Akatsuki Corp.

Business Details

Centered on Akatsuki Securities Co., Ltd., the segment strategically promotes expansion of the financial instruments intermediary (IFA) business and strengthens alliances with regional financial institutions. In addition to trading and brokerage of securities, underwriting and secondary offerings, and handling of public offerings and secondary distributions, expansion of assets under management for partner financial institutions through the subsidiary Japan Wealth Advisers Co., Ltd. (JWA) supports the revenue base. The IFA Business, which the company entered in earnest in 2014, has been on an expansion trend, and the company continues to strengthen the three pillars of face-to-face support systems, systems, and product lineup.

Recent Overview

Both brokerage commissions and trading gains expanded, achieving increased revenue and profit

In the Securities-Related Business for FY2026 (ending March 2026), operating revenue was ¥16,702 million (up 3.9% year on year) and segment profit was ¥2,447 million (up 14.5% year on year). As of the end of March 2026, assets under custody (including assets managed by JWA's partner financial institutions) expanded to ¥803,874 million (up ¥177,789 million from the end of the previous fiscal year), and the IFA division's assets under custody expanded to ¥522,486 million (up ¥122,193 million). The business base was expanded through the equity-method affiliation of Shin Securities Sakamoto Co., Ltd., the acquisition of Innovation IFA Consulting's commissioned-type IFA division, and new business alliances with three regional shinkin banks.

Key Products

Growth Drivers

• Continued expansion of the IFA Business: assets under custody trended upward to ¥803,874 million as of the end of March 2026 (up ¥177,789 million from the end of the previous fiscal year), with the IFA division reaching ¥522,486 million (up ¥122,193 million)
• Strengthening of Regional Financial Institution Alliances: continued new business development, including new alliances with Aichi Shinkin Bank, Boso Shinkumi Bank, and Kosan Shinkin Bank
• Expansion of product lineup: the number of domestic investment trusts handled increased to 945 issues (supporting the new NISA), expansion of foreign investment trust and foreign bond handling, and launch of domestic equity VWAP guarantee trading
• Investment in systems and digitalization: improved customer convenience through the introduction of AI chat, digitalization of foreign bond handling, and extension of US equity order acceptance hours (until 8:00 p.m.)
• Strengthening of business base through M&A: making Shin Securities Sakamoto Co., Ltd. an equity-method affiliate (33.4% of voting rights) and acquiring Innovation IFA Consulting's commissioned-type IFA division

Risks

• Market environment risk: fluctuations in brokerage commissions and trading gains/losses due to deterioration of the market environment amid global economic uncertainty, including tensions in the Middle East and interest rate trends
• Fixed cost increase risk: rising fixed costs due to increased personnel accompanying system investments and strengthened management systems to improve customer service
• Product content review risk: potential impact on operating revenue from reviews of product content, such as the policy of not soliciting structured bonds
• Cybersecurity risk: ongoing costs for system vulnerability assessments and remediation in response to heightened cyber risk
• Competition and regulatory risk: changes in the business environment due to intensifying competition in the IFA Business and regulatory changes related to financial instruments transactions