Executive Summary
On May 11, 2026, Envalith secured a post-full-year earnings interview with Satoshi Warita, Representative Director, President & CEO. Matsui Securities, the only independent firm among the five major online brokers, has sharpened its strategic positioning by targeting active traders who proactively engage in investing. In FY2026/3, operating income surged +50.1% YoY to JPY 23.4B with ROE of 19.6%, demonstrating that this strategy is delivering tangible results. Management identified the following as the next pillars of growth: maximizing LTV through optimization of customer acquisition costs, expanding net financial income amid a rising rate environment, and diversifying revenue streams through product lineup expansion including CFDs. The increase in the dividend payout ratio floor to 70%+ was characterized as a formalization of existing practice, and management expressed confidence in balancing a high level of shareholder returns with the capital accumulation necessary for margin trading expansion.
Message from the Company
We want to dispel the notion that you cannot survive in the online brokerage industry unless you adopt the same model as SBI or Rakuten. Our strategy of targeting active investors is working.
Key Discussion Points
Establishing Strategic Positioning Centered on Active Investors as the Core Target
While the other four major online brokers all operate under conglomerates with 10M+ customer bases and pursue the mass market, Matsui Securities focuses on active traders who proactively engage in investing. Among new account holders, the FX account opening rate stands at 43%, margin trading at 25%, and futures & options at 12% — markedly higher than the four competitors. Management emphasized the firm's ability to efficiently acquire customers who are actively engaged in investing and contribute meaningfully to revenue.
Optimizing Customer Acquisition Costs and Pivoting to LTV Maximization
Regarding customer acquisition costs (CAC), the company has established a payback period benchmark. In the most recent period, it efficiently acquired high-revenue-contributing customers, resulting in a significant improvement in the payback rate. Going forward, management indicated a strategy of prioritizing volume growth — even at a slightly higher CAC — to find the optimal point that maximizes the absolute LTV.
Structural Expansion of Net Financial Income Leveraging the Rising Rate Environment
Based on assumptions of approximately JPY 700B in customer deposit investments and approximately JPY 300B in margin-trading-related borrowings, each 25bp policy rate hike translates to approximately JPY 650M in net incremental annual revenue. The company's earnings structure is one where net financial income expands structurally in a rate-hiking cycle.
Envalith's Perspectives
Q&A Highlights
- Q
Could the increase in dividend payout ratio to 70%+ impede capital accumulation necessary for margin trading expansion?
AThe actual payout ratio over the past 10 years has already been maintained above 70%, so this change simply aligns the stated policy with existing practice. Management believes sufficient capital accumulation to support the margin trading business is achievable even while maintaining a high payout ratio, and sees no issue even at the current level of approximately 83%. From a free float perspective, the company intends to continue prioritizing dividends over share buybacks as the primary means of shareholder returns.
- Q
How does the company view CAC and payback in light of rising advertising expenses?
AWhile maintaining awareness of a certain CAC payback period benchmark, the payback rate has improved significantly in the most recent period. Going forward, the plan is to modestly raise CAC to increase acquisition volumes, seeking the optimal point where absolute revenue expands even if the payback rate declines somewhat. Cost efficiency is expected to deteriorate slightly in FY2027/3, but on an LTV basis, the absolute value is projected to be accretive.
- Q
What would be the net impact on financial income if the BOJ implements additional rate hikes?
ABased on assumptions of approximately JPY 700B in customer deposit investments and approximately JPY 300B in margin-trading-related borrowings, each 25bp policy rate hike translates to approximately JPY 650M in net incremental annual revenue. Customer deposits are invested in 3-month rolling time deposits, where a 25bp rate hike translates to roughly a 20bp increase in investment yield. On the borrowing side, funding is almost entirely via call money, which rises approximately in line with the policy rate.
- Q
What is the rationale behind introducing core-time pricing in FX, and what has been the initial impact?
AThe primary objective is to improve advertising effectiveness. By maintaining tight spreads only during core hours, the company can consistently run low-spread advertising. This is expected to contribute to increased new account acquisitions going forward. Previously, there were instances where ads had to be pulled due to regulatory compliance issues, so this is more about eliminating a negative factor. Trading volumes themselves remain predominantly driven by market events.
- Q
What drove the increase in equity trading value market share to 9% in Q4, and what factors caused fluctuations in margin balance share?
AThe precise drivers behind the trading share increase will be analyzed once data from all peers becomes available. Typically, the company's share tends to decline during periods of heightened market activity, so this increase deviates from historical patterns and warrants close monitoring. Margin long balance share recovered to 8% on a quarter-end basis. During the first half, margin balances were slow to build as customers realized losses due to Trump tariff-driven stock price declines, but a sharp recovery materialized in Q4.
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