SBI SECURITIES Co., Ltd. (E03816) Stock Price

SBI Securities is a financial institution whose core business is providing online securities trading services for individual investors. The company primarily operates through the internet and call centers, handling buy and sell orders for securities including stocks. Additionally, it offers a comprehensive range of financial services tailored to investor needs, including underwriting services and the handling of securities offerings and distributions.

The company's primary customers are individual investors, and its revenue structure is based on commission income generated through its online trading platform. In addition to brokerage commissions on stock trades, the company generates revenue from the sale of investment trusts and foreign exchange margin trading (FX) products. A key characteristic of the business is that revenue is directly tied to the level of customer investment activity.

The SBI Securities Group operates as a single segment focused on investment and financial services, with the parent company's securities business at its center and various related operations throughout the group. The group includes subsidiaries such as SBI Simplex Solutions (systems development), SBI Tsuji Hongo M&A (M&A services), SBI Money Plaza (face-to-face sales channels), SBI Liquidity Market (FX operations), and SBI Benefit Systems (defined contribution pension services), creating a comprehensive financial services delivery structure.

SBI Securities has set an ambitious growth strategy aimed at achieving consolidated pre-tax profit of 500 billion yen by the fiscal year ending March 2029, marking the company's 30th anniversary. To reach this goal, the company plans to double its group customer base from the current 50 million to 100 million accounts, while increasing the profit contribution from overseas operations to 30%. In the securities business, achieving 30 million group securities accounts is positioned as a key quantitative target. The company is accelerating customer base expansion by leveraging the impact of the "Zero Revolution," which eliminated domestic stock trading commissions starting in September 2023.

The company's differentiation strategy centers on strict adherence to "customer-first principles," delivering "industry-lowest commissions with industry-highest service quality." To diversify revenue sources, the company is shifting away from dependence on traditional stock trading commissions and strengthening corporate-focused operations such as underwriting and institutional investor services. Additionally, the company is building a more stable revenue foundation by expanding stock-type businesses including SBI Wrap and iDeCo (individual defined contribution pension plans). The company is offsetting the 38 billion yen in annual revenue loss from the Zero Revolution through strengthened operations in other revenue sources.

In new market development, the company is intensifying its approach to younger investors with limited or no investment experience and advancing an open alliance strategy with companies that have strong customer bases. The company is also deepening partnerships with regional financial institutions and focusing on establishing systems to handle next-generation financial products such as security tokens. The company is actively considering business expansion through M&A in areas where synergies are expected, maximizing the competitive advantages of its corporate ecosystem model.

Regarding technological innovation, the company is making aggressive investments in developing new services utilizing advanced technologies including AI, big data, blockchain, IoT, and robotics. Through the adoption of digital technologies, particularly blockchain as a core FinTech technology, the company is achieving differentiation from competitors and improving customer convenience. The company is continuously working to ensure system security and optimize user experience, while positioning enhanced capabilities for next-generation financial products such as digital assets as an important priority.