock dividend. (Tarek El-Shawarby, company)