📊 SCEM: Breakout Confirmed as the Uptrend Resumes 🚀
🏛️ Fundamental Review:
📊 Business Quality:
SCEM is one of Egypt's leading cement manufacturers and a major player in the domestic construction materials sector. Backed by the international Vicat Group, the company has transformed into one of the strongest turnaround stories on the EGX. 🏗️
✅ Strengths & Catalysts:
The company has delivered exceptional financial results, with revenue growing more than 41% in FY2025 and Q1 2026 net profit exceeding 1.1B EGP. 📈
A major balance sheet restructuring eliminated legacy financial pressure, leaving the company in a much stronger financial position. 💪
Strong profitability, expanding margins, and continued demand from infrastructure projects support the long-term investment case. 🏗️
⚠️ Risks:
Cement producers remain exposed to fluctuations in fuel and electricity costs, which directly impact production margins. ⚠️
Operations are also sensitive to construction activity and government infrastructure spending cycles. 🌍
💰 Valuation:
Despite the recent rally, SCEM still appears reasonably valued relative to its earnings growth and operational turnaround, making it one of the stronger industrial names on the EGX. 💎
🔍 The Pulse:
SCEM has been one of my favorite breakout candidates since May. 👀
Last week, the stock successfully broke above its triangle pattern. 📈
This week's trading confirmed that breakout with continued buying pressure, strengthening the bullish technical structure. ✅
As long as the price remains above the major support at 67.00 EGP, the bullish trend remains intact. 💪
The breakout opens the door for a retest of the previous all-time high before targeting higher Fibonacci extension levels. 🚀
🧱 The Key Structural Boundaries
📍 Support Level, 67.00 EGP.
Holding above this level keeps the bullish breakout valid.
🎯 First Target, 75.00 EGP.
A retest of the previous all-time high.
🎯 Second Target, 81.77 EGP.
The next major Fibonacci extension target.
🎯 Final Target, 91.30 EGP.
The long-term technical projection if momentum continues.
🛑 Stop Loss, 65.00 EGP.
A confirmed close below the order block around 65.00 EGP invalidates the current bullish setup.
🎯 The Verdict:
SCEM remains one of the strongest industrial turnaround stories on the EGX. 🏆
Both the fundamentals and technical picture are now aligned after the confirmed triangle breakout. 📈
As long as the stock holds above 67.00 EGP, the probability favors continuation toward 75.00 EGP, followed by 81.77 EGP and potentially 91.30 EGP. 🚀
Risk remains well defined with a stop below the order block near 65.00 EGP. 🛡️
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🏛️ Fundamental Review:
📊 Business Quality:
SCEM is one of Egypt's leading cement manufacturers and a major player in the domestic construction materials sector. Backed by the international Vicat Group, the company has transformed into one of the strongest turnaround stories on the EGX. 🏗️
✅ Strengths & Catalysts:
The company has delivered exceptional financial results, with revenue growing more than 41% in FY2025 and Q1 2026 net profit exceeding 1.1B EGP. 📈
A major balance sheet restructuring eliminated legacy financial pressure, leaving the company in a much stronger financial position. 💪
Strong profitability, expanding margins, and continued demand from infrastructure projects support the long-term investment case. 🏗️
⚠️ Risks:
Cement producers remain exposed to fluctuations in fuel and electricity costs, which directly impact production margins. ⚠️
Operations are also sensitive to construction activity and government infrastructure spending cycles. 🌍
💰 Valuation:
Despite the recent rally, SCEM still appears reasonably valued relative to its earnings growth and operational turnaround, making it one of the stronger industrial names on the EGX. 💎
🔍 The Pulse:
SCEM has been one of my favorite breakout candidates since May. 👀
Last week, the stock successfully broke above its triangle pattern. 📈
This week's trading confirmed that breakout with continued buying pressure, strengthening the bullish technical structure. ✅
As long as the price remains above the major support at 67.00 EGP, the bullish trend remains intact. 💪
The breakout opens the door for a retest of the previous all-time high before targeting higher Fibonacci extension levels. 🚀
🧱 The Key Structural Boundaries
📍 Support Level, 67.00 EGP.
Holding above this level keeps the bullish breakout valid.
🎯 First Target, 75.00 EGP.
A retest of the previous all-time high.
🎯 Second Target, 81.77 EGP.
The next major Fibonacci extension target.
🎯 Final Target, 91.30 EGP.
The long-term technical projection if momentum continues.
🛑 Stop Loss, 65.00 EGP.
A confirmed close below the order block around 65.00 EGP invalidates the current bullish setup.
🎯 The Verdict:
SCEM remains one of the strongest industrial turnaround stories on the EGX. 🏆
Both the fundamentals and technical picture are now aligned after the confirmed triangle breakout. 📈
As long as the stock holds above 67.00 EGP, the probability favors continuation toward 75.00 EGP, followed by 81.77 EGP and potentially 91.30 EGP. 🚀
Risk remains well defined with a stop below the order block near 65.00 EGP. 🛡️
---
If you like my insights, follow and boost! 🙌💙🚀
🎁 $15 TradingView Discount:
tradingview.com/pricing/?share_your_love=mnmabroukw36ix ✨💸🤑
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.