FinTech Global Incorporated (8789) — Company information

Business

Fintech Global Incorporated is a financial services company specializing in structured finance, founded in 1994. The company consists of three segments: the Investment Banking Business (PE Investment, Asset Management, aircraft business, Truck Operating Lease, and renewable energy) as its core, the Public Consulting Business targeting local governments, and the Entertainment & Service Business, which operates Moomin Valley Park and Metsä Village in Hanno City, Saitama Prefecture. The group comprises 21 consolidated subsidiaries and 2 equity-method affiliates, and is listed on the Standard Market of the Tokyo Stock Exchange (securities code 8789).

Business Model

In the Investment Banking Business, flow income from forming, investing in, and recovering PE funds for business succession deals is combined with stock-type income from asset management, based on assets under custody of ¥161,700 million (as of the end of September 2025). Arrangement fees from Truck Operating Lease and aircraft leasing also contribute, achieving a high gross profit margin (68.9% in FY2025 (ended September 2025)). The Public Consulting Business is in a phase of upfront investment, while the Entertainment & Service Business turned profitable in FY2025 (ended September 2025).

Company Strengths

Sales of Private Equity (PE) Investment related to business succession deals reached ¥3,637 million, up 84.5% year on year, while gross profit surged 111.0% to ¥3,544 million. The gross profit margin was extremely high at 97.4%, driving profitability across the entire group. The investment recovery cycle is expanding steadily, resulting in highly repeatable earnings.

Sales of contributions for the Truck Operating Lease reached ¥5,010 million, up 179.9% year on year, while revenue from arrangement and fund management expanded to more than three times the previous consolidated fiscal year. Against a backdrop of growing demand for leasebacks of used large commercial vehicles, the investor base is expanding as the number of contracts with business partners increases.

ROE for the fiscal year ending September 2025 reached 20.8% (up 2.0pt year on year), achieving the target of over 20%. The company maintained a sound financial base with an equity ratio of 40.3%, while utilizing financial leverage of 2.34x. ROE has remained around 20% for three consecutive fiscal years since the fiscal year ended September 2023, reflecting management that has established highly capital-efficient operations.

ENVALITH's Perspective

Net profit attributable to owners of the parent for the interim period of FY2026 (ending March 2026) increased sharply to ¥3,192 million (up 147.3% year on year), but this was boosted by a one-time factor: a gain of ¥1,556 million on the sale of fixed assets associated with the partial transfer of shares in Moomin Story Co., Ltd., which was recorded as extraordinary income. On an ordinary profit basis, profit was ¥2,358 million (up 37.8% year on year), which is closer to the underlying strength of the business. Achieving the full-year net profit forecast of ¥4,600 million would require additional extraordinary gains in the second half or a substantial buildup in ordinary profit, and the high progress rate (69.4% at the interim stage) should be interpreted as reflecting the front-loaded recognition of extraordinary income.

For the full-year forecast for FY2026 (ending March 2026), revenue was revised down by ¥2,700 million (14.8%) from the previously announced ¥18,200 million to ¥15,500 million, while operating profit of ¥4,200 million and ordinary profit of ¥4,000 million were left unchanged. The downward revision to revenue is thought to be mainly attributable to the deconsolidation of Moomin Story Co., Ltd. and others, and the maintenance of the profit forecasts suggests a structural improvement in profitability. However, uncertainties remain regarding the timing of recovery on Investment Banking Business deals expected to be recorded in the second half, as well as the expansion of upfront investment costs in the Public Support Service business.

As a material subsequent event, a debt guarantee dated May 1, 2026 was disclosed for financial institution borrowings of ¥13,000 million by B Holdings LLC, a non-consolidated entity. The guaranteed amount is equivalent to approximately 89% of net assets of ¥14,567 million at the end of the interim period, and given that details of the guaranteed party's financial condition and business operations have not been disclosed at this time, it needs to be carefully evaluated as a potential contingent liability risk. In addition, interest expense doubled from ¥65 million in the same period of the previous year to ¥142 million, and the increased interest burden accompanying the expansion of borrowings is also a point that warrants close attention.

