Investment Rating - The report suggests a positive outlook for C-end stock trading software companies and recommends focusing on companies like Zhinancai and Jiufang Zhituo Holdings, while also highlighting the potential recovery in IT investments for securities firms and banks, recommending attention to companies such as Hengsheng Electronics, Dingdian Software, and Yuxin Technology [1]. 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 decrease in revenue for listed banking IT companies [24][26]. - The financial IT companies are expected to leverage new growth drivers such as domestic innovation (Xinchang), AI, and international expansion in 2025 [1][32]. Summary by Sections 1. Capital Market IT Performance - In 2024, the total revenue of 150 securities firms reached 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]. - The average daily trading volume of A-shares was 1,063.4 billion yuan, reflecting a significant improvement in trading activity [9]. - C-end capital market IT companies performed well, with revenue growth exceeding 15% for companies like Zhinancai and Tonghuashun, while B-end companies faced revenue declines [22][23]. 2. Banking IT Sector Overview - The total revenue of 19 listed banking IT companies in 2024 was 67.459 billion yuan, down 4.55% year-on-year, indicating a slowdown in revenue growth [26][30]. - The overall IT investment from the six major state-owned banks slightly decreased to 124 billion yuan, with a year-on-year decline of 0.15% [25][24]. - The number of IT personnel in banking IT companies increased by 3.7% to 168,109, but revenue per employee decreased by 7.35% [27][30]. 3. Growth Drivers for Financial IT Companies - Financial IT companies are actively exploring growth opportunities in domestic innovation, AI, and international markets, with expectations for significant demand growth in 2025 [1][32]. - The report identifies three categories of AI deployment: providing integrated machines for rapid model deployment, enhancing existing product lines with AI capabilities, and developing code assistants to improve efficiency [38][39]. - The report highlights the ongoing progress in domestic innovation projects, with several companies achieving significant milestones in adapting their products to meet domestic standards [36][37].