The Imamura Securities Co.,Ltd.

Business Details

Imamura Securities is a regionally focused, face-to-face securities firm operating primarily in Ishikawa Prefecture. With individual investors as its primary customer base, the company provides a wide range of investment and financial services, from asset management to fundraising, centered on brokerage and sales of stocks, bonds, and investment trusts. Its differentiation stems from providing high-quality investment information through proprietary publications such as "Joho Shuttle Tokkyubin" and "Imamura Report," as well as reports from specialized research institutions. The business consists of a single segment: Investment & Financial Services.

Recent Overview

Boosted by rising stock markets, commissions received grew 30.1% and ordinary profit surged 44.1%

In FY2026 (ending March 2026), firm domestic and overseas stock market conditions drove stock brokerage commissions up 34.0% to ¥3,607 million and beneficiary certificate commissions up 20.5% to ¥1,096 million, expanding the company's main revenue sources. On the other hand, due to the impact of U.S. trade policy, gains/losses from trading USD-denominated corporate bonds plunged 95.6% to ¥19 million. Selling, general and administrative expenses rose only 9.1% to ¥3,474 million, while operating profit increased 42.7% to ¥1,407 million. Assets under custody in investment trusts reached a new record high of ¥106,647 million. During the current period, the company implemented four new initiatives: the "Family Support Securities Account," the "iPortal" smartphone app, "passkey authentication," and the renewal of the Yayoi Branch.

Key Products

Growth Drivers

• Increase in stock brokerage commissions driven by an upward trend in the domestic stock market (up 34.0% year on year in the current period)
• Increase in beneficiary certificate commissions due to the expansion of investment trust assets under custody (¥106,647 million at period-end, up 38.6% from the prior year-end)
• Growing awareness of asset formation among individual investors and expansion of the customer base, driven by the spread of the NISA program
• Continued acquisition of new accounts (3,897 accounts acquired in the current period), expanding the customer base
• Deepening engagement with customer segments through expanded services for elderly customers, such as the "Family Support Securities Account"
• Strengthened customer engagement through improved digital convenience, including the iPortal smartphone app and introduction of passkey authentication
• Stabilization of the recurring revenue base through an improved expense coverage ratio from beneficiary certificates (31.7%)

Risks

• Risk of significant fluctuations in brokerage commission revenue due to volatility in stock market conditions (revenue and profit could decline as in the prior fiscal year if market conditions worsen)
• Risk of a sharp decline in trading gains/losses from USD-denominated corporate bonds and other instruments due to geopolitical risks such as U.S. trade policy (in the current period, trading gains/losses plunged 95.6% year on year to ¥19 million)
• Intensifying competition due to fee reductions and the move toward free trading by online securities firms
• Rising funding costs and changes in customer investment behavior due to interest rate hikes by the Bank of Japan (raised to 0.75% in the current period)
• Risk of a sharp stock market decline due to geopolitical risks such as tensions in the Middle East and U.S.-China relations (the Nikkei average recorded its largest-ever monthly decline in March of the current period)
• Increased costs to address risks of unauthorized access and fraudulent transactions targeting online trading accounts
• Decline in the capital adequacy ratio from 61.4% to 49.6% due to the expansion of total assets accompanying an increase in customer deposits