Performance Trend

From FY2021 to FY2025, revenue expanded sharply from ¥8,107 million to ¥14,433 million, and operating profit surged from ¥178 million to ¥3,406 million. In the first half (interim period) of FY2026 (ending September 2026), revenue reached ¥8,011 million (up 17.9% year on year), operating profit ¥2,553 million (up 45.1% year on year), and ordinary profit ¥2,358 million (up 37.8% year on year), maintaining the trend of increased revenue and profit. The gross profit margin improved to 63.2% (up from 63.2% to 70.0% year on year), reflecting the ongoing sophistication of the revenue structure. As external factors, rising demand for business succession has supported the origination of Private Equity (PE) Investment deals, and the aircraft shortage market environment has contributed to the stabilization of lease revenue through lease contract extensions, though this has been accompanied by a headwind from a decrease in technical service projects. Full-year forecasts call for revenue of ¥15,500 million (up 7.4% year on year), operating profit of ¥4,200 million (up 23.3% year on year), and net income attributable to owners of the parent of ¥4,600 million (up 116.8% year on year).

Growth Strategy

Multi-axis growth through expansion of PE investment, truck leasing, and aviation business, together with the cultivation of public and renewable energy businesses

Recovery of large-scale deals originated in the previous consolidated fiscal year progressed steadily during the current interim period, and Investment Banking Business segment profit increased 59.8% year on year to ¥3,373 million. The Company will continue to promote origination of new deals and aim for continued expansion of the recovery cycle.

Sales of capital contributions in the current interim period reached ¥4,270 million, and arrangement-related sales more than doubled compared to the same period of the previous year. Driven by an increase in the number of contracts with business partners and steady progress in securing vehicles, the Company aims for further expansion in scale.

From the first quarter, the business was reorganized into an independent segment as "Investment Banking - Aircraft Division." While lease revenue has increased due to leased assets accumulated in the previous consolidated fiscal year, the number of technical service deals continued to decline due to lease extensions caused by aircraft shortages, and segment profit remained at ¥48 million, down 67.1% year on year.

Of the 10 solar power plant development projects, 3 projects began electricity sales as of the end of March 2026, and 1 additional project began electricity sales in April, progressing steadily. Segment loss expanded to ¥192 million due to upfront investment in human resources, but the transition to a monetization phase is progressing as electricity sales revenue moves into full swing.

Fintech Global Trust Co., Ltd. was newly consolidated from the current interim period. Through the internalization of trust functions, the Company aims to expand customer-facing services and create new revenue opportunities.

Assets under custody increased to approximately ¥162.6 billion (up 0.5% from the end of the previous consolidated fiscal year). Through progress in the acquisition of target assets in solar power plant development projects and continued residence investment for overseas investors, the Company will expand the foundation of stock-type revenue.

FinTech Global Incorporated

Business

Business Model

Company Strengths

ENVALITH's Perspective

Interim net profit up 147% is heavily reliant on extraordinary gains; the ordinary profit-based underlying performance should be scrutinized

Full-year revenue forecast revised down 14.8% from the previous guidance, but operating and ordinary profit forecasts left unchanged, suggesting improved profitability

The large subsequent-event debt guarantee (¥13,000 million) warrants close attention as an off-balance-sheet risk

Performance Trend

Growth Strategy

Disclaimer

FinTech Global Incorporated

Business

Business Model

Company Strengths

High profitability and rapid growth in PE Investment

Rapid expansion of Truck Operating Lease and diversifying revenue sources

ROE exceeding 20% with efficient capital use and a sound financial base

ENVALITH's Perspective

Interim net profit up 147% is heavily reliant on extraordinary gains; the ordinary profit-based underlying performance should be scrutinized

Full-year revenue forecast revised down 14.8% from the previous guidance, but operating and ordinary profit forecasts left unchanged, suggesting improved profitability

The large subsequent-event debt guarantee (¥13,000 million) warrants close attention as an off-balance-sheet risk

Performance Trend

Growth Strategy

Expansion of the origination and recovery cycle in business succession PE investment

Rapid expansion of Truck Operating Lease

Independent segmentation of the aircraft leasing business and strengthening of its revenue base

Upfront investment in Public Support Service and monetization of the renewable energy business

Internalization of trust functions through the establishment of Fintech Global Trust

Continued strengthening of the stock-type revenue base in the Asset Management Business

Disclaimer