MATSUI SECURITIES CO.,LTD.

Business Details

Matsui Securities' core business is stock brokerage for individual investors, offering online securities trading services including Stock, Futures & Options Brokerage Trading, investment trust sales, FX (Foreign Exchange Margin Trading), and US Stock Trading. Revenue is built on three pillars: brokerage commissions, financial income and expenses, and FX trading gains/losses. Under the slogan "Make investing serious, and fun," the company aims to deliver customer experience value that combines a stable trading environment with intellectual entertainment value. As the only independent company among the five major online securities firms, it targets customers who actively engage in investing as its core target.

Recent Overview

For full year FY2026 (ending March 2026), all major profit and loss items saw substantial increases, with ROE rising to 19.6%

For full year FY2026 (ending March 2026), operating revenue was ¥52,660 million (up 34.3% year on year), operating profit was ¥23,462 million (up 50.1%), and net income for the period was ¥15,480 million (up 47.4%), representing substantial profit growth. Total individual stock brokerage trading value across the two markets increased 37% year on year, driving a 31.3% increase in brokerage commissions; financial income and expenses grew 29.0% on higher interest income from deposits amid rising interest rates; and FX trading gains/losses increased 55.1%, with all three pillars expanding together. On the other hand, the company recorded ¥375 million in customer compensation costs related to fraudulent transactions caused by phishing scams and malware damage as an extraordinary loss. Starting from the next fiscal year, the dividend policy criteria will change from a payout ratio of 60% or higher to abolishing DOE and adopting a payout ratio of 70% or higher.

Key Products

Growth Drivers

• Increased trading activity among individual investors amid the Nikkei Average hitting a record high (¥58,583), with total individual stock brokerage trading value across the two markets up 37% year on year and the company's own value up 35%
• Expansion of financial income and expenses due to increased profit distributions on deposits amid rising interest rate levels (full year FY2026, ending March 2026: ¥17,306 million, up 29.0% year on year)
• Substantial increase in FX trading gains/losses (full year FY2026, ending March 2026: ¥5,819 million, up 55.1% year on year)
• Expansion of the individual investor base and tailwinds for the online securities industry driven by the new NISA program
• Expansion of the customer base through brand awareness initiatives, including a new commercial featuring Arisu Hirose, a sponsorship contract with professional esports team FENNEL, and an official YouTube channel with over 790,000 subscribers
• Enhancement of the product and service lineup, including the launch of the credit card investment accumulation service, improved MATSUI Bank interest rates, expansion of FX currency pairs (to 32 pairs), and support for US stock pre-market trading
• Expansion of IPO-related revenue through a 69% IPO underwriting participation rate and the industry's second-largest handling volume
• Continued inflow of stock assets from face-to-face securities firms to online securities firms

Risks

• Difficulty in disclosing earnings forecasts because performance is heavily dependent on stock market conditions (most revenue consists of brokerage commissions, financial income and expenses, and trading gains/losses)
• Occurrence of customer compensation costs due to unauthorized access to customer accounts resulting from phishing scams and malware damage (¥375 million in compensation payments recorded as an extraordinary loss for full year FY2026, ending March 2026)
• Cybersecurity risk (increased costs to address unauthorized access and cyberattacks, and temporary decline in customer service quality due to mandatory multi-factor authentication)
• Need to respond to changes in the revenue structure due to competitors (SBI SECURITIES, Rakuten Securities, etc.) eliminating stock brokerage commissions, and the necessity of diversifying revenue sources
• Risk of declining commission rates due to an increasing proportion of one-day margin trading usage (in principle commission-free)
• Risk of rising funding costs and credit risk in the event of a sharp market shift, due to a substantial increase in margin lending (up 27.1% year on year to ¥423,617 million)
• As the only independent company among the five major online securities firms, a gap in customer base and management resource scale compared with companies under conglomerate umbrellas