The Kosei Securities Co.,Ltd.
8617・Standard Market・Securities & Commodity Futures
Investment & Financial Services (Kosei Securities Co., Ltd. – single segment)
Independent mid-tier securities firm centered on financial instruments business
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating revenue | ¥1,113 million | ¥559 million | ↑ |
| Net operating revenue | ¥1,057 million | ¥542 million | ↑ |
| Operating profit | ¥45 million | -¥522 million | ↑ |
| Ordinary profit | ¥254 million | -¥463 million | ↑ |
| Net income | ¥210 million | -¥466 million | ↑ |
| Fee income | ¥266 million | ¥184 million | ↑ |
| Trading gains/losses | ¥593 million | ¥171 million | ↑ |
| SG&A expenses | ¥1,012 million | ¥1,064 million | ↓ |
| Total assets | ¥22,336 million | ¥21,783 million | ↑ |
| Net assets | ¥16,263 million | ¥15,722 million | ↑ |
| Equity ratio | 72.8% | 72.2% | ↑ |
| Capital adequacy ratio (regulatory) | 875.5% | 864.2% | ↑ |
| Net assets per share | ¥1,721.13 | ¥1,663.81 | ↑ |
| Net income per share | ¥22.28 | -¥49.41 | ↑ |
| Return on equity (ROE) | 1.3% | -3.0% | ↑ |
| Dividend per share | ¥10.00 | ¥5.00 | ↑ |
| Payout ratio | 44.88% | ― | ↑ |
Business Details
A financial instruments business operator whose core activities are the buying and selling of securities, brokerage, underwriting, secondary distribution, and solicitation of public offerings and secondary distributions. The company is built on two pillars: the Consulting division (offering customized asset management proposals to clients) and the Proprietary Trading Business division. In addition, it provides cloud-based core securities systems to other securities firms. Its main customers are domestic individual investors, and it handles a wide range of financial products centered on equities and derivatives. It has one subsidiary, but that subsidiary conducts no substantive business activities.
Recent Overview
Trading gains/losses surged 3.5-fold year on year, achieving a return to profitability for the first time in two periods
In FY2026 (ending March 2026), operating revenue was ¥1,113 million (199.0% year on year), and net income turned positive at ¥210 million, a reversal from a net loss of ¥466 million in the prior period. Trading gains/losses expanded substantially to ¥593 million (347.0% year on year) amid a buoyant stock market, and fee income also increased to ¥266 million (144.8% year on year). SG&A expenses were reduced to ¥1,012 million (95.1% year on year) compared with the prior period. The year-end dividend was increased to ¥10 per share (from ¥5 in the prior period). The capital adequacy ratio (regulatory) improved to 875.5% from 864.2% at the end of the prior period. Earnings and dividend forecasts for FY2027 (ending March 2027) remain undetermined due to uncertainty in the market environment.
Key Products
Growth Drivers
- Substantial expansion of trading gains/losses driven by a buoyant stock market: ¥593 million in FY2026 (ending March 2026) (347.0% year on year), mainly attributable to stock-related trading gains/losses of ¥578 million (348.4% year on year)
- Increase in fee income: brokerage commissions on stocks rose to ¥220 million (145.3% year on year) and commissions from solicitation and secondary distribution handling rose to ¥9 million (1,655.2% year on year), reflecting active brokered trading amid the buoyant stock market
- Increase in financial income: expanded to ¥101 million (180.0% year on year), driven by an increase in deposits received and other factors
- Steady accumulation of revenue from providing core systems to other securities firms: other operating revenue of ¥151 million (102.5% year on year)
- Reduction in SG&A expenses: ¥1,012 million (95.1% year on year), with cost compression centered on personnel expenses of ¥458 million (down from ¥500 million in the prior period)
- Expansion of unrealized gains on investment securities: valuation difference on other securities of ¥1,109 million (up from ¥732 million in the prior period), improving the quality of net assets
Risks
- Risk of fluctuations in financial and capital markets: the securities business is directly exposed to market conditions, carrying the structural risk of a sharp decline in revenue during stock market downturns (the prior period recorded a net loss of ¥466 million)
- U.S. trade policy risk: potential downward pressure on domestic and overseas markets from tariff increases and retaliatory measures may affect business performance (the Nikkei Average softened to the ¥51,000 level toward the fiscal year-end)
- Volatility of trading gains/losses: earnings from the proprietary trading division are heavily influenced by market conditions, and the ¥593 million profit recorded in the current period could change sharply depending on future market conditions
- Risk of rising prices and interest rates: continued interest rate hikes by the Bank of Japan and rising prices could weigh on personal consumption and dampen client investment sentiment
- Middle East situation risk: a global stock market decline triggered by fighting in the Middle East became apparent even at the end of the current period, with geopolitical risk directly affecting earnings
- Management of the capital adequacy ratio level: although 875.5% is well above the statutory standard (120%), attention is needed regarding the increase in market risk equivalent amount (¥888 million, up from ¥775 million in the prior period)
Last updated: June 22, 2026