Executive Summary
On May 11, 2026, Envalith secured a post-full-year earnings interview with Satoshi Warita, President and CEO of Matsui Securities. As the only independent firm among the five major online brokers, Matsui Securities has sharpened its strategic positioning by targeting traders who actively 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 has identified the following as the next pillars of growth: maximizing LTV through optimized customer acquisition costs, expanding net financial income amid a rising rate environment, and diversifying revenue streams through the broadening of product offerings 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 needed to support margin trading growth.
Message from the Company
We want to dispel the notion that you cannot survive in the online brokerage industry unless you follow the same model as SBI and Rakuten. Our strategy of focusing on active investors is working.
Key Discussion Points
Establishing a Strategic Position Targeting Active Investors as the Core Segment
While the other four major online brokers all operate under conglomerates with 10M+ customer bases and pursue a mass-market approach, Matsui Securities focuses on traders who actively engage in investing. Among new account holders, the FX account opening rate is 43%, margin trading 25%, and futures & options 12% — significantly higher than the four competitors. Management emphasized that this enables efficient acquisition of customers who are actively engaged in investing and deliver high revenue contribution per account.
Optimizing Customer Acquisition Costs and Pivoting Toward LTV Maximization
For customer acquisition cost (CAC), the company has set a payback period benchmark of two years. In the most recent fiscal year, the payback rate improved substantially as the firm efficiently acquired high-revenue-contribution customers. Going forward, management indicated a willingness to accept modestly higher CAC to prioritize volume growth, seeking the optimal point that maximizes the absolute LTV.
Structural Expansion of Net Financial Income Leveraging a 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 would generate an estimated net annualized revenue uplift of approximately JPY 650M. The company has a structural earnings profile in which net financial income expands during tightening cycles.
Envalith's Perspectives
Q&A Highlights
- Q
Could the increase in the dividend payout ratio to 70%+ impair the capital accumulation needed to support margin trading expansion?
AThe actual payout ratio over the past 10 years has already been maintained above 70%, making this change a formalization of existing practice. The company believes sufficient capital accumulation to support the margin trading business is achievable even while maintaining a high payout ratio, and that even the current period's approximately 83% level poses no concern. From a free float perspective, the company intends to continue prioritizing dividends over share buybacks as its primary form of shareholder returns.
- Q
How does the company think about CAC and payback in the context of rising advertising expenses?
AWhile the company is mindful of the approximately two-year CAC payback benchmark, the payback rate has improved significantly in the most recent period. Going forward, the plan is to modestly increase CAC to drive higher 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 contribution is expected to be positive.
- 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 would generate an estimated net annualized revenue uplift of approximately JPY 650M. Customer deposits are invested in three-month rolling time deposits, where a 25bp rate hike translates to approximately a 20bp increase in investment yield. On the borrowing side, funding is predominantly via call money, which rises roughly in line with the policy rate.
- Q
What is the objective of 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 during designated core hours, the company can consistently run low-spread advertisements — something that was previously difficult due to regulatory constraints that occasionally forced ad withdrawals. The significance lies more in eliminating a negative factor than in creating a new positive one. Trading volume itself remains predominantly driven by market events.
- Q
What drove the equity trading value share increase to 9% in Q4, and what are the factors behind shifts in margin balance share?
AThe precise drivers of the trading share increase will be analyzed once peer data becomes fully available. Historically, the company's share tends to decline during periods of high market activity, so this uptick diverges from past patterns and is being closely monitored. The outstanding margin long balance share recovered to 8% on an end-of-period basis. During the first half, the Trump tariff-induced equity sell-off led to mark-to-market loss realization by clients, making it difficult for balances to build, but a sharp recovery occurred in Q4.
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