HS Holdings Co., Ltd.
8699・Standard Market・Securities & Commodity Futures
Business
HS Holdings is composed of three segments: the Banking Business, which operates in three countries—Mongolia, Kyrgyzstan, and Russia; the Reuse Business, centered on STAYGOLD and focused primarily on the domestic reuse market; and the Investment Business/M&A Brokerage business operated directly by the holding company. In the Banking Business, the performance of equity-method affiliates Khan Bank JSC (one of Mongolia's largest commercial banks) and Solid Bank (JSC Solid Bank) (Russia) contributes significantly to consolidated results through equity-method investment gains. In the Reuse Business, PRICING DATA was absorbed via merger in August 2025, and the company is integrating Auction Sales, wholesale, retail, and overseas expansion in a unified manner. The group consists of 5 consolidated subsidiaries and 4 equity-method affiliates, and is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The primary source of earnings is equity-method investment income from equity-method affiliates (Khan Bank JSC and Solid Bank (JSC Solid Bank)) (¥16,411 million in FY2026 (ending March 2026)), supplemented by dividends from affiliated companies received by the holding company itself. In the Reuse Business, sales revenue of ¥55,251 million was recorded through buying/selling of used goods, Auction Sales, Wholesale (Domestic & Overseas), and Store Retail & E-Commerce Sales. Capital expenditure is mainly limited to new store openings for STAYGOLD (¥565 million), with the asset-efficient equity-method model forming a stable earnings foundation.
Company Strengths
Equity in earnings of affiliates recorded ¥16,411 million in FY2026 (ending March 2026), an increase of ¥964 million year on year, continuing its expansion trend. Khan Bank JSC, one of Mongolia's largest commercial banks, maintained growth in both revenue and profit, with loan balances up 20.9% and fund management income up 15.0% versus the prior fiscal year-end, making it the revenue source underpinning the majority of the Group's consolidated ordinary income of ¥17,713 million.
In April 2025, PRICING DATA was made a wholly owned subsidiary, and in August of the same year it was absorbed into STAYGOLD through a merger. The merger improved gross profit margins across all Auction Sales categories and established a centralized inventory information management system. Reuse Business net sales reached ¥55,251 million, an increase of ¥20,405 million year on year, with STAYGOLD alone recording operating profit of nearly ¥1.5 billion.
While the mid-term management target calls for maintaining a stable consolidated ROE of 10% or higher, ROE for FY2026 (ending March 2026) reached 15.8%. The combination of a highly capital-efficient business model centered on equity-method income and increased revenue and profit in the Reuse Business has kept profitability relative to shareholders' equity well above the target level.
ENVALITH's Perspective
Performance Trend
Operating revenue for FY2026 (ending March 2026) rose sharply to ¥57,879 million (up 53.3% year on year), primarily driven by the rapid expansion of Reuse Business sales (¥55,263 million, up 58.6% year on year) following the merger with PRICING DATA. Ordinary income increased to ¥17,713 million (up 17.1% year on year), and net income attributable to owners of the parent rose to ¥14,688 million (up 21.4% year on year), reflecting increased revenue and profit. External tailwinds included strong growth in the Mongolian economy (real GDP up 6.8% year on year), a surge in precious metal prices, and expansion of Khan Bank JSC's loan balance. On the other hand, operating loss remained at ¥363 million (an improvement from ¥1,106 million in the prior period). Operating cash flow decreased to ¥2,176 million (down from ¥4,532 million in the prior period), affected by an increase in inventories and higher corporate tax payments. Net assets per share steadily increased to ¥3,325.93 (from ¥2,869.94 in the prior period).
Growth Strategy
Addressing the Khan Bank JSC equity stake issue while cultivating new revenue sources through the Reuse Business and overseas investment
Ahead of the deadline (end of December 2026) to reduce the shareholding ratio to 20% or less under the revised Mongolian Banking Law, it is an urgent priority to implement measures that minimize the impact on consolidated results following the reduction in the equity stake. Maintaining status as an equity-method affiliate is a precondition.
Following the merger with PRICING DATA, the group is promoting integrated operations, optimizing inventory efficiency, improving auction profitability, and strengthening the retail segment (new store openings under the BRING brand). Operating profit of ¥617 million was recorded in FY2026 (ending March 2026), achieving profitability. A test of overseas expansion in Thailand has also begun.
Expansion of overseas investment and M&A Brokerage & Consulting Business through HS Holdings itself and its Singapore subsidiary, HS FINANCIAL Pte. Ltd. (Overseas Investment Hub). Operating profit in Other Businesses expanded to ¥6,716 million (up ¥1,144 million year on year), aided by an increase in dividend income from affiliated companies.
Solid Bank's performance improved significantly on expanded non-interest income such as foreign exchange transactions. Kyrgyzkommertsbank is focusing on retail lending, cards, and online payments to strengthen its revenue base, but posted a substantial loss on a local currency basis due to additional provisioning. Strengthening risk management remains an ongoing challenge.
Last updated: July 19, 2026