Net income – SAR173mn, -14% Y-o-Y, -35% Q-o-Q, -10%vs. EFGe Gross profit – SAR184mn, -15% Y-o-Y, -31% Q-o-Q, -11% vs. EFGe Net operating profit – SAR175mn, -15% Y-o-Y, -32% Q-o-Q, -11% vs. EFGe   Southern Cement Company has reported its preliminary 3Q16 headline figures, showing Y-o-Y earnings drop of 14% to SAR173mn, 10% below our estimate, driven by lower volumes, shrinking margins and high depreciation after adding the third production line in Tohama. Revenue was down 9% Y-o-Y to SAR380mn (-5% vs EFGe), driven by 9% drop in sales volumes (-5% vs. EFGe) on weak demand. Gross profit and EBIT were further down 15% for both (below estimate by 11%), driven by lower revenue and 3pp margin contraction. (Earnings release, Tarek El-Shawarby)   Southern Cement: SAR54.27 as of 17 October 2016, Rating: Neutral, FV: SAR71.00 per share, MCap: USD2,026mn, SOCCO AB / 3050.SE