Open Source Securities: Recommending undervalued leading securities firms, bullish on small and medium-sized securities firms with significant retail advantages and high performance elasticity.

Open Source Securities released a research report recommending undervalued top securities firms, bullish on medium and small securities firms with outstanding retail advantages and high performance flexibility. Recently, the second phase of the SFISF exchange facilitation bidding was completed, bringing incremental funds to the market. The top management has set the tone of "stabilizing the real estate and stock markets," focusing on the policy measures to promote the entry of medium- to long-term funds into the market. Currently, the enthusiasm of individual investors to enter the market remains high, and the market trading activity is expected to maintain a high level. The trading volume center is expected to increase, benefiting the improvement of the fundamentals of securities firms. Event: The Shanghai Stock Exchange disclosed that the number of A-share new accounts in December 2024 was 1.989 million, a decrease of 26% month-on-month and an increase of 75% year-on-year. The total number of new accounts in 2024 was 25 million, an increase of 17% year-on-year. Dongxing disclosed a performance forecast on January 7th, expecting a year-on-year increase in net profit attributable to owners of 77% to 107% in 2024. The main points of Open Source Securities are as follows: -The month-on-month decline in the number of new accounts in December is high year-on-year, focusing on the increase in market trading volume and turnover rate. -The traditional securities firms have yet to fully reflect the improvement in profitability, and attention is on the catalyst of January's performance forecast announcement. Recommendations include undervalued top securities firms and bullish on medium and small securities firms with outstanding retail advantages and high performance flexibility. Risk warning: Stock market volatility affects industry self-operated investment income; the sustainability of high trading volume driven by individual investors is uncertain.