The Kosei Securities Co.,Ltd.
8617・Standard Market・Securities & Commodity Futures
Business
Kosei Securities Co., Ltd. is an independent securities firm founded in 1961 and listed on the Standard Market of the Tokyo Stock Exchange. Headquartered in Kitahama, Chuo-ku, Osaka, the company operates from two domestic locations, including its Tokyo branch. Its core business is financial instruments trading, centered on brokerage of securities transactions, Proprietary Trading Business, and underwriting and secondary distribution, in addition to a systems business that provides cloud-based core securities systems to other securities firms. The customer base consists mainly of individual investors, to whom the company offers customized asset management consulting combining derivatives. It has one subsidiary (Kameyama Shachu Co., Ltd.), but this subsidiary conducts no substantial business activities.
Business Model
Revenue is composed of three main pillars: ① commissions received from customers for stock and derivatives brokerage transactions (¥266 million in FY2026 (ending March 2026)), ② gains/losses from proprietary stock and derivatives trading (¥593 million for the same period), and ③ revenue from providing a cloud-based core securities system to other securities companies (other operating revenue of ¥151 million). On the cost side, selling, general and administrative expenses of ¥1,012 million represent the primary cost, and the company continues to manage costs, including reductions in personnel expenses. The company maintains a financial policy of operating with internal funds without relying on external fundraising.
Company Strengths
At the end of FY2026 (ending March 2026), the capital adequacy ratio for regulatory purposes stood at 875.5% (864.2% in the previous period), substantially exceeding the statutory standard. Net assets totaled ¥16,263 million, with an equity ratio of 72.8%. The company maintains a policy of internal fund management without reliance on external borrowing, holding cash and cash equivalents of ¥3,965 million. This high degree of financial soundness forms the basis of trust as an independent securities company.
The Core Securities System Provision (Cloud Services) business, launched in November 2014 for other securities companies, covers equities, ETFs, REITs, bonds, and investment trusts, as well as commodity derivatives listed on the Osaka Exchange. In FY2026 (ending March 2026), other operating revenue from this business reached ¥151 million (102.5% year on year), accumulating steadily as a revenue source less susceptible to market fluctuations.
The company advocates a "tailor-made" support approach tailored to each individual investor's life plan and risk tolerance, offering asset management proposals that combine derivatives such as individual stock options. It has a track record of strengthening its consulting capabilities through the phased expansion of products handled, including the start of internet trading for all Osaka Exchange derivative products in April 2014 and the commencement of commodity futures handling in July 2020.
ENVALITH's Perspective
Performance Trend
Operating revenue over the past five fiscal years has fluctuated significantly in line with market conditions: ¥448 million in FY2022 → ¥436 million in FY2023 → ¥1,498 million in FY2024 → ¥559 million in FY2025 → ¥1,113 million in FY2026. In FY2026 (ending March 2026), operating revenue rose 99.0% year on year to ¥1,113 million, operating profit came to ¥45 million (versus a loss of ¥522 million in the prior period), and net income attributable to owners of the parent came to ¥210 million (versus a loss of ¥466 million in the prior period), marking a turnaround to profitability. As an external factor, buoyant stock market conditions—with the Nikkei Average renewing its all-time high (reaching roughly the ¥58,000 level)—pushed up trading gains and losses (¥593 million, up 347.0% year on year). On the other hand, share prices softened toward the ¥51,000 level toward the end of the period amid factors such as the situation in the Middle East, and market conditions in FY2027 (ending March 2027) will be key to performance. ROE improved to 1.3% (versus △3.0% in the prior period), but the absolute level remains low.
Growth Strategy
Strengthening the three business pillars of consulting, trading, and systems, while promoting customer-centric wealth management
Promoting the presentation of sound financial products tailored to customers' life plans and risk tolerance levels, and asset management proposals combining derivatives such as individual stock options. In FY2026 (ending March 2026), amid a buoyant stock market, brokerage trading activity increased, with net operating revenue of ¥266 million (144.8% year-on-year). Stock brokerage commissions of ¥220 million (145.3% year-on-year) drove this growth.
Continuing proprietary trading with thorough risk management over stocks and derivatives. In FY2026 (ending March 2026), trading gains expanded significantly to ¥593 million (347.0% year-on-year). However, dependence on market conditions remains high, and diversifying methods to achieve stabilization remains an ongoing challenge.
Securing stable revenue through the provision of the cloud-based core system to other securities companies. In FY2026 (ending March 2026), other operating revenue accumulated steadily at ¥151 million (102.5% year-on-year), functioning as a revenue base unaffected by market fluctuations.
Last updated: July 19, 2026