Raysut Cement Company (RCC) announced preliminary 3Q16 results with consolidated earnings of OMR3.8mn (-23% Y-o-Y, -23% Q-o-Q), coming in 20% below our estimate of OMR4.7mn. RCC reported consolidated revenue of OMR20.6mn (-9% Y-o-Y, -16% Q-o-Q, -7% EFGe) and operating profit of OMR4.2mn (-34% Y-o-Y, -24% Q-o-Q), missing our estimate by 20%, likely on lower-than-expected margins. Segment-wise and cement volume details are not yet available.   Our View: RCC reported a weak set of operational figures, potentially due to the current challenging economic scenario at its home and export markets and rising competition pressure, which we believe will sustain for some more time, in our view. Even though we estimate 2H16 and 2017 cement volume to take a breather on investment cycle slow down, the weak operational scenario reported in 3Q16 would further challenge our earnings estimates. Raysut Cement is trading at 2016e P/E of 13.0x and provides a dividend yield of 5.0% - a premium to its local peer Oman cement (2016e P/E of 10.6x, dividend yield of 6.7%). (Company, Sameer Kattiparambil, Tarek El-Shawarby)   Raysut Cement: OMR1.50 as of 16 October 2016, Rating: Neutral, FV: OMR1.36/share, MCap: USD789mn, RCCI OM / RAYC.OM