Marusan Securities Co., Ltd.

Business Details

Operates a financial instruments business including securities trading and brokerage intermediation, underwriting, and offering/distribution handling. The core revenue pillars are commissions received from equities and investment trusts and trust fees, providing stock selection, information provision, and asset management proposals to individual investors. In April 2025, the company absorbed its subsidiary Marusan Finance Co., Ltd., transitioning to a non-consolidated structure. Placing "moving away from dependence on trading commissions toward balance-linked fee income" at the core of its medium-term management plan, the company launched its proprietary fund wrap service in July 2025.

Recent Overview

Stock brokerage commissions rose 36%, trust fees also increased, and ordinary profit surged 44%

In FY2026 (ending March 2026), against the backdrop of a bull market in which the Nikkei Average surpassed ¥50,000 during the period, stock-related commissions received rose sharply to ¥7,298 million (up 36.3% year on year). The investment trust balance also expanded to ¥1,210,400 million, up 19.6% from the end of the prior period, increasing trust fee income. Operating profit reached ¥5,375 million (up 51.0% year on year), and ordinary profit reached ¥5,923 million (up 44.0% year on year). The Marusan Fund Wrap Service, launched in July 2025, has begun functioning as a new asset acquisition channel. Under the medium-term management plan, the net increase in Japanese equities (24-month period) achieved a 130.8% achievement rate, and the net increase in equity investment trusts achieved a 121.9% achievement rate, substantially exceeding the plan.

Key Products

Growth Drivers

• A sharp increase in brokerage commissions (up 36.3% year on year) driven by the stock market rally (the Nikkei Average surpassed ¥50,000 during the period, closing the period at ¥51,063)
• Stable growth in trust fee income (¥8,440 million, up 10.8% year on year) through accumulation of the investment trust balance, and achievement of a 51.7% SG&A expense coverage ratio from trust fees
• Expansion of the underwriting business and diversification of commission income through underwriting shares for 19 newly listed companies
• Efforts to establish a balance-linked fee revenue structure through the Marusan Fund Wrap Service launched in July 2025
• Progress exceeding the medium-term management plan targets, with a 130.8% achievement rate for net increase in Japanese equities and a 121.9% achievement rate for net increase in equity investment trusts
• Integration of management resources and transition to a non-consolidated structure through the absorption merger of Marusan Finance Co., Ltd. (April 2025)

Risks

• Significant fluctuations in earnings due to volatility in the stock and bond markets (a primary reason for not disclosing earnings forecasts)
• Risk of bond price declines and deterioration in trading gains/losses amid rising interest rates (long-term interest rates rose to 2.355% by period-end)
• Downside risk to the Japanese stock market due to uncertainty over U.S. trade policy (reciprocal tariffs) and escalating tensions in the Middle East
• Risk of decreased trust fee income due to a decline in the investment trust balance (from falling net asset values, distribution payouts, etc.)
• Close monitoring of financial soundness amid a declining trend in the capital adequacy ratio (from 626.4% at the end of the prior period to 576.9% at the end of the current period)
• Investor attention to the ability to maintain dividends during a downturn in performance, given the high dividend payout ratio of 92.5%