Al Hassan Ghazi Ibrahim Shaker Co. (Shaker) [1214.SE] reported 1Q18 results, with net loss worsening to SAR20.6mn vs. net losses of SAR14.9mn in 1Q17 and SAR85.9mn in 4Q17. Revenues for the quarter fell 25% Y-o-Y as a result of a slower market demand for ACs and other household appliances, as well as a reduction is the share of results from associates (SAR16.2mn lower). Gross profit dropped 10% Y-o-Y to SAR52.8mn (gross margin widened 4.2pp to 24.6%), as the reduction in sales was partially offset by a reduction in COGS. EBIT was also in the red at SAR6.9mn vs. a net loss of SAR22.7mn in 1Q17), with operating and other expenses falling (also a SAR5.1mn provision for doubtful debt was booked last year). The company also noted that it witnessed an improvement in working capital and cut costs during the quarter. 
 
Shaker: SAR10.61 as of 7 May. 2018, Rating: Neutral, TP: SAR14.00/share, MCap: USD178mn, SHAKER AB/1214.SE