ENVALITH
水戸証券株式会社 logo

Mito Securities Co., Ltd.

8622・Prime Market・Securities & Commodity Futures

Official website
水戸証券株式会社 logo
Mito Securities Co., Ltd.8622

Business

Mito Securities was founded in 1921 and originated in Mito City, Ibaraki Prefecture, as an independent securities firm. With a business base spanning the greater Kanto region centered on Northern Kanto, it operates a financial instruments business encompassing the sale, brokerage, underwriting, and solicitation handling of securities as a single segment. Its primary customers are face-to-face channel clients, mainly affluent individuals and the elderly, and it supports clients' overall life plans across three pillars: asset formation (fuyasu), asset preservation (mamoru), and asset succession (tsunagu). The company is listed on the Prime Market of the Tokyo Stock Exchange. In 2022, it relocated its head office to Koishikawa, Bunkyo-ku, Tokyo, strengthening its business continuity framework.

Business Model

In addition to flow revenue such as brokerage commissions and investment trust sales commissions, the company builds up stock revenue centered on investment trust agency fees and Fund Wrap fees, forming a revenue structure with layered accumulation. In FY2026 (ending March 2026), stock revenue reached ¥5,859 million, and the SG&A coverage ratio recorded a record-high 45.6%. The expansion of assets under custody is a structural factor that enhances the stability of revenue.

Company Strengths

Total assets under custody as of the end of March 2026 stood at ¥1,784.6 billion, of which equity investment trusts and Mito Fund Wrap combined (stock assets) totaled ¥643.9 billion, both representing all-time highs for the company. Stock revenue of ¥5,859 million is functioning as a stable earnings base, and the shift toward a balance-accumulation-type business model is progressing steadily.

The number of holders of the company's own advanced certifications, such as CFP and the Securities Analyst Level 2 exam, reached 72 as of the end of March 2026, the highest since the management vision was announced in 2015. In addition, the company has been certified as an "Excellent Enterprise of Health and Productivity Management (Large Enterprise Category)" for six consecutive years, with the quality and retention of personnel underpinning the competitiveness of its face-to-face sales.

The company is promoting relationship-building with the next generation through the introduction of the "Inheritance Beneficiary Designation Service" and enhanced individual consultation arrangements involving family members. It has also implemented community-oriented measures to expand its customer base, including 96 financial education outreach lectures held within Ibaraki Prefecture (with a cumulative 2,781 participants) and the establishment of a new shareholder benefit program (March 2026).

ENVALITH's Perspective

In FY2026 (ending March 2026), operating revenue reached ¥16,074 million (up ¥2,091 million year on year), operating profit reached ¥3,146 million (up ¥1,288 million year on year), and net income attributable to owners of parent reached ¥3,095 million (up ¥675 million year on year), marking the highest levels in the past five fiscal periods. While the buoyant domestic equity market as an external factor boosted flow income, the accumulation of stock income also contributed, and the improvement in the earnings structure is reflected in these figures.

As demonstrated by the operating loss (-¥268 million) recorded in FY2023 (ending March 2023), the risk of a sharp decline in flow income during downturns in equity market conditions remains. The strong performance in FY2026 owes much to favorable external market conditions, and the extent to which the ratio of stock income has increased will be a key indicator in assessing the sustainability of earnings stability going forward. Continued monitoring of resilience to future changes in market conditions is necessary.

On June 18, 2026, an aggregation error was found in the notes to the financial statements (accumulated depreciation of property, plant and equipment) in the FY2026 (ending March 2026) financial results summary, and a correction was made. The correction involves revisions to fixtures and equipment (from ¥894 million to ¥892 million), net lease assets (from ¥27 million to ¥8 million), and the total (from ¥5,204 million to ¥5,183 million), with no impact on profit/loss or net assets. However, the fact that the correction was announced approximately two months after disclosure is a point warranting attention, as it suggests a need for improved precision in internal control processes.

Growth Strategy

Transition to a stock-revenue-based model and sustainable growth through digitalization and expanded asset succession services

Fund Wrap assets under management have been built up to their highest level since 2015, driving a shift toward a stable, revenue-oriented business model centered on Investment Trust Sales & Agency fees and Fund Wrap fees. This is expected to strengthen resilience against market fluctuations.

The company has introduced the Inheritance Beneficiary Designation Service to encourage long-term, continuous transactions with affluent and elderly clients. By managing client assets across generations, it aims to reduce cancellation risk and maintain/expand assets under management over the long term.

Centered on the Digitalization Promotion Office established in April 2023, the company is promoting operational efficiency through tablet utilization and RPA implementation, among other measures. This is expected to contribute to improved profitability through cost reduction and enhanced sales productivity.

The head office relocation has achieved recurring cost reductions while also strengthening the BCP (business continuity plan) framework. This is positioned as a measure that contributes to margin improvement through reduced fixed costs.

Last updated: July 19, 2026