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Sunshine Oilsands Ltd. (HK:2012)
:2012

Sunshine Oilsands (2012) AI Stock Analysis

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HK

Sunshine Oilsands

(OTC:2012)

Rating:40Underperform
Price Target:
HK$0.50
▲(4.17%Upside)
Sunshine Oilsands' overall stock score is heavily impacted by its challenging financial performance, characterized by negative profitability and high leverage. While the stock shows some potential technical recovery signals, the negative valuation metrics further weigh down the score.

Sunshine Oilsands (2012) vs. iShares MSCI Hong Kong ETF (EWH)

Sunshine Oilsands Business Overview & Revenue Model

Company DescriptionSunshine Oilsands Ltd. (2012) is an energy company focused on the development of its oil sands leases in the Athabasca oil sands region of Alberta, Canada. The company is engaged primarily in the exploration and production of bitumen, a heavy, viscous form of crude oil. Sunshine Oilsands aims to extract bitumen from its vast resource base through both mining and in-situ recovery methods, with a strong emphasis on environmentally responsible operations.
How the Company Makes MoneySunshine Oilsands Ltd. generates revenue through the exploration, extraction, and sale of bitumen. The company sells the extracted bitumen to refineries and other buyers, who then process it into usable petroleum products such as gasoline and diesel. Sunshine Oilsands relies on its ability to effectively develop its oil sands reserves using advanced recovery techniques, which are critical for maximizing output and profitability. Additionally, partnerships with other oil and gas companies for joint ventures or technology sharing may contribute to its earnings by enhancing operational efficiency and expanding market access.

Sunshine Oilsands Financial Statement Overview

Summary
Sunshine Oilsands is facing significant financial challenges, with negative profitability indicators and high leverage. The declining revenue and profitability, coupled with high debt levels and weak cash flow generation, highlight the company's precarious financial position. Strategic improvements are essential to stabilize operations and improve financial health.
Income Statement
30
Negative
The company has shown a declining trend in revenue from 2019 to 2024, with a significant drop in gross profit and EBIT margins. The gross profit margin and EBIT margin are negative, indicating inefficiencies and operational challenges. The net profit margin is also negative, demonstrating a lack of profitability and potential cash flow issues.
Balance Sheet
25
Negative
The company has a high debt-to-equity ratio, suggesting significant leverage and financial risk. Stockholders' equity has decreased substantially, and the equity ratio is low, indicating a lower financial cushion. These factors suggest financial instability and potential challenges in meeting long-term obligations.
Cash Flow
35
Negative
Operating and free cash flows have been consistently negative, indicating challenges in generating cash from operations. The free cash flow to net income ratio is also negative, reflecting inefficiencies in cash management and potential liquidity issues. Minimal improvements in cash flow are observed, but substantial risks remain.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.40M30.24M15.63M144.00K4.18M
Gross Profit-1.06M-18.12M-19.05M-8.91M-13.46M
EBITDA-16.45M-891.00K-53.10M49.23M30.49M
Net Income-75.39M-19.33M-65.40M1.47M2.23M
Balance Sheet
Total Assets739.02M745.93M747.72M755.72M761.66M
Cash, Cash Equivalents and Short-Term Investments841.00K1.02M542.00K312.00K838.00K
Total Debt383.21M351.05M352.77M307.91M311.38M
Total Liabilities722.17M654.88M637.71M579.36M596.24M
Stockholders Equity18.44M92.27M111.01M177.05M165.74M
Cash Flow
Free Cash Flow-4.30M-10.37M-22.92M-12.71M-12.81M
Operating Cash Flow-2.97M-7.59M-21.32M-9.89M-11.34M
Investing Cash Flow-735.00K-2.77M-1.59M-2.81M2.29M
Financing Cash Flow3.52M10.37M23.13M12.13M8.65M

Sunshine Oilsands Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.48
Price Trends
50DMA
0.54
Negative
100DMA
0.47
Positive
200DMA
0.51
Negative
Market Momentum
MACD
0.02
Positive
RSI
41.91
Neutral
STOCH
12.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2012, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.54, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2012.

