Investment Rating - The report suggests a positive outlook for C-end stock trading software companies and recommends focusing on companies like Zhina Zhen and Jiufang Zhitu Holdings, while also highlighting the potential recovery of IT investments in securities firms and banks, recommending attention to companies such as Hengsheng Electronics, Top Point Software, and Yuxin Technology [1][3]. Core Viewpoints - The capital market IT sector showed signs of recovery in 2024, with a notable increase in A-share average daily trading volume by 21.2% year-on-year, leading to improved trading sentiment and revenue growth for C-end trading software companies [9][11]. - The banking IT sector faced challenges, with a decline in financial technology investments from major state-owned banks and a drop in revenue for listed banking IT companies [24][26]. - The report identifies three main growth drivers for financial IT companies in 2025: Xinchuang (domestic innovation), AI, and international expansion [1][3]. Summary by Sections 1. Capital Market IT Performance - In 2024, 150 securities firms achieved a total revenue of 451.2 billion yuan, a year-on-year increase of 11.2%, with net profit rising by 21.3% to 167.3 billion yuan [9][11]. - C-end capital market IT companies performed well, with total revenue of 23.58 billion yuan, although B-end companies faced revenue declines [22][23]. - The overall revenue for 10 capital market IT companies decreased by 3.3% year-on-year, while net profit fell by 28.7% [22][23]. 2. Banking IT Sector - The total revenue for 19 banking IT companies in 2024 was 67.459 billion yuan, down 4.55% year-on-year, with a decline in net profit by 47.61% [30][26]. - The report notes a slowdown in IT investment growth among major state-owned banks, with total financial technology investment at 124 billion yuan, a slight decrease of 0.15% [25][26]. - The number of banking IT employees increased by 3.66% to 168,109, but revenue per employee decreased by 7.35% [27][30]. 3. Growth Drivers for 2025 - Financial IT companies are actively exploring growth points in Xinchuang, AI, and international markets, with a positive outlook for the first quarter of 2025 [1][3]. - The report anticipates that 2025 will be a pivotal year for AI commercialization, with financial IT companies focusing on integrating AI capabilities into existing products [38][39]. - Companies like Yuxin Technology and Tianyang Technology are developing integrated AI solutions to enhance operational efficiency and customer engagement [38][39].