KOBAYASHI YOKO CO.,LTD.

Business Details

This segment's core operations are brokerage services for exchange-traded forex margin trading (Click 365) and exchange-traded stock index margin trading (Click Stock 365) based on the Financial Instruments and Exchange Act, as well as commodity futures trading brokerage based on the Commodity Derivatives Act. The main subsidiary is Fujitomi Securities Co., Ltd. This core segment accounts for approximately 44% of the group's overall operating revenue (FY2026, ending March 2026), and also includes other revenue such as gold bullion sales. Its structure means performance is significantly affected by fluctuations in commodity markets, stock markets, and foreign exchange rates.

Recent Overview

Fee income rose 9.6% year on year to ¥2,128 million, achieving the annual target, but segment profit declined 5.3%.

FY2026 (ending March 2026) got off to a difficult start with a sharp stock market decline in April (the Nikkei average fell to ¥30,792 on April 7), but the company focused on acquiring new customers and increasing assets under custody, aided by the subsequent market recovery and gold prices surpassing ¥20,000 for the first time in history. Fee income from financial instruments trading rose to ¥1,650 million (up 5.8% year on year) and fee income from commodity futures trading rose to ¥478 million (up 25.1% year on year), achieving revenue growth in both areas, bringing total fee income to ¥2,128 million (up 9.6% year on year). On the other hand, segment profit declined to ¥217 million (down 5.3% year on year), as an increase in operating expenses weighed on profit. Segment assets expanded to ¥15,805 million (up 33.9% year on year), primarily due to a significant increase in guarantee deposits paid (up ¥2,655 million).

Key Products

Growth Drivers

• Expanding demand for commodity futures trading driven by the historic surge in gold prices (rising to ¥28,498 in January 2026, surpassing ¥20,000 for the first time in history during the period)
• Increased awareness and new customer acquisition through the affiliate advertising strategy for Systre Select 365 (Click 365 automated trading service)
• Activation of Click Stock 365 trading driven by the Nikkei average's historic high levels (rising to ¥59,332 in February 2026)
• Organic expansion of the customer base through ongoing referrals from existing customers
• Increase in assets under custody by capturing the upward trend in key products such as gold ETFs and the Nikkei 225

Risks

• Significant volatility in performance due to fluctuations in commodity markets, stock markets, and foreign exchange rates (volatility so high that disclosing performance forecasts is difficult)
• Risk of sudden market shifts due to historic oil price surges and financial market turmoil stemming from the worsening situation in Iran in March (the Nikkei average's March decline of ¥7,786 marked a record largest drop)
• Risk of sudden market shifts due to changes in the external environment such as US trade policy (reciprocal tariffs) and geopolitical risks
• Pressure on segment profit from increased operating expenses (FY2026 ending March 2026: segment profit down 5.3% year on year)
• Decline in asset efficiency due to a significant increase in guarantee deposits paid (up ¥2,655 million)
• Stagflation risk and financial market instability due to the prolonged situations in the Middle East and Ukraine