ENVALITH
丸八証券株式会社 logo

Maruhachi Securities Co., Ltd.

8700・Standard Market・Securities & Commodity Futures

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丸八証券株式会社 logo
Maruhachi Securities Co., Ltd.8700

Business

Maruhachi Securities Co., Ltd. was established in 1944 and is headquartered in Nagoya, operating as a face-to-face, community-focused securities company rooted in Aichi Prefecture. The company conducts its business under a single segment of "Investment & Financial Services (Maruhachi Securities single segment)" centered on financial instruments business, supporting individual customers' asset formation and asset management through a wide product lineup including domestic and foreign equities, investment trusts, and bonds. As a subsidiary of Tokai Tokyo Financial Holdings, Inc., the company is listed on the Standard Market of the Tokyo Stock Exchange. In response to the aging society, the company also offers asset succession services such as the "Family Support Securities Account" and gifting schemes utilizing securities, with community-rooted, customer-first business operations serving as a pillar of its management.

Business Model

Revenue is composed mainly of three pillars: ① brokerage commissions centered on Brokerage Trading of Stocks (¥2,718 million in FY2026 (ending March 2026)), ② trading gains and losses on proprietary equity holdings (¥737 million in the same period), and ③ net financial income and expenses related to margin transactions and similar activities (¥104 million in the same period). Through building long-term relationships with customers via face-to-face sales, trust fees from investment trusts linked to asset balances (other brokerage commissions of ¥344 million) are also expanding as stable revenue, and diversification of earnings is progressing.

Company Strengths

Founded in 1944, the company has over 80 years of operating history and continues to conduct community-based, face-to-face sales centered on Aichi Prefecture. It supports financial literacy improvement through seminars for local companies and municipal officials, and offers asset succession services in partnership with external experts, achieving both deeper penetration of its existing customer base and acquisition of new customers.

The medium-term management plan formulated in October 2025 sets targets of ¥360.0 billion in assets under custody and ROE of 8.0% by the end of March 2028. However, as of the end of FY2026 (ending March 2026), the company had already achieved assets under custody of ¥320.3 billion and ROE of 8.7%. ROE already exceeds the target level, demonstrating strong financial discipline and profitability.

Other fees received, mainly trust fees from investment trusts, expanded to ¥344 million in FY2026 (ending March 2026), up 23.5% year on year. The accumulation of stable, balance-linked revenue is reducing reliance on brokerage commissions, which are prone to fluctuation with market conditions, and contributing to a more stable revenue structure.

ENVALITH's Perspective

Operating profit of ¥739 million (up 67.5% year on year) and net income of ¥684 million (up 74.4% year on year) for FY2026 (ending March 2026) largely reflect the favorable external market environment, as the average daily trading value on the Tokyo Stock Exchange Prime Market rose 32.4% year on year to ¥6,701.5 billion. While Brokerage Trading of Stocks commissions surged 42.2% year on year, investment trust sales commissions moved in the opposite direction, declining 15.6% year on year, warranting continued attention to the qualitative improvement of earnings.

The year-end dividend for FY2026 (ending March 2026) is ¥100 per share (a substantial increase from ¥60 in the previous fiscal year), with a dividend payout ratio of 58.3%. While the company maintains its policy of not disclosing earnings and dividend forecasts, its proactive return stance linked to profit levels can be evaluated favorably. On the other hand, the dividend for the next fiscal period remains undecided at this time, and given the nature of the securities business, which is highly susceptible to earnings volatility, uncertainty regarding the sustainability of dividends remains dependent on market conditions.

The medium-term management plan covering April 2025 to March 2028 sets forth the sophistication of asset management, the enhancement of asset formation support, and the smooth intergenerational transfer of assets as priority measures. Against the tailwind of external factors such as the progression of the declining birthrate and aging population and the spread of the new NISA system, whether the expanded use of the Family Support Securities Account and gifting schemes will strengthen the customer base, and the progress made during the plan period, will be key to the mid- to long-term corporate value assessment.

Growth Strategy

Enhancement of asset management sophistication, wealth succession support, and stabilization of the revenue structure based on the medium-term management plan (2025-2028)

Continuing to expand the product lineup, including domestic and foreign equities, investment trusts, and bonds, to meet customer needs. Aiming to acquire new customers and expand existing customers' assets through support for improving financial literacy via seminars targeting local companies and municipalities.

Capturing intergenerational asset transfer needs arising from the declining birthrate and aging population through the launch of the "Family Support Securities Account" and the provision of gift schemes utilizing securities. Building a comprehensive support system for wealth succession, including inheritance and gifting, through collaboration with external specialists.

Expanding balance-linked trust fee revenue from investment trusts (other fees received) to build a stable revenue base less susceptible to market fluctuations. Other fees received in FY2026 (ending March 2026) are on an expanding trend at ¥344 million (up 23.5% year on year), with the accumulation of assets under custody contributing to continued revenue stabilization.

Last updated: July 19, 2026