According to a report published by Morgan Stanley, the value of Sunshine Oil Sands has gradually been realized. According to the company's plan to produce oil and strong oil reserves and financial support, the company's share-based investors have oversold sales after the ban period. The bank reiterated that it “outperforms the market”, with a target price of 5.5 yuan, believing that if the company can prove that its reserves reach 5.4 billion barrels of oil equivalent, there is still room for the company's value to rise.
Motong pointed out that the sale of the company's shares after the ban period ended mainly came from retail investors, accounting for only about 3% of the company's shares, and the company's liquidity improved after the initial public offering of the company's shares. At the same time, the company applied for a double listing on the Toronto Stock Exchange, making it easier for North American investors to trade.
According to the bank, the company expects to produce the first batch of oil within the next 9-12 months. The current progress is in line with expectations. It is estimated that as the company can achieve production targets and reduce project risks in the next 3-5 years, the company's shares will be gradually re-valued, but currently its valuation is seriously underestimated.