Sunshine Oilsands Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
HK$190.58M2.6335.12%31.05%-66.07%
57
Neutral
HK$84.34B3.62-2.08%4.89%-4.66%-42.32%
48
Neutral
HK$114.93M
-15.02%-105.66%
46
Neutral
HK$203.93M
-61.42%22.39%
43
Neutral
HK$512.77M-6.77%-5.18%56.71%
40
Underperform
$163.62M-155.60%-46.94%-89.98%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2012
Sunshine Oilsands
0.48
-0.11
-18.64%
HK:3395
JX Energy Ltd.
0.39
0.21
116.67%
HK:1229
Nan Nan Resources Enterprise Limited
0.25
0.09
56.25%
HK:1555
MIE Holdings Corp.
0.03
0.01
54.55%
HK:0632
CHK Oil
0.57
0.49
612.50%

Sunshine Oilsands Corporate Events

Sunshine Oilsands Appoints New Non-Executive Director
Jul 2, 2025

Sunshine Oilsands Ltd. has announced the appointment of Mr. Yonglan Chen as a non-executive director, effective July 2, 2025. Mr. Chen brings extensive experience in asset management and private equity, having held significant roles at Fullerton Fund Management and EURAZEO Group. His appointment is expected to enhance the company’s strategic direction and governance, potentially impacting its market positioning and stakeholder relations positively.

Sunshine Oilsands Ltd. Announces Board Composition and Governance Structure
Jul 2, 2025

Sunshine Oilsands Ltd. announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The board is structured with four committees: Audit, Compensation, Corporate Governance, and Reserves, each with designated members and chairpersons. This announcement is significant as it outlines the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

Sunshine Oilsands Issues Shares to Settle Debt
Jun 30, 2025

Sunshine Oilsands Ltd. announced the issuance of shares under a general mandate to settle a debt with a creditor, a corporation wholly owned by Mr. Huang Chen. The creditor and its owner are independent of Sunshine Oilsands and its associates, indicating a strategic move to manage financial obligations without altering existing stakeholder relationships.

Sunshine Oilsands to Issue Shares for Debt Settlement
Jun 25, 2025

Sunshine Oilsands Ltd. has announced the issuance of shares under a general mandate to settle a debt with a creditor. The shares will be issued at HK$0.64, representing a slight discount on the average closing price. This issuance will account for approximately 17.60% of the existing share capital and about 14.97% of the total enlarged issued share capital following completion. The move is part of a settlement agreement and does not require shareholder approval, although the issuance is subject to certain conditions.

Sunshine Oilsands Announces Unanimous Approval of AGM Resolutions
Jun 24, 2025

Sunshine Oilsands Ltd. announced that all resolutions proposed at their annual general meeting were passed unanimously by shareholders. The resolutions included the approval of audited financial statements, fixing the number of directors at seven, and re-electing three directors, indicating strong shareholder support and stability in the company’s governance.

Sunshine Oilsands Shareholders Approve Share Issuance Resolution
Jun 18, 2025

Sunshine Oilsands Ltd. announced that its shareholders have approved a resolution at a special meeting to issue relevant shares under settlement agreements. This decision, passed with a significant majority, empowers the company’s directors to execute necessary actions related to the issuance and allotment of shares, potentially impacting the company’s financial strategies and stakeholder interests.

Sunshine Oilsands Announces 2025 Annual General Meeting
May 23, 2025

Sunshine Oilsands Ltd. has announced its annual general meeting to be held on June 24, 2025, in Hong Kong. The meeting will address several key issues, including the consideration of audited financial statements, election of directors, appointment of an auditor, and granting mandates to the board for share issuance and repurchase. This meeting is significant for stakeholders as it outlines the company’s governance and strategic decisions for the coming year.

Sunshine Oilsands Announces Special Meeting for Share Issuance Approval
May 23, 2025

Sunshine Oilsands Ltd. has announced a special meeting for its shareholders to consider and approve the issuance of relevant shares under settlement agreements. This move is subject to the approval of the Listing Committee of The Stock Exchange of Hong Kong Limited and other conditions. The meeting will address the execution of these agreements and the allotment of shares, which could impact the company’s operations and shareholder value.

Sunshine Oilsands Faces Regulatory Challenge Over Project Maintenance
May 14, 2025

Sunshine Oilsands Ltd. has received an order from the Alberta Energy Regulator requiring the submission of a project abandonment plan due to failure to meet maintenance requirements. The Orphan Well Association is seeking to take over the project, prompting the company to prepare an appeal and stay of the order. Currently, there is no significant adverse impact on the company’s business.

Sunshine Oilsands Reports Q1 2025 Financial Decline Amid Maintenance Challenges
May 14, 2025

Sunshine Oilsands Ltd. reported a significant decline in its financial performance for the first quarter ended March 31, 2025, primarily due to equipment maintenance at its West Ells site. The company experienced a drop in petroleum sales to zero, a net operating loss of CAD 1.7 million, and an operating cash flow loss of CAD 1.9 million, although the net loss attributable to owners decreased to CAD 9.7 million from CAD 22.1 million in the previous year.

Sunshine Oilsands Faces Operational and Financial Challenges Amid Market Volatility
May 14, 2025

Sunshine Oilsands Ltd. has faced challenges in maintaining its operations, with the West Ells project having resumed full operations on April 11, 2022, after a temporary suspension due to market volatility and COVID-19 impacts. Despite significant investments, the company reported no bitumen production or sales in the first quarter of 2025, highlighting ongoing financial and operational difficulties, including the need for additional financing to ensure continued operations and development.

Sunshine Oilsands Eyes Growth with Potential Acquisition
May 8, 2025

Sunshine Oilsands Ltd. has entered into a Memorandum of Understanding for a potential acquisition of equity interest in a wholly-owned subsidiary of Nobao Energy Holding (China) Company Limited. The company has conducted thorough due diligence on the target company and is nearing the completion of its internal processes. This acquisition is expected to provide growth opportunities for Sunshine Oilsands, and the company plans to seek regulatory approval and call a shareholders’ meeting soon.

Sunshine Oilsands Announces Special Shareholder Meeting for Proposed Share Issuance
May 6, 2025

Sunshine Oilsands Ltd. has announced a special meeting of shareholders scheduled for June 17, 2025, in Calgary and June 18, 2025, in Hong Kong. The meeting will address the proposed issuance of shares under a specific mandate to settle debts, with the record date for shareholder eligibility set for May 21, 2025.

Sunshine Oilsands Announces Annual Meeting Date for 2025
Apr 30, 2025

Sunshine Oilsands Ltd. has announced the scheduling of its Annual Meeting for shareholders on June 23, 2025, in Calgary and June 24, 2025, in Hong Kong. The record date for shareholders entitled to receive notice and vote at the meeting is set for May 19, 2025. The announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, as it will provide its annual report and management discussions on its financial performance for the year ended December 31, 2024.

Sunshine Oilsands Shifts to Electronic Corporate Communications
Apr 30, 2025

Sunshine Oilsands Ltd. has adopted electronic dissemination for its corporate communications, replacing printed copies with digital versions available on its website and the HKExnews website. This move is aimed at ensuring timely and efficient communication with shareholders. The company encourages shareholders to provide their email addresses to receive actionable corporate communications electronically. If no email address is provided, the company will continue to send printed copies.

Sunshine Oilsands Adopts Electronic Dissemination for Corporate Communications
Apr 30, 2025

Sunshine Oilsands Ltd. has announced the adoption of electronic dissemination for its corporate communications, including reports, notices, and other documents, which will be available on its website and the HKExnews website. This move aims to streamline communication with shareholders and reduce reliance on printed materials, although shareholders can still request printed copies if desired. The company emphasizes the importance for non-registered shareholders to provide their email addresses to intermediaries to ensure timely receipt of communications.

Sunshine Oilsands to Review Q1 2025 Financial Results
Apr 28, 2025

Sunshine Oilsands Ltd. has announced that its board of directors will hold a meeting on May 13, 2025, to approve and publish the company’s first-quarter results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and potentially impact its market positioning and stakeholder interests.

Sunshine Oilsands to Issue Shares for Debt Settlement
Apr 28, 2025

Sunshine Oilsands Ltd. has announced the issuance of shares under a specific mandate to settle outstanding debts with creditors. The issuance involves 162,310,261 shares, representing a significant portion of the company’s share capital, and is subject to shareholder approval. The shares will be issued at a premium over recent trading prices, indicating a strategic move to strengthen the company’s financial position.

Sunshine Oilsands Clarifies Date in Share Placement Announcement
Apr 17, 2025

Sunshine Oilsands Ltd. issued a clarification regarding a previous announcement about the placing of shares under a general mandate for debt settlement. The company corrected the date of a past announcement from December 18, 2025, to December 18, 2024, advising shareholders and potential investors to exercise caution when dealing with its shares.

Sunshine Oilsands Issues Shares to Settle Debts
Apr 17, 2025

Sunshine Oilsands Ltd. announced the issuance of shares under a general mandate to settle debts with creditors. The shares will be issued at a price of HK$0.35, representing a premium over the recent closing price. This issuance will account for approximately 16.67% of the company’s existing share capital and 14.29% of the total enlarged share capital post-issuance. The move aims to strengthen the company’s financial position by settling outstanding debts, although the issuance is subject to certain conditions being met.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025